Anson Resources Ltd (ASX:ASN) is trading higher after delivering another major upgrade to the mineral resource estimate (MRE) for its Paradox Lithium Project in Utah in the United States, less than three months after it announced a substantial upgrade to the project’s resources.
The latest MRE follows the completion of drilling and sampling at the Cane Creek 32-1 well, and will be incorporated into the detailed feasibility study (DFS) by global engineering group Worley.
Paradox now hosts 1,037,900 tonnes of lithium carbonate equivalent (LCE) and 5,274,900 tonnes of bromine, including an indicated resource of 346,109 tonnes of LCE and 1.84 million tonnes of bromine and an inferred resource of 691,800 tonnes of LCE and almost 3.435 million tonnes of bromine.
The upgraded MRE represents:
- a 24% increase on the previous lithium resource, including a 31% increase in the indicated resource on the previous resource; and
- a 33% increase on the previous bromine resource.
Significant amounts of other minerals including boron (boric acid, H3BO3) and iodine (I2) have also been estimated.
Shares have been as much as 9.53% higher intraday to A$0.345 while the company's market cap is approximately A$381.43 million.
Plan shows the mineral resource classification for the Clastic Zone 31 horizon.
Western expansion
Anson plans to commence its ‘Western Expansion’ strategy by re-entering historic drill holes in the western areas of the project recently approved by the Department of the Interior, Bureau of Land Management.
This may result in a significant increase in the block model grades and ultimately, the product tonnages for the clastic zones, and also the new Mississippian units, where there have been few previously recorded assays.
The company intends to include the results of drilling from both these target areas in future MRE upgrades for Paradox.
Further drilling programs in the ‘Western Expansion’ strategy will seek to define additional indicated resources with the aim of significantly increasing the indicated-to-inferred resource ratio.
Plan showing the oil wells that were drilled into the Mississippian units.
New discovery
The new Mississippian units in the western extent of the project area are a new discovery by Anson, which presents the opportunity to drill and sample new zones beyond the company’s core strategy of re-entering existing wells to define mineral resources.
Anson anticipates to deliver further resource upgrades for Paradox after it undertakes drilling and sampling of the newly discovered area.