Anson Resources boosts lithium brine potential at Paradox project

Anson Resources ASX ASN lithium brine Paradox project

Anson Resources (ASX: ASN) announced today re-testing of historic samples taken from its flagship Paradox brine lithium project in the United States had revealed higher porosity in the host rock than previously thought, resulting in greater brine potential.

Historic analysis revealed porosity of 17.5%; however, Anson’s recent petrographic test work put the porosity in the ideal 30-40% range.

The greater the porosity (or gaps) in host rocks, the better the rock’s potential for hosting brine, and subsequently, lithium mineralisation.

Anson is exploring for lithium rich brines within the project area, with historical samples ranging up to 1,700 parts per million (ppm) recorded within 1km of Anson’s Paradox project.

According to Anson, the 1,700ppm lithium concentrations are comparable to the highest lithium brine grades in the world.

The company is targeting up to 40 million barrels of brine grading between 500 and 1,700 parts per million lithium for the Clastic Zone 31. However, other zones are known to contain brines.

At Clastic Zone 31 the brine has been identified about 1,800m below surface with host rock consisting of shale, anhydrite and dolomite. Historic drill holes resulted in brines flowing to the surface.

The company has been fast-tracking exploration at Paradox since March, with the project located 11 hours by road from electric car manufacturer Tesla’s giga factory.

In late September, Anson reported it was in discussions with several interested offtake partners in China.

The discussions resulted in three memorandum of understanding agreements with Link Data Technologies in Beijing, Far East First New Energy Co in Jiangxi and CBAK Power Battery Co in Dalian.

About 49% of the world’s lithium source comes from lithium brine projects which are more cost-effective and faster to develop.

Lithium brine deposits occur in salt flats that are arid and flat.

Anson’s shares were at A$0.15 in mid-afternoon trade, up more than 36% on yesterday’s closing price of A$0.11.

Since late October, the company’s stock price has surged 275% from a low of A$0.04 to today’s A$0.15 price.

Lorna has more than 10 years’ experience as a finance journalist and editor. She has written for an array of industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has covered a myriad of small and large cap ASX and dual-listed stocks.