Mandrake Resources reports significant progress at its Utah Lithium Project, confirming a 3.3Mt lithium carbonate equivalent inferred resource and advancing brine flow modelling to pinpoint high-grade lithium zones.
- 3.3Mt LCE inferred resource at Utah Lithium Project
- High lithium concentrations up to 340mg/L in Paradox Formation brines
- Brine flow modelling underway to optimise exploration targets
- Strong cash position of A$12.1 million with no debt
- Active evaluation of new precious and base metal projects
Mandrake’s Utah Lithium Project – A US-Based Brine Asset of Scale
Mandrake Resources Limited (ASX – MAN) has reinforced its position as a notable player in the lithium exploration sector with its latest quarterly update on the Utah Lithium Project. The company’s 100%-owned project, spanning approximately 93,755 acres in southeastern Utah, boasts an inferred mineral resource estimate of 3.3 million tonnes of lithium carbonate equivalent (LCE), placing it among the top-tier lithium brine assets domiciled in the United States.
Significant Lithium Concentrations and Brine Thickness
Recent sampling within the Paradox Formation’s Zones A and B has revealed lithium concentrations reaching as high as 340 milligrams per litre, a figure that underscores the project's potential to host economically viable lithium brines. Analysis of 22 well penetrations across the core project area indicates an aggregate average net pay thickness of 59 metres, suggesting substantial brine volumes that could support future extraction efforts.
Brine Flow Modelling to Guide Exploration
Mandrake is currently finalising a conceptual 2D brine flow model designed to identify zones with the highest lithium concentrations. This modelling integrates geological, geophysical, and petrophysical data, including seismic and well information, to create potentiometric maps that will direct exploration towards the most prospective areas. The results, expected imminently, are anticipated to refine target prioritisation and enhance the efficiency of future drilling or well re-entry programs.
Strategic Focus on Low-Cost Value Addition and New Opportunities
In line with a strategic decision made earlier in 2025, Mandrake has limited capital-intensive drilling activities, instead focusing on low-cost, longer lead-time initiatives such as permitting and data optimisation. The company is also exploring the potential to re-enter existing suspended or depleted oil and gas wells for brine sampling and flow testing, in collaboration with its Direct Lithium Extraction partners Electroflow Technologies and ElectraLith.
Beyond lithium, Mandrake is actively assessing new precious and base metal projects both within the US and internationally, aiming to diversify its portfolio and unlock additional shareholder value. Existing projects in Australia, including the Berinka gold/copper and Jimperding PGE/Ni/Cu prospects, remain under review.
Financial Position and Outlook
Mandrake maintains a robust financial position with approximately A$12.1 million in cash and no debt as of 30 September 2025. Quarterly net cash used in operations was A$1.18 million, reflecting ongoing investment in exploration and corporate activities. The company’s strong cash reserves provide a solid foundation to advance its projects and pursue new opportunities without immediate capital raising.
Bottom Line?
As Mandrake awaits its brine flow model results, the market will watch closely to see how this data shapes the next phase of lithium exploration and development.
Questions in the middle?
- How will the upcoming brine flow model results influence Mandrake’s drilling or well re-entry plans?
- What are the timelines and prospects for commercialising lithium extraction at the Utah project?
- Which new precious or base metal projects might Mandrake prioritize for acquisition or development?