Anson Resources (ASX: ASN) has received assays back from its recent supersaturated brine flow at the Cane Creek 32-1 well, which revealed the presence of lithium grading up to 142 parts per million.
Earlier this month, Anson reported it had struck the supersaturated brine in an artesian flow while sampling the Cane Creek 32-1 well, which is part of the company’s flagship Paradox lithium brine project in the US.
Artesian flow was discovered 7,170 feet below surface and ran at 25 gallons per minute for six hours until Anson plugged the well. The brine weighed 10.55 pounds per gallon and samples were collected for metallurgical testing.
Assays revealed supersaturated brines with lithium were intercepted within six horizons of the Cane Creek well, with high concentrations of bromine, iodine and magnesium also present in the flow, which could potentially add value to the overall Paradox project.
The 142ppm lithium assay came from Clastic Zone 29 and confirms Anson’s belief it is related to the Roberts Rupture structure. This zone also returned the highest levels of bromine, which graded 12,894ppm and one of the largest concentrations of magnesium at 42,995ppm.
According to Anson, the results are comparable to brine samples from historic wells in the region.
“The results of the Cane Creek sampling program are encouraging and confirm the company’s belief that lithium values increase towards the Long Canyon area where A1 Lithium has recently staked claims,” Anson managing director Bruce Richardson said.
“The next stage of the project development, the bench top test work, can now commence with the bulk sample taken from the lithium-rich free flowing horizon,” Mr Richardson added.
The samples will be processed at the bench top plant to validate earlier studies, which showed lithium carbonate for the battery industry could be produced from the brine.
An exploration program is underway and will continue throughout the year and is due to wind up in December.
Anson hopes to prove up a JORC-compliant resource for incorporation in the feasibility study. In addition to lithium, the feasibility study may be expanded to include the bromine, iodine and magnesium minerals that were present in the brine.
Bromine, iodine and magnesium value
Anson estimates bromine is currently commanding about US$4,500 per tonne, up from US$3,500/t in 2015.
Meanwhile, iodine was estimated to sell for US$20,500/t in 2016. In December last year, the magnesium price was US$2,250/t, which was a fall from a mid-year price of US$2,270.
Lithium claims staked
In addition to advancing exploration at Paradox, Anson has increased its holding in the region after staking an addition three blocks of placer claims.
The claims include Cloud, Cane and Long Canyon South, and are close to oil wells with historic lithium values and the Roberts Rupture structure.
Lithium grading between 81ppm and 174ppm was identified in historic data at the Cane and Long Canyon South claims.
Anson’s share price was up more than 3% to A$0.067 in mid-afternoon trade.