Assays from Anson Resources’ (ASX: ASN) Skyline Unit 1 well have revealed up to 193.5 parts per million lithium, which the company claims is a 91% increase on its Cane Creek32-1 well within its flagship Paradox brine project in Utah, US.
Additionally, Anson has noted the lithium, bromine, boron and magnesium concentrations were similar to historic samples taken from the area.
Assays at Skyline were 193.5ppm lithium, 4,427ppm bromine, 163.8ppm boron, 156.4ppm iodine and 13,669ppm magnesium.
This compares to Cane Creek which generated 102ppm lithium, 5,041ppm bromine, 65.3ppm boron, 97ppm iodine and 27,900ppm magnesium.
As well as containing higher lithium grades than Cane Creek, flow rates at Skyline were “significantly higher” than those noted upon re-entry of Cane Creek.
Flow rates for Skyline were 123 barrels per hour compared to Cane Creek which had a rate of 40bbl/h.
Anson claims this supports its theory that the Roberts Rupture and cross-cutting structures act as traps and that brine flow can be facilitated without extraction pumping – reducing operating costs.
“The successful re-entry of Skyline Unit 2 well is a further step forward in establishing a JORC resource and fast-tracking the Paradox brine project into production,” Anson chairman and chief executive officer Bruch Richardson said.
“The increase in grade and higher flow rate at Skyline are expected to have a significant positive impact upon the economics of the Paradox brine project.”
“These improvements as well as the continued high concentrations of iodine and bromine, which are further potential contributors to the economics of the project will be considered in the pre-feasibility study, which will be conducted later this year,” Mr Richardson explained.
He added that the company anticipated lithium grades would improve as exploration closes inon the high-grade historic results at the Long Canyon No 1 well.
“This theory will be further tested at Long Canyon No 2 well where a re-entry program has already commenced.”
The news sent Anson’s share price rocketing in early morning trade before settling at $0.084 mid-morning – up 6.33%.