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18 July 2022 | ASX ANNOUNCEMENT |
ASX: ASN, ASNOC, ASNOD | |
OTC: ANSNF |
Anson Delivers Additional High Lithium Results in Drilling at
Paradox Lithium Project
High Li & Br Reported in Zones Outside Existing JORC Resource
Highlights:
- Drilling at the Long Canyon No. 2 well has delivered new, high concentrations of Lithium and Bromine at Paradox Lithium Project in Utah, USA
- New, high Lithium (Li) and Bromine (Br) results comes from the Clastic Zones at Long Canyon No. 2:
- 97ppm Li, 882ppm Br in Clastic Zone 33 (11ft thick)
- 240ppm Li, 4,115ppm Br in Clastic Zone 31 (18ft thick) o 111ppm Li, 4,112ppm Br in Clastic Zone 29 (18ft thick) o 111ppm Li, 4,022ppm Br in Clastic Zone 19 (38ft thick) o 114ppm Li, 4,092ppm Br in Clastic Zone 17 (46ft thick)
- The supersaturated brines are similar to those of the previously sampled Clastic Zones from other wells included in the existing Paradox JORC Resource
- The assays from the Clastic Zones are not part of the existing Paradox Resource estimate and will be included in the upcoming Resource upgrade
- Anson plans to confirm a major Resource upgrade on completion of its current drilling campaign at the Cane Creek 32-1 and Long Canyon No. 2 wells
- There is also scope for further Resource expansion via targeted drilling in the western areas of the Paradox Project
- The upgraded Resource will be included in the Definitive Feasibility Study currently being completed
Anson Resources Limited (ASX: ASN, ASNOC, ASNOD) (Anson or the Company) is pleased to announce that high concentrations of lithium and bromine have been reported from the recent drilling at the Long Canyon No. 2 well at the Company's Paradox Lithium Project in Utah, USA (the Project).
These additional lithium and bromine values come from the Clastic Zones 17, 19, 29, 31 and 33 at Long Canyon No. 2, all of these zones have not been previously included in the existing JORC Resource estimate at the Project.
It is anticipated these additional assay results will result in an increase in the Project's Indicated and Inferred Resources at the southern end of the Project area (see Figure 1).
Anson Resources Limited
Level 1, 35 Outram Street, West Perth, WA 6005, Australia
Tel: +61 478 491 355
ABN: 46 136 636 005 www.ansonresources.com
Assays for the Clastic Zones at the Long Canyon No. 2 well are shown in Table 1, along with | |||||||||||||||||||
assays from the Cane Creek and Skyline wells. Anson plan to use these results from all of the | |||||||||||||||||||
Clastic Zone horizons and the Mississippian Units to upgrade the Project's existing JORC | |||||||||||||||||||
Resource estimate (see ASX Announcement 11 May 2020). | |||||||||||||||||||
only | Clastic Zone | Long Canyon Unit 2 | Skyline Unit 1 | Cane Creek 32-1 | |||||||||||||||
Thickness | Li | Br | Thickness | Li | Br | Thickness | Li | Br | |||||||||||
(ft) | (ppm) | (ppm) | (ft) | (ppm) | (ppm) | (ft) | (ppm) | (ppm) | |||||||||||
33 | 11 | 96.4 | 881.7 | 11 | NS | NS | 40 | 51 | 7,277 | ||||||||||
31 | 18 | 240 | 4,115 | 25 | 194 | 4,427 | 12 | 52 | 4,450 | ||||||||||
29 | 18 | 111 | 4,112 | 20 | 164 | 3,508 | 22 | 101 | 5,041 | ||||||||||
19 | 38 | 111 | 4,022 | 38 | 146 | 3,462 | 32 | 68 | 3,345 | ||||||||||
17 | 46 | 114 | 4,292 | 32 | 61 | 2,515 | 34 | 62 | 3,210 | ||||||||||
For personaluse | Table 1: The assay results obtained for the Clastic Zones sampled in the Long Canyon Unit 2 re-entry. | ||||||||||||||||||
Figure 1: Plan showing the AOI for Indicated and Inferred for the additional Clastic zones that will result from
the assay results obtained from the Long Canyon Unit 2 re-entry.
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Additional Resource Expansion Potential
Anson's resource expansion drilling campaign is focused on delivering a significant resource upgrade at the Project and incorporates separate "Eastern" and "Western" expansion strategies.
