The West Perth-based Anson Resources Limited (ASX: ASN) announced today on the first assays (Assay- Testing of a metal (or ore) to determine its constituents and quality) of the free-flowing brine intercepted during the recent drilling at the Skyline Unit 1 well, at its Paradox Brine Project, located in Utah.
Anson assays report 91% higher lithium grades at 193.5ppm, as compared to the lithium grade of the brine from Anson’s Cane Creek 32-1 well. The company reported that the flow rates at Skyline Unit1 were significantly higher than Anson experienced during the re-entry of Cane Creek 32-1 well. This validated the company’s theory that the fracturing by the geological structures in the central and southern area of Anson’s claims will assist with brine flow without the need for extraction pumping which is significant for project economics.
Also, the company stated that the higher-grade Li assays and higher flow rates from Clastic Zone 31 validated the company’s interpretation that Roberts Rupture and the cross-cutting structures act as “traps” and concentrate the lithium in the central and southern areas of Anson’s project area. The company believes that these structures are geologically interpreted to be causing high pressure resulting in the artesian flow of the brine to surface.
The company reported the following onsite test work: Temperature, pH, dissolved oxygen, Reduction-oxidation potential, Specific electrical conductance, and Total dissolved solids. The results obtained to be used to fast track the estimate of JORC Resource.
The company in its release also highlighted that the high grades of boron, bromine, and iodine might provide a boost to the financial contribution to the Paradox Brine project. The Company expects Bromine and iodine to be easily extracted in the proposed processing plant selected to produce lithium.
Commenting on the results, Executive Chairman and CEO of Anson, Bruce Richardson stated that, the increase in grade and higher flow rate at Skyline are expected to have major positive impact upon the economics of the Paradox Brine Project. The CEO expressed satisfaction over the company’s theory on lithium grade getting validated by these results.
On 5th March 2019, the company announced the ASX, about the extension of use rights of the Utah State lease for Potash and Mineral salts and surface land use. Also, the company received permission to use minerals extracted from outside the area covered by the state lease. The lease is for a 10-year period with possible extensions. The company also informed the exchange that it had commenced the work to modify existing infrastructure at the Cane Creek well site.
The stock has been volatile in the recent past. The stock has moved up by 17.91%, and moved down by 7.06%, in the past three months and one month respectively (As on 08 March 2019).
The shares of ASN were trading at A$0.082 (as at Mon 11 Mar 19 03:58 PM) on ASX, up by 3.797%,
Anson Resources Ltd (ASX: ASN) market capitalization stands at circa $39.13 million. The Stock has noted the 52-week high price of A$0.195 and 52-week low price of A$0.037. As per the latest ASX declaration, the company’s EPS stood at -0.013 AUD.
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