- Anson Resources (ASN) receives approval to drill two production wells for lithium and other minerals at its Paradox Brine Project in Utah
- The wells will be located near Robert’s Rapture, with an existing pipeline corridor to transport brine to proposed processing plants
- The company is aiming to begin road and drill pad construction shortly
- Shares are up 4.65 per cent to trade at 9 cents each at 11:13 am AEDT
Anson Resources (ASN) has announced a major step towards production at its Paradox Brine Project in Utah.
The company was given the green light by Utah’s state government to drill two production wells at the site for the extraction of brine to produce lithium carbonate, bromine and other minerals.
To obtain the approval, ASN submitted an application permit to drill (APD) to Utah’s School and Institutional Trust Lands Administration (SITLA) and the Department of Natural Resources, Division of Oil, Gas and Mining (UDOGM).
Accordingly, representatives from both authorities conducted a site inspection in August. The two production bores are located on the “The Little Utah” lease, which covers 80 acres (32 hectares) and was granted to Anson by the Utah government earlier this year.
The company is reportedly in negotiations with earth moving and building companies for the construction of roads and drilling pads, with work on access roads expected to commence once negotiations are finalised.
Anson’s executive chairman and CEO Bruce Richardson said the granting of the application permit represented a major step towards commencing production.
“These production wells will provide a significant insight into the engineering and logistics of the Paradox operation, with location of the wells carefully considered and nearby the lithium bromine plant planned to be built at Blue Hills,” he said.
“By leveraging the pressure created by Robert’s Rapture, Anson can transport the brine to a location that has easy access to power, gas and transportation without pumping, which has a direct impact upon production costs.”
Mr Richardson added that the location of the wells would provide access to an existing pipeline corridor where ground disturbance had already occurred.
“Anson has carefully considered and designed the extraction process to ensure minimal ground disturbance and impact unsocial and recreational activities in the area in which we operate as part of our adherence to our focus on our ESG policy.”
Following the announcement, shares were up 4.65 per cent to trade at 9 cents each at 11:13 am AEDT.