The completion of the current phase of drilling at the Cane Creek 32-1 and Long Canyon No. 2 wells will constitute the completion in full of the "Eastern" component of the Resource expansion strategy.
The Company then plans to further expand the Paradox Resource by re-entering historic holes in the western areas of the Project, which are currently only classified as Inferred Resources or an Exploration Target (see Figure 1).
The execution of the "Western" expansion strategy has the potential to deliver a significant further increase in Resource tonnages and grades, from the additional Clastic Zones at the wells in this area, where there are no recorded assays.
Commentary - High-Pressure and Flow Rates at Shallow Depth
Anson recently confirmed that further test work on the Long Canyon No. 2 and Cane Creek 32-1 wells had delivered continued high pressure and increased high flow rates (see ASX announcement 13 July 2022). This is a highly positive outcome that may have positive impacts on the economics of the Project.
Anson is in a unique, and ideal location for brine extraction at the intersection of Robert's Rupture and the Cane Creek Anticline, at the Project. Robert's Rupture provides vertical porosity, and the Cane Creek Anticline results a shallower depth to the target extraction horizon.
The three factors; high pressure, porosity (both horizontal and vertical) and shallow depth are key attributes of the Project and are not present anywhere else in the area. In combination, they provide strong indicators of low extraction costs and beneficial ESG outcomes.
The wells Anson has re-entered have delivered artesian flow from the Clastic Zone 31 horizon (see previous ASX announcements) due to the constant higher pressures (see Table 1) and the porosities of this clastic zone.
Background and Rationale
The thicknesses of the Clastic Zones vary between layers but are consistent across the project area for a particular zone (Table 2). The Clastic Zones sampled in this program have greater thicknesses than the Clastic Zone 31 in the existing Resource.
The brine zones (clastic horizons) in the project area have not been cored, but it has been adequately sampled and logged. The Clastic Zones contain the following from top to bottom:
- Anhydite;
- Black Shale;
- Dolomite; and
- Anhydrite.
The dolomite is quite porous and permeable, whereas the anhydrite and black shale is crushed and broken. When the zones containing brine are intersected during drilling, artesian flow begins which indicates vertical porosity, permeability and that communication exists between the layers.
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The fractured Clastic Zones form an excellent reservoir for supersaturated brines. At the extraction point, when brine is removed, salt will flow into the voids from where the brine has been removed due to these parameters. This may help maintain high reservoir pressure and assist in a high ultimate recovery of brine.
Anson has located the extraction well sites in an ideal position, based on the regional structures and the resultant high pressures, porosity and permeability (see ASX announcement 30 May 2022). This is designed to deliver artesian flow of the brine to the surface with no pumping required.
This announcement has been authorised for release by the Executive Chairman and CEO.
ENDS | |
For further information please contact: | |
Bruce Richardson | Media and Investor Relations |
Executive Chairman and CEO | James Moses, Mandate Corporate |
E: info@ansonresources.com | E: james@mandatecorporate.com.au |
Ph: +61 478 491 355 | Ph: +61 420 991 574 |
www.ansonresources.com | |
Follow us on Twitter @anson_ir |
About Anson Resources Ltd
Anson Resources (ASX: ASN) is an ASX-listed junior mineral resources company, with a portfolio of minerals projects in key demand-driven commodities. Its core asset is the Paradox Lithium- Brine Project in Utah, in the USA. Anson is focused on developing the Paradox Project into a significant lithium producing operation. The Company's goal is to create long-term shareholder value through the discovery, acquisition and development of natural resources that meet the demand of tomorrow's new energy and technology markets.
Forward Looking Statements: Statements regarding plans with respect to Anson's mineral projects are forward looking statements. There can be no assurance that Anson's plans for development of its projects will proceed as expected and there can be no assurance that Anson will be able to confirm the presence of mineral deposits, that mineralisation may prove to be economic or that a project will be developed.
Competent Person's Statement 1: The information in this announcement that relates to exploration results and geology is based on information compiled and/or reviewed by Mr Greg Knox, a member in good standing of the Australasian Institute of Mining and Metallurgy. Mr Knox is a geologist who has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity being undertaken to qualify as a "Competent Person", as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion in this report of the matters based on information in the form and context in which they appear. Mr Knox is a director of Anson and a consultant to Anson.
