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Anson Resources (ASX:ASN) stakes new lithium brine project near Paradox, Utah

ASX News, Materials
ASX:ASN      MCAP $120.1M
30 January 2023 11:38 (AEST)

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Anson Resources (ASN) has bolstered its North American asset portfolio by staking a “major” new lithium brine project in the Paradox Basin of Utah, US.

The Green River lithium project spans 106.2 square kilometres and lies just 50 kilometres northwest of Anson’s flagship Paradox project.

Anson Executive Chairman and CEO Bruce Richardson said the company planned to leverage its experience at Paradox, which has similar geology to Green River, to fast-track exploration and mineral resource delineation in the new area.

“The company has recently announced the commencement of its drilling program for the Western Strategy at Paradox, which is expected to further substantially increase the project’s existing JORC mineral resource,” Mr Richardson said.

“The Green River lithium project is expected to further increase our ‘global’ JORC resource in the US and support future increases in production of lithium and other minerals from our proposed lithium-producing operation in Utah, and, in turn, drive shareholder value.”

Similar to its Paradox exploration strategy, Anson said it planned to re-enter existing oil wells at Green River to “time- and cost-effectively” define lithium brine resources.

Many of these historical wells, though plugged and abandoned, were drilled into the thick Mississippian units in the area, and Anson said they could be re-entered at a much lower cost than if it were to drill new holes.

In this vein, the company is currently carrying out the necessary environmental, archaeological and land survey work required to submit to US regulators a Notice of Intent to re-enter the wells.

On top of the geological similarities to the Paradox area and the ability to carry out a similar exploration strategy at Green River, Anson said the new project already had major infrastructure in place, including roads, rails, power and water.

Shares in Anson Resources were trading 3.51 per cent in the red at 27.5 cents at 11:37 am AEDT.

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