Mandrake Resources has secured key agreements to produce lithium brine from its Utah project and plans a significant drilling campaign in Australia, supported by strong cash reserves.
- Well Access Agreement signed for lithium brine extraction in Utah
- Collaboration with Electroflow and EnergySource Minerals for lithium testing
- 3,200m drilling program planned at Berinka Au-Cu Project in Northern Territory
- US$1 million federal funding supports lithium brine sampling and analysis
- Cash position of A$11.7 million with no debt
Bulk Lithium Brine Production Set to Begin in Utah
Mandrake Resources Limited (ASX:MAN) has taken a crucial step towards commercialising its Utah Lithium Project by signing a Well Access Agreement with Genesis ST Operating LLC. This deal allows Mandrake to extract up to 600 barrels (approximately 95,400 litres) of lithium brine from the Evelyn Chambers #1 well. The brine will be drawn from existing oil and gas perforations in the Leadville Formation, which, while not optimised for lithium, provide an immediate source for technical and commercial appraisal.
Importantly, the brine production costs are partially offset by a US$1 million grant from the US Department of Energy awarded to the Paradox Basin Lithium Group, of which Mandrake is a participant. This federal funding underpins the sampling and testing efforts critical to advancing the project’s development.
Testing Partnerships to Inform Scoping Studies
Mandrake is collaborating with Electroflow Technologies Inc, which operates a direct lithium extraction (DLE) demonstration plant in Utah. Electroflow will process around 10,000 litres of Mandrake’s lithium brine aiming to produce battery-grade lithium carbonate and lithium iron phosphate. The results will yield essential data on purity, recovery rates, and processing costs, feeding directly into upcoming Scoping Studies.
EnergySource Minerals (ESM), a major DLE operator part-owned by SLB (formerly Schlumberger), will also test brine compatibility using their Iliad technology. ESM’s analysis, leveraging rapid NMR and ICP-OES techniques, will provide predictive data for pilot-scale operations, further de-risking the extraction process.
Berinka Au-Cu Drilling Program to Commence Following Permit Approval
On the exploration front, Mandrake has contracted Geodrill Australia for a 3,200-metre reverse circulation drilling program at its Berinka Pine Creek Gold-Copper Project in the Northern Territory. The program, scheduled to start in August 2026 pending environmental approvals, targets gold and copper mineralisation at the Terry’s group of prospects and several untested geochemical and geophysical anomalies.
The Pine Creek region has attracted renewed exploration interest with multiple new carbon-in-leach plants permitted recently, highlighting the area’s potential. Mandrake’s previous drilling at Berinka returned encouraging intercepts, including 6 metres at 2.3 g/t gold and 0.34% copper from shallow depths, underscoring the project’s prospectivity.
Exploration and Growth Initiatives Continue
Beyond current projects, Mandrake is actively assessing new opportunities across the US and internationally, focusing on precious and base metals with strong potential returns. The company is leveraging its technical expertise and local networks to generate and secure promising resource projects organically within the US.
Financial Position Supports Development Plans
Mandrake closed the quarter with a solid cash balance of A$11.7 million and no debt. Operational cash outflows were modest at A$177,000 for the period, reflecting disciplined expenditure. This financial strength positions Mandrake to advance its lithium and gold-copper projects without immediate capital raising pressures.
The Utah Lithium Project remains a standout asset with a maiden Inferred Mineral Resource Estimate of 3.3 million tonnes lithium carbonate equivalent, positioning it among the top-tier US lithium brine deposits. Located in a pro-mining jurisdiction with access to key infrastructure, the project aligns well with US government initiatives to bolster domestic critical minerals supply chains.
Bottom Line?
Mandrake’s progress in lithium brine production and gold-copper exploration, underpinned by strong cash reserves and federal funding, sets the stage for critical technical data that will shape its next development steps.
Questions in the middle?
- How will the technical results from Electroflow and EnergySource Minerals influence Mandrake’s scoping studies and project economics?
- Will the upcoming drilling at Berinka confirm mineralisation sufficient to support development in a competitive Northern Territory gold-copper region?
- Could Mandrake pursue further partnerships or capital raises to accelerate its US and international growth initiatives?