Mandrake Faces Commercial and Regulatory Hurdles Despite Utah Lithium Breakthrough

• 3.3Mt Lithium Carbonate Equivalent inferred resource at Utah Lithium Project
• Brine flow modelling identifies high-grade lithium zones akin to world-class deposits
• Non-binding lithium offtake LOI signed with US refinery Stardust Power
• Binding agreement with DISA Technologies to recover uranium and critical minerals from mine waste
• Strong cash position of A$12 million with no debt

Mandrake’s Utah Lithium Project – A US Lithium Powerhouse

Mandrake Resources Limited (ASX – MAN) has reported substantial progress in developing its Utah Lithium Project, now boasting an inferred mineral resource estimate of 3.3 million tonnes of lithium carbonate equivalent (LCE). This positions the project as a top-tier lithium brine asset within the United States, a country increasingly focused on securing domestic critical mineral supplies.

The company’s recent brine flow modelling has been pivotal, revealing two distinct zones of high lithium concentration overlapping with high-quality reservoir rock formations. These 'sweet spots' within the Leadville Formation promise enhanced extraction potential, with lithium concentrations reaching up to 340 mg/L; comparable to renowned global lithium brine deposits such as the Smackover Formation.

Strategic Partnerships Bolster Commercial Prospects

Mandrake has taken a significant step towards commercialisation by signing a non-binding Letter of Intent with Stardust Power Inc., a US-based lithium refinery developer listed on NASDAQ. The agreement contemplates the supply of 7,500 metric tons per annum of lithium chloride feedstock, leveraging the project's proximity to established infrastructure and transport routes. Stardust Power’s planned facility in Muskogee, Oklahoma, aims to produce up to 50,000 metric tons of battery-grade lithium carbonate annually, underscoring the strategic importance of Mandrake’s resource.

In parallel, Mandrake has entered a binding agreement with DISA Technologies Inc. to deploy patented High Pressure Slurry Ablation technology for recovering uranium and other critical minerals from abandoned mine waste within the Utah Project area. This innovative approach not only addresses environmental remediation but also taps into additional revenue streams through the recovery of valuable materials. DISA’s recent licensing by the US Nuclear Regulatory Commission marks a milestone in modernising uranium waste treatment in the western United States.

Financial Health and Future Endeavours

Mandrake maintains a robust financial position with approximately A$12 million in cash and no debt, supporting ongoing exploration and development activities. The company is actively reviewing suspended and depleted oil and gas wells for potential re-entry to facilitate brine sampling and testing, critical for advancing direct lithium extraction technologies.

While the Jimperding Project has been relinquished following comprehensive exploration, Mandrake continues to explore new opportunities both domestically and internationally, focusing on precious and base metals with promising commercial potential. The Berinka gold and copper project in the Northern Territory remains under assessment.

Mandrake’s strategic focus on expanding its lithium footprint in the US aligns with broader geopolitical trends favouring domestic critical mineral supply chains, positioning the company well for future growth in an evolving market.

Bottom Line?

Mandrake’s Utah Lithium Project is shaping up as a critical US lithium source, but finalising commercial agreements and advancing uranium recovery will be key to unlocking full value.

Questions in the middle?

• Will the non-binding lithium offtake LOI with Stardust Power convert into a binding contract?
• How soon can DISA Technologies’ uranium recovery operations commence and scale within the Utah Project?
• What new project opportunities might Mandrake prioritise next amid its international and US-focused exploration?