Anson Resources Ltd (ASX:ASN) will start sampling brine for lithium content this week at Cane Creek 32-1 well on its Paradox project in the Lithium Four Corners area of the US.
A drilling contractor has been appointed and the work-over rig is expected to arrive on site by Wednesday.
The sampling program of five clastic zones is expected to be completed by the end of March 2018.
Samples will be assayed for lithium, magnesium, bromide, iodine and boron.
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Bruce Richardson, managing director, said: “Anson has worked quickly to acquire and obtain approval from the Government of Utah to conduct a sampling program at Cane Creek 32-1 well.
“The planned short sampling period will enable the company to include the sample from Cane Creek in the bench-top test work program.
“This can be used to produce Anson’s first lithium carbonate in quarter two of 2018.”
READ: Anson Resources to start brine sampling for lithium at newly acquired well
The program only requires a work over of the Cane Creek well as the hole is still open and not plugged and abandoned.
Cane Creek 32-1 Well was drilled by Fidelity Oil and Gas in 2014 and has been an intermittent producer of oil and gas.
Oil extraction equipment removed
Anson has removed the oil extraction equipment from the recently acquired well, which is 5 kilometres from the company’s Gold Bar Unit 2 well where sampling has been completed.
The Paradox project is in a prolific lithium region of Utah.
Clastic zones 17, 19, 29, 31 and 33 will be sampled with zone 31 being the primary target owing to high grades of lithium being recorded in historical assay results.
Samples will be collected and sent for assay at laboratories in Nevada and this is expected to be completed by mid-April.
Bulk sample will also be collected
A bulk sample will also be collected in IBC containers from all clastic zones and stored on site for sampling.
These bulk samples can also be included in the company’s bench-top plant work program.
Brine sampling is part of the exploration program required to prove a JORC-compliant resource with the program to continue until December 2018.
The JORC resource is required for a feasibility study that Anson needs to complete to obtain funding for a large-scale production plant.
Further exploration will need to be completed and Anson has started planning these sampling programs.