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JORC CODE 2012 "TABLE 1" REPORT
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria | JORC Code Explanation | Commentary | |||||||||
Sampling techniques | • | Nature and quality of sampling (e.g. cut channels, random chips, or specific | • Historical oil wells (Gold Bar Unit #2, Cane Creek | ||||||||
specialized industry standard measurement | tools | appropriate to the | #32-1-25-20, Skyline Unit 1, and Long Canyon Unit 2) were utilized to access brine | ||||||||
minerals under | investigation, such as down hole gamma | sondes, or | bearing horizons for sampling. Geophysical logging was completed to determine | ||||||||
handheld XRF instruments, etc.). These examples should not be taken as | geologic relationships and guide casing perforation. Once perforated, a downhole | ||||||||||
limiting the broad meaning of sampling. | packer system was utilized to isolate individual clastic zones (production intervals) for | ||||||||||
• | Include reference to measures taken to ensure sample representivity and | sampling. Perforation and packer isolated sampling moved from bottom to top to allow | |||||||||
the appropriate calibration of any measurement | tools or systems used. | • | for the use of a single element packer. | ||||||||
• | Aspects of the determination of mineralization that are Material to the Public | Brine fluid samples were discharged from each sample interval to large 1,000 L plastic | |||||||||
Report. | totes. Samples were drawn from these totes to provide representative samples of the | ||||||||||
• | In cases where 'industry standard' work has | been done this would be | • | complete volume sampled at each production interval. | |||||||
relatively simple | (e.g. 'reverse circulation drilling was used to | obtain 1 m | The brine samples were collected in clean plastic bottles. Each bottle was marked with | ||||||||
samples from which 3 kg was pulverized to produce a 30 g charge for fire | the location, sample interval, date and time of collection. | ||||||||||
assay'). In other cases more explanation may be required, such as where | |||||||||||
there is | coarse | gold that has inherent | sampling | problems. Unusual | |||||||
commodities or mineralization types (e.g. submarine nodules) may warrant | |||||||||||
disclosure of detailed information. | |||||||||||
Drilling Techniques | • | Drill type (e.g. core, reverse circulation, | open-hole hammer, rotary air | • | Standard mud rotary drilling was utilized to re-enter historical oil wells. The wells had | ||||||
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or | been previously plugged and abandoned in some cases, requiring drill out of cement | ||||||||||
standard tube, depth of diamond tails, facesampling bit or other type, | abandonment plugs. All drilling fluids were flushed from the well casing prior to | ||||||||||
whether core is oriented and if so, by what method, etc.). | perforation and sampling activities. | ||||||||||
• | Historical drilling techniques into the Mississippian are not known but the wells were | ||||||||||
deep exploratory wells accessing oil and gas. | |||||||||||
Drill Sample Recovery | • | Method of recording and assessing core | and chip sample recoveries | • | No new drill holes were completed. Therefore, no drill chips, cuttings, or core was | ||||||
and results assessed. | available for review. | ||||||||||
• | Measures taken to maximise sample recovery and ensure representative | • | Drilling procedures for well re-entry only produced cuttings from cement plugs. | ||||||||
nature of the samples. | |||||||||||
• | Whether a relationship exists between sample recovery and grade and | ||||||||||
whether | sample bias may have occurred due to preferential loss/gain | ||||||||||
of fine/coarse | material. | ||||||||||
Logging | • | Whether core and chip samples have been geologically and geotechnically | • No new drill holes were completed. | ||||||||
logged to a | level of detail to support | appropriate | Mineral | Resource | • Cuttings and core samples retrieved from UGS and USGS core libraries | ||||||
• | estimation, mining studies and metallurgical studies. | • Not all wells were cored, but cuttings were collected. | |||||||||
Whether | logging | is qualitative or quantitative in nature. Core (or | • Cuttings were recovered from mud returns. | ||||||||
• | costean, channel, etc.) photography. | • | Sampling of the targeted horizons was carried out at the depths interpreted from the | ||||||||
The total length and percentage of the relevant intersections logged. | newly completed geophysical logs. | ||||||||||
• The Clastic Zones 17, 19, 29, and 33 were sampled. | |||||||||||
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Anson Resources Ltd. published this content on 17 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 July 2022 22:43:03 UTC.