Anson Resources Ltd (ASX:ASN) will locate a pilot plant for the Paradox Lithium Project in the US state of Utah on an existing well pad, which will reduce infrastructure development, time and costs.
A pilot plant at the Cane Creek 32-1 well site will incorporate Lilac Solutions’ ion exchange process to extract lithium without the use of evaporation ponds.
The design and construction process for the plant has commenced.
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Anson’s managing director Bruce Richardson said: “Finalising the location of the pilot plant is a further step to fast-tracking the production of lithium products for testing by prospective offtake partners and progressing towards a pre-feasibility study.
“Locating the pilot plant at the Cane Creek 32-1 pad takes advantage of existing infrastructure, providing cost advantages for the Paradox Lithium Project.
“Strategic location”
“Strategically located in the centre of the project claims with artesian brine flow from an existing well, road access, power and with an existing construction ready pad, the company has been successful in obtaining approval for the location of the pilot plant.
“This has been done in a comparatively short timeframe, demonstrating the company’s committed objective of bringing the project into production quickly while maintaining a focus on cost minimisation,” he said.
Shares were up 9% to 9.9 cents in early trade.
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Finalising the location follows granting of State leases for Oil, Gas and Hydrocarbons (480 acres) and Mineral Salts and Potash Salts (640 acres) covering the Cane Creek 32-1 pad area.
These were granted by the State of Utah School and Institutional Trust Lands Administration (SITLA).
Anson was able to apply for the mineral salts lease because of the earlier purchase of the oil and gas lease.
Plan showing the SITLA leases and the Cane Creek 32-1 pad.
The granting of the lithium and salt lease is significant as it not only allows Anson to produce salts of lithium, boron, bromine, iodine, magnesium, sodium and calcium as well as potassium salts but also enables it to build a pilot plant on the existing oil well pad.
Construction-ready pad
This will save valuable time in advancing the project while significant costs will be also saved by utilising the existing well pad which is construction-ready.
The fenced Cane Creek 32-1 well pad covers an area of 10.6 acres, which is considered more than adequate for the planned pilot plant.
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In-situ buildings can be erected to contain the pilot plant equipment, which will allow the heated free flowing brine to run directly to the pilot plant, another cost-saving feature.
This strategically important oil and gas lease contains the Cane Creek 32-1 oil well where artesian flow of brine occurred during the recent sampling program.
Oil and gas possible energy source
Owning the lease enables Anson to extract the oil and gas which could possibly be used in future production processing, providing a low-cost source of energy for on-site power generation.
Oil and gas have previously been produced from the Cane Creek 32-1 well and it is possible to extract oil and gas and lithium brine from the same well from different clastic zones using separate tubing.
Cognisant of this opportunity with the granting of the oil and gas lease when determining the location of the pilot plant, the company has maintained the integrity of the oil and gas production facilities for possible future use.