Anson Resources (ASX:ASN) has agreed to place 20 million shares to an overseas sophisticated investor priced at $0.03 to raise $600,000.
Proceeds from the placement are intended to fund exploration at Anson’s 100% owned Paradox Lithium Brine Project located in the U.S. state of Utah.
This includes the Stage 2 metallurgical test work and plant development program.
Stage 2 will see 500 litres of brine processed in a bench-top lithium plant.
The 500 litres will come from a bulk sample of 30,000 litres of brine intended to be collected during the upcoming re-entry drilling of the historical Gold Bar Unit 2 well.
Results are to be used to design a pilot plant for in-field validation of the processing plant technology.
Metallurgical test work and plant development program
Samples taken from drilling the Gold Bar Unit 2 well will be used to conduct test work to determine the design of a processing plant to extract lithium and other minerals from the Paradox Basin brines.
The proposed stages of the metallurgical test work are:
- Stage 1: Assay samples collected during the Gold Bar Unit 2 drilling for lithium and other minerals at a laboratory in the U.S;
- Stage 2: Process a bulk sample of 500 litres of brine from the Gold Bar Unit 2 re-entry drilling in a bench-top plant with a goal of producing lithium carbonate equivalent; and
- Stage 3: Design an in-field pilot plant prior to progressing to further drilling, feasibility study, and ultimately full-scale production.
Gold Bar Unit 2 well
Anson plans to re-enter the historic Gold Bar Unit 2 oil well to test super saturated brines for lithium.
The Gold Bar Unit 2 well has been previously drilled to a depth of 9,862 feet in search of oil.
The Clastic 31 Zone, targeted by Anson, which is known to contain supersaturated brines is located at 7,080 feet.
Historical brine analysis taken within 800 metres of the project produced results ranging from 500 ppm to 1,700 ppm lithium, comparable to the world's highest grades of lithium brine.
Exploration target increase opportunity
Anson’s Exploration Target of 30 to 40 million barrels of brine grading 500 to 1,700 ppm of lithium was calculated for Clastic Zone 31 only of Gold Bar Unit 2.
Additional horizons are known to contain brines, specifically Clastic Zones 7, 9, 13, 21, 25, 27 and 43.
Clastic Zone 17 brine has been previously assayed for lithium with historical records indicating lithium values of up to 339 ppm with the zone having a thickness of 35 feet at a depth of 6,205 feet.
By comparison, Clastic Zone 31 is 25 feet thick and is at a depth of 7,080 feet.
The additional brine bearing Clastic Zones may provide significant additional upside potential to Anson’s current Exploration Target.
Upcoming drilling will test new zones
Anson is planning a drilling program to commence late in the current December quarter with the main target being the lithium-rich brines within Clastic Zone 31.
At the same time, and for minimal incremental cost, Clastic Zones 17, 19, and 29 will be sampled and flow tested.