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Anson Resources lodges re-entry application for two wells at Paradox Lithium Project

The company is seeking to estimate a JORC-compliant lithium resource at the project in Utah.
County road at Anson's Paradox Lithium Project
The county road to the Skyline Unit 1 drill pad at Anson’s Paradox project

Anson Resources Ltd (ASX:ASN) has lodged an application to re-enter two existing wells at the Paradox Lithium Project in the US state of Utah as it aims to estimate JORC-compliant lithium resources.

A Notice of Intent (NOI) application has been submitted by wholly-owned Utah-based subsidiary A1 Lithium to the Bureau of Land Management (BLM).

It covers the Skyline Unit 1 and Long Canyon No2 wells and drilling can begin immediately after the NOI is approved, which is expected later this quarter.

Another step on estimate ‘fast-track’

Anson’s managing director Bruce Richardson said, “The submission of the NOI for these two wells, which were only staked by the company in September, is another step in fast-tracking the Paradox project into JORC resource estimation as the company progresses to a PFS.”

Plan showing the proposed drill sites.

These targets have been prioritised based on proximity to the Roberts Rupture major geological structure, the Cane Creek Anticline and cross-cutting structures in the area.

Robert’s Rupture is considered to demonstrate the extensive fracturing resulting in the formation of brine traps concentrating minerals, including lithium.

It is also a contributor to the artesian flow of the lithium-rich brine to the surface.

READ: Anson Resources lifts Paradox lithium exploration target 30% after staking new claims

The two wells are also close to the Long Canyon No1 and the White Cloud No2 wells which contain recorded lithium values of 500ppm and 1700ppm respectively.

Proposed re-entry drill hole co-ordinates.

Skyline Unit 1 well drill site is 1.4 kilometres south of the Cane Creek 32-1 well and west of Robert’s Rupture while Long Canyon No2 site is about 800 metres southeast of the Long Canyon No1 site.

Anson said that the two re-entry wells would be perforated and sampled at Clastic Zones 17, 19, 29, 31 and 33 for lithium and other mineral concentrations.

Measurements would be taken for flow rates, pressure and temperature, if practical.

READ: Anson Resources aims to re-enter three wells as part of fast-track lithium strategy

SRK confirmed in its Gap Analysis report that these five horizons should be initially targeted.

Richardson said: “SRK has confirmed that the company is on the correct pathway to achieving a JORC resource estimation.

Re-entry costs much lower

“Although there has been a short delay with the exploration program, while new re-entry targets have been secured, the timetable for completing a JORC resource estimate has been significantly reduced, as has the projected cost, as re-entry costs are much lower than new drilling.

“In addition, the new re-entry targets are closer to the higher historical grades and main geological features which provides confidence in the outcomes that will be achieved.

“This exploration drilling program is expected to be completed in Q1 2019.”

READ: Anson Resources shares surge on producing first lithium hydroxide product

Anson’s first vial of lithium hydroxide product.

Additional horizons can be sampled at the time of drilling, based on new geophysical logs obtained prior to perforating the collar pipe.

Research has shown that when drilling the Skyline Unit 1 well there was flow of brine from some clastic horizons noted.

These flows probably correlate with flows recorded from the Long Canyon No1 and White Cloud No2 wells.

Archaeological, environmental and site surveys carried out over the proposed areas have indicated that there are no issues that will affect the drilling timetable.

Access via existing roads

Access to the wells is via existing roads which pass through the claims.

The county roads are well-maintained while tracks will only need minor upgrading, thereby enabling an exploration program to begin once government approvals have been granted.

The Long Canyon No2 drill pad site.

Drill pads of the selected wells will only require minimal work as little rehabilitation has been previously carried out.

READ: Anson Resources makes appointments to address skills gap in board

At a later date, Anson also plans to drill the Matthew Fed 1, Matthew Fed 2, Coors USA and Big Flat Unit 7 wells.

Future proposed re-entry drill holes.

These additional holes are expected to result in an immediate increase in the size of the JORC resource.

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