Anson Resources Ltd (ASX:ASN) has started the earthworks stage of a drilling program at Paradox Lithium Project in the Lithium Four Corners area of the U.S. state of Utah.
The work is the first stage of the fully funded program and includes preparing a drill pad and upgrading an access road.
Once the work is complete a drilling rig will be mobilised to site.
Breaking ground a “landmark milestone”
Bruce Richardson, managing director, said: “Breaking ground on at the Paradox Lithium Project is a landmark milestone for Anson.
"Our goal of becoming a lithium producer is now one step closer.”
The drilling program will be via the re-entry of the historical Gold Bar Unit 2 well, which has been located and found to be in good condition and will be via a work over rig, which is smaller and truck mounted compared to a rig used to drill a new hole.
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During the drilling program brine will be collected for processing in a bench-top plant enabling first lithium carbonate to be produced in April 2018.
Anson then plans to progress to an in-field pilot plant on 15 acres of industrial land.
The company has applied to the State of Utah School and Institutional Trust Lands Administration to lease the land.
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The bench-top test work program is fully funded following a placement to Zhongfan Group, a privately owned, large-scale international enterprise group based in Shanghai, China.
Zhongfan and Anson have a memorandum of understanding to work towards a binding agreement for Zhongfan to fund development works at the Paradox project.