Ann: Approval To Drill Lithium-Bromine Production Wells, page-38

Anson Resources takes big step towards producing at Paradox with approval to drill lithium-bromine production wells



“These production wells will provide significant insight into the engineering and logistics of the Paradox operation, with location of the wells carefully considered and nearby the lithium bromine plant planned to be built at Blue Hills," says CEO.






Anson Resources Ltd (ASX:ASN) has taken a crucial step towards production at its Paradox Brine Project in the US state of Utah, with the state's government giving the green light to drill two lithium-bromine production wells.

Approval has been granted for its Application Permit to Drill (APD) two production wells (LCW-1 & LCW-2) for the extraction of brine to produce lithium carbonate, bromine and other minerals on the Little Utah State claims within the Paradox Brine Project.

The Little Utah lease covers 80 acres and was granted to Anson by the Utah Government earlier this year under an Other Business Arrangement (OBA).

An OBA allows for special consideration and involves bringing significant projects into production. It represents the government of Utah’s support for the project.

Major step towards production


“The granting of the application permit to drill two production wells at the Paradox Brine Project represents a major step towards commencing production,” Anson executive chairman and CEO Bruce Richardson said.

“These production wells will provide a significant insight into the engineering and logistics of the Paradox operation, with location of the wells carefully considered and nearby the lithium bromine plant planned to be built at Blue Hills.

“By leveraging the pressure created by Robert’s Rupture, Anson can transport the brine to a location which has easy access to power, gas and transportation without pumping which has a direct impact upon production costs.

"In addition, the location of the wells provides access to an existing pipeline corridor where ground disturbance has already occurred.

“Anson has carefully considered and designed the extraction process to ensure minimal ground disturbance and impact on social and recreational activities in the area in which we operate as part of adherence to our focus on our ESG policy.”

Shares have been as much as 10.5% higher intraday to A$0.095.

The company is negotiating with earth moving and construction companies for the construction of roads and drilling pads. It expects the construction of this infrastructure to begin once negotiations are complete.

Geological advantages

The production wells have been placed in carefully selected locations to take advantage of geological conditions and proximity to existing infrastructure, planned to minimise additional environmental disturbance.

The wells are close to a geological feature known as Robert’s Rupture, and just 1.2 kilometres from the Long Canyon No.2 well, with assayed grades of 253ppm lithium and 3,925ppm bromide.

Additionally, the proposed well sites are in proximity to an existing gas pipeline corridor which Anson plans to utilise for the transport of produced brine to lithium and bromine processing plants.


Improved ESG

The “unique” over pressuring of the brine at Robert’s Rupture improves the Environmental, Social and Governance (ESG) elements of the project.

Anson said well engineers had optimised the size of the extraction pipe to use the over-pressuring as a source of energy, which not only brings the brine to surface but also enables transport to the planned production plant about 30 miles away.

This method would preclude the use of fossil fuel-based energy to pump the brine, reducing the impact on the environment. Furthermore, as no fossil fuels are required to pump the brine, no trucking of fossil fuels to the site is required, again reducing emissions.

Paradox Project background


Anson Resources is an Australian-based exploration and development company, focused on the discovery, acquisition and development of natural resources that will meet the demand from rapidly growing new energy and technology markets.

The company has been engaged in developing its flagship Paradox Basin Brine Project in southern Utah, in the US.

Two production wells will be drilled on the Little Utah Mineral Lease, which abuts 1,310 unpatented pacer claims of the project area, only 180 metres from Robert’s Rupture.

This geological feature consists of extensive fracturing in the sub-terranean rock, which has resulted in higher pressure and allows the supersaturated brine to flow to surface without assistance.