See our exclusive index of companies on the move:Explore Stocks
- Top Stocks
- Top Australian Gold Stocks
- Top ASX Copper Stocks
- Top ASX Nickel Stocks
- Top ASX Rare Earth Stocks
- Top Battery Metals Stocks on the ASX
- Top Australian Lithium Stocks
- Top Graphite Miners on the ASX
- 10 ASX Cannabis Stocks
- Top ASX Tech Stocks
- Top AI Stocks on the ASX
- On Site
- About Australian Cannabis Investing
- About Australian Resource Investing
- About Australian Tech Investing
- About Australia Investing
- Of Interest
- ASEAN-Australia-New Zealand Trade Agreement
- Association of Southeast Asian Nations (ASEAN)
- Australian FAQ on ASEAN
- Australia Government on Foreign Investments
- TOP STOCKS
- COMPANY PROFILES
- RESOURCE INVESTING
- TECHNOLOGY INVESTING
- CANNABIS INVESTING
- INNvestor REPORTS
Anson Resources Limited (ASX: ASN, ASNOC, ASNOD) (Anson or the Company) is pleased to announce that drilling of the targeted Mississippian Units at the Long Canyon No. 2 well at the Paradox Lithium Project (the Project) in Utah, USA, has delivered a further 87% increase in lithium grade over the most recent reported assays at the Project.
- Anson has delivered a further 87% increase in Lithium assay grade in drilling of the targeted Mississippian Unit at the Long Canyon No. 2 well at its Paradox Lithium Project
- Drilling returned an average assay grade of 187ppm Lithium and 3,793ppm Bromine through the entire drilled zone compared to recently reported 100ppm Li
- Lithium and bromine grades are also significantly higher than the maximum grade range used in the Project’s Exploration Target
- The assay results confirm the Mississippian Units’ massive, supersaturated brine aquifer is lithium and bromine rich
- The brines are similar to those of the previously sampled Clastic Zones where the Project’s existing Indicated and Inferred JORC Resource has been estimated
- Drilling is progressing on the Cane Creek 32-1 well to sample the Mississippian brines, which is designed to increase the JORC resource
- Mississippian Units within historic wells on the western side of the Project (‘western strategy”) are to be re-entered and drilled to further expand the Paradox Resource
The Company is now pleased to advise that results of all four brine samples from the recent drilling into the Mississippian units at Long Canyon No. 2 have been returned and have delivered an average assay value of 187ppm lithium (and 3,793ppm bromine).
See Table 1 for sample assay results from the recent drilling at Long Canyon No. 2.
This assay grade represents an 87% increase on the first assay value from the recent drilling (100ppm lithium), and a 134% increase on the only historical lithium value recorded at the Project (80ppm lithium). They are also higher than the maximum lithium grade range used in the Exploration Target for the Mississippian Units (140ppm) (summarised in Table 2).
Table 1: Assay results from sampling the Mississippian Unit from the Long Canyon Unit 2 well.
The Mississippian Units host a massive brine aquifer with a thickness of between 70m to 170m. It is situated approximately 500m below the clastic zones that have been used to calculate the existing Indicated and Inferred JORC resource estimate.
The ability to now include assay results from the Mississippian Units provides the opportunity to significantly expand the Paradox resource in Anson’s planned upcoming resource upgrade for the Project.
Paradox Exploration Target
The Project has an Exploration Target for the Mississippian supersaturated brines of 1.3Bt – 1.8Bt of brine grading 80 – 140ppm Li and 2,000 – 3,000ppm Br (see ASX announcement April 6, 2021) (summarised in Table 2). The maximum assay ranges in the Exploration Target are 140ppm Li and 3,000ppm Br, which are significantly lower than the latest laboratory assay results reported in this announcement - average grade of 187ppm Li and 3793ppm Br.
The latest assay results may indicate a connectivity between the Mississippian and Paradox Formation Clastic zones due to the Robert’s Rupture geological feature, which has resulted in the Mississippian rocks being faulted against the Paradox salt beds near the Long Canyon No. 2 well.
Table 2: The Mississippian Units Exploration Target Range with brine & grade variables.
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 Mississippian Units. It is uncertain that future exploration will result in a mineral resource.
The Mississippian Units for the entire Project area are currently only included as an Exploration Target in the JORC estimate (See Announcement 6 April 2021).
This Exploration Target was calculated by an independent third party and used data generated during previous oil and gas-focused drilling programs. The review identified several wells within the Project area that have been drilled into the Mississippian Units. They included Long Canyon No1, Long Canyon Unit 2, Coors USA 1-10LC, White Cloud 1, Big Flat Unit 5 and Mineral Canyon Fed 1–3, see Figure 2.
In addition to these wells, numerous other wells that abut the project area have been drilled into or through this limestone unit. These include holes such as Big Flat 1, 2 and 3, the locations of which are shown in Figure 1.
This article includes content from Anson Resources Limited, 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.
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 sources that have gone undeveloped. Fortunately, companies are exploring and developing lithium assets in North America’s mining-friendly jurisdictions, such as Utah and Quebec. Will new lithium producers create a North American supply chain that keeps up with demand?
