Mandrake Resources has started extracting bulk lithium brine from the Evelyn Chambers #1 well, advancing its Utah Lithium Project and providing critical data for future development.
- Bulk lithium brine production commenced at Evelyn Chambers #1 well
- Brine supplied to Electroflow Technologies and other DLE providers
- US$1 million federal grant supports sampling and testing
- Data to underpin upcoming Scoping Studies
- Existing perforations not optimised for lithium extraction
Bulk Brine Production Underway at Evelyn Chambers #1
Mandrake Resources (ASX:MAN) has initiated swabbing operations at its Evelyn Chambers #1 well within the Utah Lithium Project, marking a significant operational milestone. The company is extracting bulk lithium brine from existing perforations in the Leadville Formation, a reservoir previously targeted for oil and gas but now repurposed for lithium exploration. While these perforations are not optimised for lithium extraction, they provide a cost-effective means to generate early production data without the immediate need for a purpose-drilled well, which Mandrake estimates would cost around US$4 million.
Collaboration with Electroflow Technologies and DLE Providers
The extracted brine will be supplied to several Direct Lithium Extraction (DLE) providers, including US-based Electroflow Technologies Inc, which operates a demonstration plant in Utah. Electroflow plans to process approximately 10,000 litres of Mandrake’s lithium brine to produce battery grade lithium carbonate and lithium iron phosphate. The results of this appraisal will deliver vital data on purity, recovery rates, and processing costs, forming the foundation for Mandrake’s forthcoming Scoping Studies.
Federal Funding Supports Technical Evaluation
This phase of production and testing is partly funded 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 alongside Idaho National Laboratories, the National Laboratory of the Rockies, and the University of Utah. The funding supports brine sampling and reservoir evaluation activities, including flow and pressure testing, chemical analysis, and reservoir deliverability assessments, all critical inputs for commercial modelling.
Strategic Positioning Amid Renewed Lithium Market Interest
Mandrake’s move to commence bulk lithium brine production follows recent strategic steps to consolidate its Utah tenure, including securing central SITLA leases with higher lithium brine volumes and relinquishing marginal blocks. These efforts position the company to capitalise on improving sentiment in the global lithium market. The data generated from this production phase will be pivotal in refining project economics and guiding potential capital allocation decisions, such as the timing and design of a dedicated lithium brine well.
Bottom Line?
Mandrake’s bulk lithium brine production unlocks critical data but leaves open the question of when and how it will invest in a purpose-drilled lithium well to optimise extraction.
Questions in the middle?
- How will the brine quality and recovery data from Electroflow influence Mandrake’s Scoping Studies?
- What timeline and budget will Mandrake set for drilling a dedicated lithium brine well?
- Could federal funding and partnerships accelerate commercialisation of the Utah Lithium Project?