Green River Lithium Project Advances with Utah Approval to Re-enter Mt Fuel Well
Anson Resources has gained regulatory approval to re-enter a historic well at its Green River Lithium Project, aiming to deepen the reservoir and advance its lithium resource definition. This move sets the stage for a critical feasibility study that could underpin future lithium production.
- Utah regulators approve re-entry of Mt Fuel-Skyline Geyser 1-25 well
- Drilling aims to deepen Leadville Limestone to expand lithium-rich brine reservoir
- Data from Bosydaba #1 well to support JORC Mineral Resource estimate
- JORC Resource will feed into upcoming Definitive Feasibility Study
- Historical well data indicates high porosity, permeability, and reservoir pressure
Regulatory Milestone Achieved
Anson Resources Limited (ASX: ASN) has reached a significant development milestone with the Utah Division of Oil, Gas and Mining granting approval to re-enter the Mt Fuel-Skyline Geyser 1-25 well at its Green River Lithium Project in southeastern Utah. This approval follows the earlier green light from the Bureau of Land Management, completing the necessary regulatory framework for the company to proceed with its planned drilling program.
Strategic Drilling to Expand Lithium Resource
The re-entry drilling targets the Leadville Limestone formation, a key geological unit known for its high porosity and permeability. By deepening the well beyond its historical total depth of 9,514 feet, Anson aims to increase the thickness of this lithium-bearing reservoir. This expansion could substantially enhance the volume of lithium-rich brines accessible for extraction, complementing the promising results obtained from the nearby Bosydaba #1 well.
Building a JORC-Compliant Resource
The data gathered from this drilling campaign will be instrumental in establishing a JORC Mineral Resource estimate for the Green River Project. This resource estimate is a critical step toward completing a Definitive Feasibility Study (DFS), which will assess the economic viability of lithium production from the site. The historical well logs and pressure tests indicate favorable reservoir conditions, including pressures between 4,800 and 5,100 psi and excellent reservoir characteristics in the Mississippian horizon.
Leveraging Historical Data and Modern Exploration
While the Mt Fuel-Skyline Geyser well was originally drilled for oil exploration in the 1970s and did not assay for lithium, the presence of supersaturated brines and saltwater with similar chemical profiles to those found in Bosydaba #1 suggests significant lithium potential. Anson’s approach integrates this historical geological knowledge with contemporary sampling and assay techniques to unlock value from previously underexplored formations.
Next Steps and Market Implications
With all approvals in place, Anson Resources is poised to commence drilling once a suitable rig is secured. Success in this program could materially increase the lithium resource base, advancing the project closer to production readiness. Given the global surge in lithium demand driven by electric vehicles and energy storage, the Green River Project’s progress will be closely watched by investors and industry stakeholders alike.
Bottom Line?
Anson’s approved well re-entry marks a pivotal step toward unlocking a potentially significant lithium resource in Utah’s Green River basin.
Questions in the middle?
- When will drilling at the Mt Fuel-Skyline Geyser well actually commence?
- What lithium grades and brine volumes will the re-entry drilling reveal?
- How will the upcoming JORC resource estimate influence project financing and timelines?
