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Anson Resources Limited (ASX: ASN, ASNOC, ASNOD) (Anson or the Company) is pleased to announce that it has entered into an agreement to purchase the strategically located Green Energy Lithium Project (the Project), from Legacy Lithium Corp (Legacy), in the Paradox Basin in south-eastern Utah, USA.
Highlights:
- Anson to purchase a lithium brine project from Legacy Lithium Corp. in the Paradox Basin,
- The proposed strategic acquisition will result in the Paradox Lithium Project becoming one contiguous mineralised block with an 8% increase in land area, to a total of 231.35 km2,
- 208 placer claims covering 16.85 km2 (4,160 acres) that abut the Paradox Project.
- Project hosts 18 historic oil and gas wells providing modelling data - 3 wells with recorded lithium values, planned to be used to upgrade a JORC Mineral Resource.
- NOI submitted to re-enter Cane Creek Fed 11-1,
- The Project purchase expected to increase the Exploration Target by 14%,
- Anson plans to upgrade the JORC Resource for the Paradox Lithium Project.
The increase in the project area is expected to result in an increase in the Exploration Target of 14%, see Table 1.
Table 1: Exploration Target estimation for the combined Paradox Lithium Project and Legacy Lithium claims.
The Exploration Target figure is conceptual in nature as there has been insufficient exploration undertaken on the project to define a mineral resource for the Leadville. It is uncertain that future exploration will result in a mineral resource.
The Green Energy Lithium Project has strong potential to deliver an increase in the existing JORC Mineral Resource estimate at Paradox without the need for further drilling. The Project area contains 18 historic oil and gas wells – and three of these wells have recorded lithium values: 173ppm in Clastic Zone 31, 134ppm in Clastic 19 and 81ppm in the Mississippi Units.
The Project acquisition increases the Paradox Lithium Project land holding by 8% to a total of 231.35 km2. The Project comprises 208 placer claims over a total area of 16.85km2 and is strategically positioned immediately adjacent to Anson’s lead asset, the Paradox Lithium Project, (Figure 1). In addition, it should be noted that a Plan of Operation (POO) and an Application to Drill (APD) has been lodged with the Bureau of Land Management and the Utah Department of Oil, Gas and Minerals (UDOGM) respectively to re-enter the Cane Creek Fed 11-1 well by the previous owners of the Green Energy Lithium Project.
Figure 1: Plan showing the location of Legacy Lithium Corp. Green Energy Lithium Project claims.
The data from the historic wells will contribute to a Mineral Resource upgrade at the consolidated Paradox Lithium Project and would be included in the development of the flow model Anson is currently preparing for the Paradox Lithium Project.
Acquisition Terms
Under the Agreement, Anson proposes to acquire all the placer claims that make up the Green Energy Lithium Project from Legacy Lithium Corp. for a consideration of USD1 million in cash and 15,060,981 Ordinary Shares in the Company (Consideration Shares). The transaction is subject to Legacy shareholder approval, in accordance the requirements of corporation laws and securities Laws applicable to Legacy, as determined by counsel to Legacy. There are no other material conditions precedent for the Agreement.
This article includes content from Anson Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Overview
Electric vehicles (EVs) are undergoing rapid consumer adoption, with a market expected to explode by a 24.5 percent CAGR between 2022 and 2028. Analysts expect EVs to create steadily-increasing lithium demand, with demand outpacing supply in 2022 and creating a deficit of 80,000 megatonnes. Mining companies that produce lithium likely won’t have any problems finding buyers.
The United States and Canada import most of their lithium to meet their ever-increasing needs. But that’s not for lack of deposits; both countries have significant lithium resources that have gone undeveloped. Fortunately, several companies are currently exploring and developing lithium assets in North America’s mining-friendly jurisdictions, such as Utah, USA and Quebec, Canada. Will new lithium producers create a North American supply chain that keeps up with demand?
Anson Resources (ASX:ASN) is an Australian-based mineral resources exploration and development company focusing on the resources necessary to meet the energy demands of the future. The company’s flagship Paradox Lithium project in Utah, a mining-friendly and politically stable jurisdiction, has the potential to become a world-class lithium producer within the massive emerging American EV battery industry. Anson has also expanded its strategic lithium project area in the Paradox Basin of Utah via the pegging of the Green River Lithium Project. It also has a portfolio of exploration assets prospective for nickel, copper and uranium.
