Anson Resources Ltd (ASX:ASN) is reviewing an early cash flow opportunity from a modular bromine plant at its flagship Paradox Brine Project in Utah, US.
Subject to the current bromine test work being completed, Anson believes this is the next logical step.
Cash flow generated from this modular plant could be used to fund the planned lithium pilot plant and the commercial sized bromine-lithium plant.
Notably, the development of a modular bromine plant will also alleviate the need to pre-treat the brine with chemicals in the lithium pilot plant and as a result save development costs.
Test work with cost estimates underway
Earlier this year, initial test work showed bromine recovery in excess of 90% in bench-scale test work.
With bench-scale bromine extraction proved, follow-up bromine extraction test work has commenced to estimate the operating and capital costs for an industrial scale modular plant.
This work, which includes piloting, is expected to be completed later this year, removing the need for an on-site pilot plant.
Benefits of a modular plant
By designing the plant in modules cash flow can be generated to fund future bromine production expansions as well as the lithium pilot plant.
The data generated from the current test work will also be feed into a preliminary economic assessment (PEA) and/or pre-feasibility study (PFS).
The follow-up bromine test work underway is being performed by De Dietrich Process Systems, a leading global provider of process equipment, engineered systems and process solutions.
De Dietrich is a specialist in bromine processing and plants
De Dietrich has extensive experience in building bromine plants having completed 31 plants over the past 50 years.
According to De Dietrich’s website, the production of bromine from brines becomes economically advantageous when the bromide concentration is more than 2,500ppm.
Bromine grades of up to 6,595 ppm at Paradox
Anson’s exploration programs to date show that the bromine concentration in the clastic zone 31 horizon is consistent through the whole project area with grades ranging from around 3,000ppm to 6,000 ppm bromine.
The current price for bromine is up to around US$7,000 per tonne and the market size is estimated at US$2 billion and growing at a 9% CAGR up to 2023.
Anson has intersected high bromine concentrations in clastic zones 17, 19, 29, 31, 33 and 35 at Gold Bar Unit 2 and Cane Creek 32-1 wells.
Sampling of the brine in clastic zones 17 and 29 is to be carried out later this month at Long Canyon No. 2 and Skyline Unit 1 wells and will include testing for bromine.