Anson Resources gets green light to start drilling at lithium brine project

Anson Resources ASX ASN drilling Paradox lithium brine project

Lithium explorer Anson Resources (ASX: ASN) has secured all necessary permits to begin drilling at its Paradox lithium brine project in the United States.

The final green light came from the US Bureau of Land Management’s last approval, with Anson planning to start drilling before the end of the year.

As part of its final approval from Bureau of Land Management, Anson was required to submit environmental, cultural and paleontological studies for its Gold Bar Unit 2 well and four other targets.

Anson’s drill program will re-enter the Gold Bar Unit 2 well to identify lithium.

The drilling program comes hot on the heels of yesterday’s announcement regarding Anson’s share placement with Zhongfan Group.

Due for completion on 20 December, Anson will issue 20 million shares to Zhongfan at A$0.088 each to raise A$1.76 million.

Late last month, Anson issued 20 million shares to Zhongfan at A$0.03 each to raise capital to create bench-top pilot plant to facilitate development of an in-field pilot plant to investigate producing lithium carbonate equivalent directly from lithium brine taken from the exploration program at Paradox.

The duo then inked a memorandum of understanding (MoU) regarding Zhongfan funding further development at the Paradox.

Based in China’s major city Shanghai, Zhongfan is an integrated company operating in resource development, commodity trading and technology development. The company’s annual turnover sits at more than US$2 billion.

“Anson remains confident that as planning of the next phases of exploration and development continue, further funding will be provided by Zhongfan under the MoU,” Anson managing director Bruce Richardson said.

Anson also has three other MoUs in place with interested parties in China: Link Data Technologies in Beijing, Far East First New Energy Co in Jiangxi and CBAK Power Battery Co in Dalian.

Funds from this latest placement will go towards the drilling campaign and development of a JORC-compliant resource for Paradox which encompasses 23.3 square kilometres of landholding.

Historical exploration in proximity to the project area has produced up to 1,700 parts per million lithium.

Other explorers in the region include: Voltaic Minerals, MGX, American Potash, Liberty One, US Cobalt, Power Metals, and Standard Lithium.

Anson shares were up more than 7% in early morning trade at A$0.14.

    Join Small Caps News

    Get notified of the latest news, events, and stock alerts.