- Anson Resources (ASN) updates its preliminary economic assessment for the Paradox Brine Project after another engineering study was conducted
- ASN says the additional study resulted in improvements in the sodium bromine production process and more accurate capex and opex estimates
- Specifically, the production cash cost has reduced by 67 per cent and the production of lithium has been reduced by 47 per cent
- The Utah-based asset’s total capital expenditure increased by 14.7 per cent to US$203 million (A$277.3 million) due to an ESG review
- Shares in Anson Resources are up 3.19 per cent at 9.7 cents each
Anson Resources (ASN) is updating its preliminary economic assessment for the Paradox Brine Project after another engineering study was conducted.
The additional study was carried out by a third party as part of a pre-feasibility
study for the project in Utah, US.
ASN said pleasingly, it resulted in improvements in the sodium bromine production process and more accurate capex and opex estimates.
Specifically, the production cash cost has reduced by 67 per cent to US$377 (A$515.4) per net tonne of by-product revenue.
While the production of lithium has been reduced by 47 per cent to US$2431 (A$3323.4) per net tonne of by-product revenue.
Additionally, the sales price in the preliminary assessment has been increased to US$15,000 (A$20,490) per tonne to reflect the rising demand for lithium carbonate.
However, the project’s total capital expenditure increased by 14.7 per cent to US$203 million (A$277.3 million) due to an environmental, social and governance review.
Paradox’s net present value post-tax now sits at US$468 million (A$639.4 million) with an internal rate of return of 31 per cent.
Anson believes it will take three years of permitting, detailed engineering, and construction prior to the commissioning and phase one operations at Paradox.
The company aims to recover valuable chemicals from a unique salt brine resource at the site, as well as targeting the supply of lithium chemicals to the rapidly growing battery market.
Shares in Anson Resources were up 3.19 per cent at 2.7 cents each at 12:17 pm AEST.