Anson Resources Ltd (ASX:ASN) will start brine sampling for lithium early in March from the newly acquired Cane Creek 32-1 oil well at its Paradox Lithium Project in the U.S.
This well will provide Anson with an opportunity to collect additional samples and geological data to provide an understanding of the structure of the Paradox basin.
It is also expected to help determine what controls if any, the structures have on the concentrations of lithium.
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Bruce Richardson, managing director, said: “The next stage of Anson’s exploration program, the sampling of brines at Cane Creek 32-1, is a key step forward in determining the geology of the Paradox Basin project.
“It will provide us with more information of how best to produce lithium from the super-saturated brines.”
In Lithium Four Corners area
The Paradox project is in the Lithium Four Corners area of the state of Utah and in proximity to the town of Moab.
The Paradox Basin is in Utah's Lithium Four Corners area.
Lithium values of up to 1,700ppm have historically been recorded in close proximity to Anson’s claim area.
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Anson has completed the acquisition of the Cane Creek 32-1 well and associated oil and gas lease, which is 5 kilometres from the company’s Gold Bar Unit #2 well.
The company completed extracting super saturated brines from Gold Bar Unit #2 well in late January 2018 and is awaiting assay results.
After removing the oil extraction equipment from Cane Creek 32-1, Anson will begin sampling the known clastic levels that contain brine.
This will include its primary target Clastic 31 where high grades of lithium have been recorded in historical assay results.
Suitable rigs in the area
Anson expects to begin this work in early March 2018 as there are suitable rigs available in the area.
An oil and gas well has been in production until recently and remains ‘open’ with no plugs installed to abandon the well.
Cane Creek 32-1 Well was drilled by Fidelity Oil and Gas in 2014 and has been an intermittent producer of oil and gas.
The procedure to enter the well is straight-forward and Anson intends plugging off the Cane Creek zone to evaluate contents of upper clastic zones for the presence of lithium-rich brines.
Anson’s plans to enter the open well, perforate the well casing at the depths where brine has been recorded, extract samples and send them to the laboratory for assaying.
Possible production base
The strategically located well with surrounding supporting infrastructure will be assessed as a possible production base once sampling results are known.
This information, along with geological interpretation from Gold Bar Unit #2 sampling, will be used in conjunction with future sampling information to determine the location of production facilities.