On 25 September 2018, Anson Resources Limited (ASX: ASN) announced that its wholly owned Utah based subsidiary A1 Lithium has increased its earlier announced exploration target by 30% to a new estimate of 85 to 171 M tonnes of brine. Following this announcement, the company’s share price increased by 3.529% as on 25 September 2018.
The increase in the exploration target is due to the staking of additional claims in the area, which have increased to 1,317 claims from earlier 938 claims. The total area of the project is increased to 11,373 hectares which makes A1 lithium major claim holder in the area with a large contiguous block over the major geological structures. As there has been insufficient exploration undertaken on the project to name a mineral resource, the exploration Target of the A1 Lithium is considered conceptual in nature. It is not certain that future exploration will result in a mineral resource.
This increase in the exploration target will improve the economics of the Paradox Lithium Project. It is very important that the area where this additional volume has been calculated includes the area around the Long Canyon No 1 and White Cloud No 2 wells where historic assays recorded high concentrations of lithium.
As per the company’s announcement on 25 September 2018, the trading in the securities of the entity will temporarily be paused till a further announcement by the company.
In the quarter end 30 June 2018, the cash used in operating activities was $1.15 million and this was $3.68 million in the previous year. The company did not purchase any property, plant and equipment in this quarter. By the end of June quarter, the company was having cash and cash equivalent of $1.67 million. As per recent quarterly report, Paradox Lithium Brine project now consists of 983 placers for a total of 19587 acres. The claims contain numerous oil wells which are nearby to wells which have historically recorded lithium valves in them. At the end of the June quarter, the company raised $2.5 million through share placement at $0.11 per share. The total number of shares which are issued are 454,614,190.
In the past six months, Anson’s share price increased by 54.55% from $0.055 to $0.085 as on 24 September 2018. ASN’s share traded at $0.088 at a market capitalization of $42.02 million as on 25 September 2019 (AEST 4:00 PM).
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