Anson’s Lithium Expansion Hinges on Drilling Success Amid Rising Production Costs and Market Demand

Strategic Drilling Expansion at Paradox Lithium Project

Anson Resources Limited (ASX: ASN) has made significant strides in its diversified minerals portfolio during the December 2024 quarter, with a particular focus on its flagship lithium assets in Utah, USA. The company’s 100%-owned subsidiary, A1 Lithium, secured approval from the US Bureau of Land Management (BLM) to commence a western expansion drilling program at the Paradox Lithium Project. This approval unlocks the next phase of exploration targeting the thick Mississippian and Pennsylvanian geological units, which are known to host lithium-rich brines.

The planned re-entry into the Mineral Canyon Fed 1-3 and Sunburst 1 wells aims to substantially increase the existing JORC Mineral Resource, currently estimated at 1.5 million tonnes of lithium carbonate equivalent (LCE) and 7.6 million tonnes of bromine. The western expansion drilling is expected to enhance the resource base and underpin Anson’s ambition to develop one of North America’s largest lithium resources.

Innovative Processing and Site Development at Green River

At the Green River Lithium Project, Anson successfully tested a proprietary chemical-free pretreatment process to reduce iron content in brine before feeding it into the Koch Direct Lithium Extraction (DLE) system. This innovation, developed at Anson’s Lithium Innovation Center in the USA, promises to lower production costs and improve environmental outcomes by eliminating the need for chemical reagents traditionally used in iron removal.

Complementing this technological advancement, the company completed a second geotechnical survey on its privately owned 20-acre site in Emery County, Utah. The study confirmed the suitability of the location for constructing a DLE processing plant, providing critical data for engineering and foundation design. The site’s proximity to the Green River and major transport routes further supports operational logistics.

Maiden Resource and Critical Minerals Discovery at Ajana

In Western Australia, Anson announced a maiden JORC Inferred Mineral Resource estimate for its Surprise Deposit within the Ajana Base and Precious Metals Project. The resource totals 103,000 tonnes grading 2.7% lead, 0.45% zinc, and 1.3 grams per tonne silver. Notably, the drilling program also identified critical minerals such as gallium, germanium, indium, and barium associated with the zinc mineralisation, highlighting the project's potential beyond traditional base metals.

The mineralisation remains open along strike and at depth, suggesting scope for resource growth through further drilling and metallurgical studies. This development marks a key milestone in Anson’s strategy to diversify its portfolio with base and critical metals assets in established mining jurisdictions.

Advancing Uranium and Vanadium Exploration at Yellow Cat

Further expanding its US footprint, Anson received approvals from both the BLM and the Utah Division of Oil, Gas and Mining to drill 24 exploration holes at the Yellow Cat Uranium and Vanadium Project. The shallow drilling program, targeting depths between 12 and 40 meters, aims to define a JORC resource by integrating new data with extensive historical drilling records. This relatively low-cost exploration initiative could position Anson in the critical uranium and vanadium markets, which are gaining renewed interest amid energy transition trends.

Strong Financial Position Supports Growth

On the corporate front, Anson successfully completed an oversubscribed Share Purchase Plan (SPP), raising $2.3 million to bolster working capital. The company ended the quarter with a robust cash balance of $7.4 million and access to an undrawn $30 million equity placement facility, providing ample liquidity to fund ongoing exploration and development activities. Quarterly cash flow statements reflected disciplined expenditure, with $0.9 million spent on administration and corporate costs and $0.4 million on exploration and evaluation, predominantly at the Paradox Basin projects.

Overall, Anson Resources is advancing multiple projects across lithium, base metals, and critical minerals with a clear focus on sustainable extraction technologies and resource expansion. The company’s diversified asset base and strong financial footing position it well to capitalize on growing demand for battery and energy transition materials.