Drilling to Target Priority Cane Creek Well

Anson Resources Limited (Anson or the Company) is pleased to announce that all requisite approvals for drilling at its high-priority Cane Creek 32-1 well at the Company’s Paradox Lithium Project in Utah have now been granted.

Highlights:

  • Approval for re-entry and drilling of high-priority Cane Creek Well granted at the Paradox Lithium Project in Utah.
  • Approvals allow Anson to progress its major resource expansion drilling campaign at Paradox.
  • Cane Creek drilling is designed to convert a large portion of the Paradox Exploration Target into Indicated and Inferred Resources.
  • Drilling will target the large Mississippian brine aquifer which has a lithiumrich zone of ~100m to ~250m thickness.
  • Drilling Program at Cane Creek to commence immediately after completion of current drilling at Long Canyon Unit 2 Well.

Anson’s Application Permit to Drill (APD) Cane Creek has been approved by the Government of Utah. This is a significant step-forward for the Company’s resource expansion drilling program at the Paradox Project and will allow it to re-enter and drill the (already open) Cane Creek 32-1 well.

Anson’s drilling at Cane Creek will target the large Mississippian supersaturated brine aquifer and is designed to convert a large portion of the existing Paradox Exploration Target into JORCcompliant Indicated and Inferred Resources.

The Company has defined a large Exploration Target for the Mississippian brine aquifer, outlined in Table 1 below (extracted from ASX Announcement 24 February 2022). The Mississippian brine aquifer has a substantial lithium-rich zone of approximately 100m-250m thickness.

This was previously intersected during historical oil exploration, but to date has only been sampled once, adjacent to the Project area, providing a significant resource expansion opportunity for Anson.

The Exploration Target figure is conceptual in nature as there has been insufficient exploration undertaken on the project to define a Resource for the Mississippian Unit. It is uncertain that future exploration will result in a Resource.

Drilling at Cane Creek is planned to commence immediately after completion of the current phase of drilling, which is ongoing at Long Canyon Unit 2 Well (see ASX Announcements 30 May, 26 May, 23 May and 28 March 2022).

Paradox Lithium Resource Expansion Strategy

Anson’s resource expansion drilling program is focused on delivering a significant resource upgrade at the Paradox Project and is comprised of a combined “Eastern” and “Western” expansion strategy (see Figure 1 below).

The planned resource upgrade will support a Detailed Feasibility Study (DFS) and the development of the Paradox Project into a substantial lithium (and bromine) producing operation. Leading global engineering solutions firm Worley is undertaking the DFS for the development of a lithium production facility at Paradox (see ASX announcement 24 November 2021).

The Company’s resource expansion strategy is focused on:

  • Increasing the existing JORC 2012 estimates both vertically and horizontally at existing targets across the Paradox Project area; and
  • Defining resources at new claims to be added adjacent to the Paradox Project.

The ongoing drilling at Long Canyon Unit 2 well, and the upcoming drilling at Cane Creek 32-1 well, allows Anson to execute the “Eastern” component of the Paradox Lithium Resource expansion strategy in full (see ASX Announcement 24 February 2022).