Anson Resources (ASX:ASN) is an Australian-based exploration and development mining company focusing 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 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.
The project also contains bromine that may be extracted and processed as a valuable secondary product. Anson Resources has a non-binding memorandum of understanding (MoU) 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 of 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.
- 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.
Paradox Lithium Project
The Utah-based project covers 95 square kilometers and is in a great position to become a domestic lithium supplier to Tesla and other automakers developing EVs. The project will utilize the direct extraction process, a cost-effective technique for extracting lithium from underground aquifers.
The project contains lithium and bromine, which use similar extraction and processing methods. In addition, the Paradox Project has water access and robust local infrastructure to support future development. Anson Resources is presently in late-stage exploration on the way to project development and then the commencement of production.
- Promising Resource Estimate: A JORC compliant resource estimate indicates 186,000 tonnes of lithium carbonate equivalent. Completed material test work indicates that the resulting lithium products will meet or exceed ‘battery grade’ standards, reaching up to 140 ppm lithium.
- Major Resource Upside Potential: JORC Resource expansion drilling program currently underway.
- Robust Local Infrastructure: The project has existing infrastructure that contains electricity, gas, road, rail and water.
- No Evaporation Ponds Necessary: Anson’s chosen DLE mining and extraction technique does not require evaporation ponds, common in lithium brine projects. This saves on CAPEX, OPEX and processing time and will deliver significant ESG benefits.
Yellow Cat Vanadium-Uranium Project
The Yellow Cat project covers 708 hectares with historic high-grade uranium-vanadium exploration and production. The project is located 40 kilometers away from Anson’s Paradox Lithium project in Utah, creating an opportunity to develop both simultaneously.
- Strong Historical Results: Previous drilling results include 0.3 feet at 37,500ppm uranium and 3.34% vanadium. Historical production reached 114 mlbs at 2,400 ppm uranium and 1.47 vanadium.
- Nearby Uranium Mill: The project is close to White Mesa Mill, which is the only conventional and fully licensed uranium/vanadium mill in the United States.
Anson has an extensive project area in Western Australia covering a total of 458 square kilometers across three projects. Each project contains high grades of nickel, copper, and PGEs based on historical exploration data. However, much of the project areas remain unexplored or underexplored, which provides an excellent exploration opportunity for Anson.
Western Australian Projects:
- The Bull Project: This claim covers 82 square kilometers in close proximity to Chalice Mining’s (ASX:CHN) world-class Julimar project and has not had any previous exploration for nickel, copper or PGEs. It contains a magnetic structure indicative of geological formations that contain these elements. Additionally, the project has road, rail, power and port infrastructure. Three areas have already been identified for future drilling.
- Ajana / Mary Springs Project: Covering 220 square kilometers, these claims have historical data indicating 390,000 tons at 6.5% lead, 3% zinc, at 15.0/t silver. Copper is visible, but the grade was not identified in historical assays.
- Hooley Well Project: The claim covers 154 square kilometers and is highly prospective for nickel, copper and PGEs. Shallow historical drilling on the claim intersected nickel and cobalt laterites. Results include up to 1.24% nickel at 8 meters.
Bruce Richardson - Executive Chairman and Chief Executive Officer
Bruce Richardson has spent more than 30 years developing business opportunities in China and is fluent in Mandarin. He has held senior positions in industry and government. In addition, he has 16 years experience in the private sector having worked as General Manager of one of Australia’s blue-chip companies in Shanghai. He also worked as General Manager of a UK-based company with production and marketing operations in China, and General Manager of a business consultancy company based in Beijing. Richardson has 10 years’ experience in the public sector having worked as an Australian Trade Commissioner in the Australian Embassy in Beijing, with responsibility for the resources portfolio, and as Trade Development Director, Australian Commerce & Industry Office Taipei, Taiwan. In 2006/07, Richardson worked for the Western Australian government as Manager China, Department of Industry and Resources developing business and political relationships with China. Mr. Richardson has lived in China for more than 15 years, where he has an extensive business network, particularly in the iron and steel industry. Over the past eight years Mr Richardson has been involved in developing resource projects and in attracting Chinese investment to these projects.
Greg Knox - Executive Director
Greg Knox is a qualified geologist and has more than 20 years of experience as both an exploration geologist and a mining geologist for a number of companies in Australia. He is a member of the Australasian Institute of Mining and Metallurgy. He is qualified as a “Competent Person” as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Knox is well traveled and has advised Anson on mining prospects in a number of different countries including Guatemala, Brazil, the Philippines, South Africa and the USA.
Michael van Uffelen - Non-Executive Director
Michael van Uffelen is an experienced director, CFO and company secretary actively engaged in managing companies. He holds a Bachelor of Commerce degree from the University of Western Australia and is a Chartered Accountant with more than 30 years’ experience gained with major accounting firms, investment banks and public companies. Michael was formerly the Company Secretary and CFO of Anson and is very familiar with Anson’s activities and ambitions, particularly Anson’s Paradox Lithium Project in Utah, USA.