Electric vehicles (EVs) are undergoing rapid consumer adoption, with a market expected to explode by a 24.5 percent CAGR between 2022 and 2028. Analysts expect EVs to create steadily-increasing lithium demand, with demand outpacing supply in 2022 and creating a deficit of 80,000 megatonnes. Mining companies that produce lithium likely won’t have any problems finding buyers.
The United States and Canada import most of their lithium to meet their ever-increasing needs. But that’s not for lack of deposits; both countries have significant lithium sources that have gone undeveloped.
Fortunately, companies are exploring and developing lithium assets in North America’s mining-friendly jurisdictions, such as Utah and Quebec. Will new lithium producers create a North American supply chain that keeps up with demand?
Anson Resources (ASX:ASN) is an Australian-based exploration and development mining company focusing on the resources necessary to meet the energy demands of the future. The company’s flagship project, the Paradox Lithium Project, has the potential to become a world-class lithium producer and is located near Tesla’s massively productive gigafactory in the United States. Additional projects target nickel, copper, and uranium.
The Paradox Project is located in Utah, a mining-friendly and politically stable jurisdiction. The asset holds significant lithium brine deposits, and the company has identified an extraction method that has delivered an extraction rate of 91.5 percent. This technique calls for passing the lithium through the resin, which captures the resin, and can then be separated from the resin with water. From that state, it can be processed into lithium carbonate. The company is currently undertaking a major JORC resource expansion drilling program, the results of which will feed into a Detailed Feasibility Study being carried out by global engineering firm, Worley.
The company’s management team has extensive relevant experience. Bruce Richardson, CEO and executive chairman, has held senior management positions in the private and public sectors for over 30 years. Greg Knox, executive director, has over 20 years of experience as an exploration and mining geologist for companies. Michael van Uffelen, non-executive director, has over 30 years of experience in accounting, investments, and corporate finance.
Company Highlights
Anson Resources is focused on developing its flagship project, the Paradox Lithium Project, into a significant lithium producing operation.
The company is currently undertaking a major JORC Resource expansion program at Paradox, which will form part of a Detailed Feasibility Study which is being undertaken by leading global engineering consultants, Worley.
The Paradox Project contains multiple lithium brine targets, and the company has identified an extraction method that produces an impressive return rate of 91.5 percent. Also, the project’s Direct Lithium Extraction (DLE) method is expected to deliver significant ESG benefits
In addition, the project’s brine also contains bromine, creating a valuable second potential revenue stream for the asset.
Anson Resources’ other projects target nickel, copper, vanadium and uranium. The company aims to supply energy markets with the mineral resources necessary to power the future.
The company has an experienced management team with a mix of technical, corporate and commercial skills driving the project towards its ambitious goals.
The Utah-based project covers 95 square kilometers and is in a great position to become a domestic lithium supplier to Tesla and other automakers developing EVs. The project will utilize the direct extraction process, a cost-effective technique for extracting lithium from underground aquifers.
The project contains lithium and bromine, which use similar extraction and processing methods. In addition, the Paradox Project has water access and robust local infrastructure to support future development. Anson Resources is presently in late-stage exploration on the way to project development and then the commencement of production.
Project Highlights:
Promising Resource Estimate: A JORC compliant resource estimate indicates 186,000 tonnes of lithium carbonate equivalent. Completed material test work indicates that the resulting lithium products will meet or exceed ‘battery grade’ standards, reaching up to 140 ppm lithium.
Major Resource Upside Potential: JORC Resource expansion drilling program currently underway.
Robust Local Infrastructure: The project has existing infrastructure that contains electricity, gas, road, rail and water.
No Evaporation Ponds Necessary: Anson’s chosen DLE mining and extraction technique does not require evaporation ponds, common in lithium brine projects. This saves on CAPEX, OPEX and processing time and will deliver significant ESG benefits.
Yellow Cat Vanadium-Uranium Project
The Yellow Cat project covers 708 hectares with historic high-grade uranium-vanadium exploration and production. The project is located 40 kilometers away from Anson’s Paradox Lithium project in Utah, creating an opportunity to develop both simultaneously.
Project Highlights:
Strong Historical Results: Previous drilling results include 0.3 feet at 37,500ppm uranium and 3.34% vanadium. Historical production reached 114 mlbs at 2,400 ppm uranium and 1.47 vanadium.
Nearby Uranium Mill: The project is close to White Mesa Mill, which is the only conventional and fully licensed uranium/vanadium mill in the United States.
Other Projects
Anson has an extensive project area in Western Australia covering a total of 458 square kilometers across three projects. Each project contains high grades of nickel, copper, and PGEs based on historical exploration data. However, much of the project areas remain unexplored or underexplored, which provides an excellent exploration opportunity for Anson.
Western Australian Projects:
The Bull Project: This claim covers 82 square kilometers in close proximity to Chalice Mining’s (ASX:CHN) world-class Julimar project and has not had any previous exploration for nickel, copper or PGEs. It contains a magnetic structure indicative of geological formations that contain these elements. Additionally, the project has road, rail, power and port infrastructure. Three areas have already been identified for future drilling.
Ajana / Mary Springs Project: Covering 220 square kilometers, these claims have historical data indicating 390,000 tons at 6.5% lead, 3% zinc, at 15.0/t silver. Copper is visible, but the grade was not identified in historical assays.
Hooley Well Project: The claim covers 154 square kilometers and is highly prospective for nickel, copper and PGEs. Shallow historical drilling on the claim intersected nickel and cobalt laterites. Results include up to 1.24% nickel at 8 meters.
ASN Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
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