Mandrake Resources (ASX:MAN) has executed a well access agreement with Genesis ST Operating (ST) to produce up to 95,400 litres of lithium brine from an existing well at its Utah Lithium Project.
The company will extract the brine from Evelyn Chambers well one through a swabbing operation targeting existing perforations in the Leadville formation.
The bulk brine will supply Electroflow Technologies‘ Utah demonstration plant and EnergySource Minerals for comprehensive technical and commercial evaluation.
Under the agreement with ST, Mandrake will bear all production costs estimated at less than US$100,000 ($144,332), with no payments due to the oil and gas operator.
The work will be partially supported by US$1 million federal funding awarded by the US Department of Energy to the Paradox Basin Lithium Group.
Managing Director James Allchurch says the ability to provide Electroflow’s Utah demonstration plant with a large volume of brine represents a significant step forward for the company.
Mandrake’s 100%-owned Utah Lithium Project spans approximately 379km2 and hosts an inferred mineral resource estimate of 3.3 million tonnes of lithium carbonate equivalent across three formations.
Mandrake Resources is a mineral explorer focused on advancing the Berinka Gold-Copper Project in the Northern Territory and the 93,000-acre Utah Lithium Project in the US.
Write to Paula Fabe at Mining.com.au
Images: Mandrake Resources
