Mandrake’s Utah Lithium Project Poised for Growth Amid Strategic US Government Support
Mandrake Resources has announced a significant maiden Inferred Resource of 3.3 million tonnes of Lithium Carbonate Equivalent at its Utah Lithium Project, alongside securing a US$1 million grant from the US Department of Energy to support further exploration and development.
- Maiden Inferred Resource estimate of 3.3Mt Lithium Carbonate Equivalent at Utah Lithium Project
- Awarded US$1 million funding grant from the US Department of Energy
- Plans to re-enter existing wells to produce large brine volumes for pilot plants
- Strong cash position of A$13.5 million with no debt
- Upcoming activities include resource update and commencement of scoping study
Mandrake’s Utah Lithium Project Emerges as a US Strategic Asset
Mandrake Resources Limited (ASX: MAN) has taken a major step forward in positioning its Utah Lithium Project as a top-tier lithium brine asset in the United States. The company’s recent release of a maiden Inferred Mineral Resource Estimate (MRE) of 3.3 million tonnes of Lithium Carbonate Equivalent (LCE) underscores the scale and potential of this 100%-owned project, which spans approximately 93,755 acres in the Paradox Basin, Utah.
This resource estimate places Mandrake firmly on the map amid growing US government and industry efforts to secure domestic supplies of critical minerals essential for the energy transition. The Utah project benefits from a pro-mining jurisdiction, access to Tier 1 infrastructure, and a favourable regulatory environment, all of which enhance its strategic value.
US Department of Energy Grant Accelerates Exploration
The collaboration with these pre-eminent US scientific institutions not only provides Mandrake with access to cutting-edge research facilities but also elevates the project’s profile within national strategic frameworks. The grant will be applied to upcoming well re-entry operations, which are designed to produce large volumes of lithium-rich brine to supply two direct lithium extraction (DLE) pilot plants.
Operational Progress and Financial Health
Mandrake’s operational focus remains on advancing the Utah Lithium Project through a series of planned activities, including the re-entry of existing wells targeting key lithium-bearing reservoirs, updating the Mineral Resource Estimate, and initiating a scoping study to assess project development options. These steps are critical in de-risking the project and moving it closer to potential production.
Financially, the company is well positioned with a cash balance of approximately A$13.5 million as of December 2024 and no debt, reflecting prudent capital management. The quarter saw a modest net cash outflow of A$218,000, primarily related to exploration and evaluation activities, underscoring a disciplined approach to expenditure.
Broader Portfolio and Strategic Outlook
While the Utah Lithium Project commands the company’s primary attention, Mandrake continues to evaluate its other mineral assets, including the Berinka gold/copper project in the Northern Territory and the Jimperding PGE/Ni/Cu project in Western Australia. These assets provide optionality and potential upside beyond the lithium focus.
Mandrake’s progress aligns with the broader geopolitical and market dynamics driving demand for lithium and critical minerals. The company’s ability to leverage US government support and scientific partnerships could prove pivotal in accelerating development timelines and securing a foothold in the competitive lithium supply chain.
Bottom Line?
Mandrake’s Utah Lithium Project is gaining momentum with robust resources and strategic US backing, setting the stage for critical next-phase development.
Questions in the middle?
- How will the US$1 million DOE grant specifically impact the timeline and scale of well re-entry activities?
- What are the expected outcomes and timelines for the upcoming Mineral Resource Estimate update and scoping study?
- How might Mandrake’s partnerships with national laboratories influence future funding and project development opportunities?
