MAN increase size and scale of its US lithium project

ASX:MAN

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Published 08-AUG-2023 11:00 A.M.

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Announcement

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Trust Centre

Our US-based lithium Investment Mandrake Resources (ASX: MAN)just increased the size of its project by another ~5,659 acres.

MAN’s project sits ~60km away from $212M ASX listed Anson Resources and is now sitting on ground almost double Anson’s size.

For context Anson’s project sits on ~167km^2, after today’s announcement, MAN’s project sits on ~379km^2 of ground.

Why does size matter?

When it comes to lithium brine projects size matters.

Lithium brine reservoirs are more like oil and gas fields and can extend along a much larger area - the image below shows MAN’s 3D seismic modelling which gives an idea of how the brine reservoirs can extend over long distances:

Basically, the bigger a landholding, the more likely a company is to cover all of the area’s where the reservoirs extend into.

Eventually we are hoping the larger landholding leads to a JORC resource as big if not bigger than MAN’s neighbour Anson Resources.

What’s next for MAN?

In the short term, we want to see MAN complete the permitting for its two-well re-entry program.

After the re-entry is completed we will get a better idea of the size/scale of MAN’s project.

We are also keeping one eye on MAN finding a potential DLE technology partner, but understand that the company’s key priority is to deliver a maiden JORC resource.