Emerging lithium producer Anson to explore old oil and gas well for lithium brine

Anson Resources ASX ASN Cane Creek 32-1 well lithium brine
Anson Resources' newly acquired Cane Creek 32-1 Well.

As it advances towards first lithium carbonate production, Anson Resources (ASX: ASN) has finalised the acquisition of the past producing Cane Creek 32-1 oil and gas well, which it believes is prospective for lithium and will be incorporated into the company’s flagship Paradox lithium brine project in the United States.

The company anticipates lithium brine sampling will begin from the well in early March, as soon as the oil equipment has been removed.

Anson stated clastic levels with brine had been identified within the well, and the company will target the clastic 31 where historical assays have returned high lithium grades.

According to Anson, it’s a “straight forward” procedure to enter the well. It will plug off the Cane Creek oil and gas zone to focus on the upper clastic regions for lithium brine content.

Due to the well’s proximity to Anson’s other exploration target Gold Bar Unit 2 well and infrastructure, the company is looking to use the newly acquired asset as a possible production base.

Cane Creek is 5km from Anson’s Gold Bar well where lithium brine sampling was undertaken in January.

“The next stage of Anson’s exploration program, the sampling of brines at Cane Creek 32-1, is a key step forward in determining the geology of the Paradox Basin project and will provide us with more information of how best to produce lithium from the super saturated brines,” Anson managing director Bruce Richardson said.

A larger exploration program is underway across the Paradox project to develop a JORC-compliant resource. The current program is due to wind up in December.

Maiden lithium carbonate production imminent

Meanwhile, Anson has a three-stage metallurgical test work program underway, which includes bench-top processing of a 500-litre brine sample.

As part of the program, Anson plans to produce its first lithium carbonate product from its Paradox brine in April.

To progressing its production plans, Anson has lodged an application with the Utah regulatory authorities to build an in-field pilot plant on 15 acres of industrial land at Paradox to produce its own lithium carbonate, so it can distribute its product to potential offtake partners for testing.

At this stage, Anson hopes to commission the pilot plant in June 2019.

By mid-afternoon trade, shares in Anson were up more than 2% to A$0.20.

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