Anson Resources (ASX:ASN) is set to move forward with a Detailed Feasibility Study for a lithium production plant at its Paradox Lithium-Bromine Project in Utah as prices for the key battery material strengthen.
The DFS, which will follow an engineering study due for completion in Q2 2022, will be carried out by engineering solutions company Worley and will establish a final total-installed cost estimate, enabling Anson to proceed to the design and construction phase.
The company notes that improving economics of lithium production are due to a combination of strengthening prices along with the advancement of alternative direct lithium extraction technology.
“This is a very exciting time for Anson with…the robust long-term outlook for Lithium Carbonate based on global acceleration towards decarbonisation”
Addressing the news, Anson Resources Executive Chairman and CEO Bruce Richardson said: “Anson is very pleased to work with Worley on the engineering for its planned lithium plant at a time when demand for lithium is strong as reflected in healthy prices.
Worley provides a strong in-country team in the USA, coupled with global expertise in the development of lithium projects. The commencement of the Detailed Feasibility Study follows extensive test work and the production of EV battery grade products utilising the Direct Lithium Extraction process.
This is a very exciting time for Anson with drilling of two production wells and the re-entry of two existing wells expected to commence in early 2022 and the robust long-term outlook for Lithium Carbonate based on global acceleration towards decarbonisation, electrification of vehicles and energy storage.”
The study will also incorporate results from two new production wells and two re-entry exploration wells which are expected to be drilled in Q1 2022, and will help to establish an updated JORC resource.
The company believes that this will provide potential for a ‘substantial’ increase in scale of early lithium carbonate production at the project.
Images: Anson Resources Limited