Anson Resources Ltd (ASX:ASN) will consider drilling of the Long Canyon A1 site as part of proving a JORC-compliant lithium resource at its Paradox project in the US state of Utah.
This option is now available to the company after its Utah subsidiary A1 Lithium was granted a Notice of Intent to drill the well by the Bureau of Land Management (BLM).
As well as assisting in resource calculations by the end of 2018, Long Canyon A1 (LC A1) is also being considered as a potential production well.
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Anson’s managing director Bruce Richardson said: “Approval of the LC A1 application by the BLM provides the company with an opportunity to drill an exploration well to confirm the historical assay for Long Canyon No 1 of 500ppm.
“It also provides a location for a future production well and is a further step forward in the development of the Paradox Lithium Project.
“The company remains on track to defining a JORC-compliant resource by the end of 2018.”
LC A1 drill site is 800 metres southeast of Robert’s Rupture, a geological feature considered to demonstrate the extensive fracturing resulting in the formation of brine traps concentrating minerals, including lithium.
The feature is also considered a contributor to the artesian flow of the lithium-rich brine to surface. In addition, the drill site is about 1.3 kilometres from the Long Canyon No 1 well, northwest of Robert’s Rupture, where historical assays indicate lithium content of 500ppm.
Archaeological, environmental and site surveys were conducted over the proposed area in May
2018 with these reports provided to the BLM as part of the approval process.
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The LC A1 well has been approved to drill to 7,050 feet to sample the lithium and other mineral concentrations, artesian flow, pressure and temperature recorded on Clastic Zone 31.
These were recorded when the Long Canyon No 1 and White Cloud No 2 wells were drilled.
Should Anson elect to drill the well, brines from other clastic levels will be assayed for lithium and other minerals as it drills down to Clastic Zone 31.
Possible production well
If the assay results are positive the company could consider this well for production of brine at a later date.
Since the NOI was lodged the company has acquired additional claims which provide the opportunity for re-entry, joint venture drilling and drilling in a new location.
These may assist Anson in achieving its objective of a JORC resource by the end of 2018.
All of these options are under consideration by the company.