Anson’s Paradox Lithium Project proposed extraction and purification plant
The Paradox Project asset holds significant lithium brine deposits, and the company has identified an extraction method that has delivered an extraction rate of 91.5 percent. This technique calls for passing the lithium through the resin, which captures the resin, and can then be separated from the resin with water. From that state, it can be processed into lithium carbonate.
The project hosts a substantial JORC mineral resource of 1.04 million tonnes of lithium carbonate equivalent (LCE) and 5.27 million tonnes of bromine. Anson is also undertaking a resource expansion program, and an upgrade to the mineral resource is proposed to be integrated into the Paradox project’s robust definitive feasibility study, which was completed in 2023.
Anson has a binding memorandum of understanding with leading direct lithium extraction (DLE) technology provider Sunresin to use its patented and proven DLE technology, which requires lower energy and water consumption, and in turn boosts the project’s ESG credentials. The agreement involves the development of a full-scale commercial lithium plant at the Paradox project.
The project also contains a significant bromine resource that may be extracted and processed as a valuable secondary product. Anson Resources has a non-binding memorandum of understanding with Tetra Technologies (NYSE:TTI) to help deliver brine production at Paradox.
The company’s management team has extensive relevant experience. Bruce Richardson, CEO and executive chairman, has held senior management positions in the private and public sectors for over 30 years. Greg Knox, executive director, has over 20 years experience as an exploration and mining geologist for companies. Michael van Uffelen, non-executive director, has over 30 years of experience in accounting, investments and corporate finance.
Company Highlights
- Anson Resources is focused on developing the Paradox Lithium Project into a significant lithium-producing operation.
- The project hosts a substantial mineral resource estimate of 1.04 million tonnes of LCE and 5.27 million tonnes of bromine, which will be integrated into the Paradox definitive feasibility study.
- The company is also undertaking a major resource expansion program at the project.
- The Paradox Project contains multiple lithium brine targets, and the company has identified an extraction method that produces an impressive return rate of 91.5 percent. Also, the project’s DLE method is expected to deliver significant ESG benefits.
- A binding memorandum of understanding with Sunresin to develop a full-scale commercial lithium plant using its patented and proven DLE technology at the Paradox project
- In addition, the project’s brine also contains bromine, creating a valuable second potential revenue stream for the asset.
- Definitive feasibility study, released in September 2022, confirms the Paradox project’s outstanding economics and ESG credentials for Phase 1 lithium development.
- Anson Resources has expanded its lithium footprint in the Paradox Basin, in Utah, with the strategic pegging of the Green River Lithium Project, just 50 kilometers from the Paradox Project
- Its other projects target nickel, copper, vanadium and uranium. The company aims to supply energy markets with the mineral resources necessary to power the future.
- The company has an experienced management team with a mix of technical, corporate and commercial skills driving the project towards its goals.
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Developing a Near-Term Clean Energy Project in Utah
Anson Resources: Developing a Near-Term Clean Energy Project in Utah
Anson Resources (ASX:ASN) focuses on the resources necessary to meet the energy demands of the future. The company’s flagship project, the Paradox Lithium Project, has the potential to become a world-class lithium producer and is located near Tesla’s massively productive gigafactory in the United States. Additional projects target nickel, copper, and uranium.
The company's flagship Paradox Project is located in Utah, a mining-friendly and politically stable jurisdiction. The asset holds significant lithium brine deposits, and the company has identified an extraction method that has delivered an extraction rate of 91.5 percent. This technique calls for passing the lithium through the resin, which captures the resin, and can then be separated from the resin with water. From that state, it can be processed into lithium carbonate. The company is currently undertaking a major JORC resource expansion drilling program, the results of which will feed into a Detailed Feasibility Study being carried out by global engineering firm, Worley.
Company Highlights
- Anson Resources is focused on developing its flagship project, the Paradox Lithium Project, into a significant lithium producing operation.
- The company is currently undertaking a major JORC Resource expansion program at Paradox, which will form part of a Detailed Feasibility Study which is being undertaken by leading global engineering consultants, Worley.
- The Paradox Project contains multiple lithium brine targets, and the company has identified an extraction method that produces an impressive return rate of 91.5 percent. Also, the project’s Direct Lithium Extraction (DLE) method is expected to deliver significant ESG benefits
- In addition, the project’s brine also contains bromine, creating a valuable second potential revenue stream for the asset.
- Anson Resources’ other projects target nickel, copper, vanadium and uranium. The company aims to supply energy markets with the mineral resources necessary to power the future.
- The company has an experienced management team with a mix of technical, corporate and commercial skills driving the project towards its ambitious goals.
This Anson Resources company profile is part of a paid investor education campaign.*