Mandrake Resources (ASX:MAN) has received permitting from the federal US government’s Bureau of Land Management (BLM) for a re-entry of 2 wells at its Utah Lithium Project in the Paradox Basin, US.
The $24 million market capitalisation company says the permitting allows for re-configuring existing oil and gas wells through additional perforations and/or isolation of additional potentially lithium-bearing reservoirs.
Mandrake says this will aid the specific targeting of brine reservoirs modelled as containing relatively high concentrations of lithium.
The company has completed detailed drilling work plans for both wells, as well as detailed engineering and sampling programs.
Fieldwork will take place upon completing the imminent publication of a JORC-compliant lithium exploration target for the Utah project, alongside the results from Direct Lithium Extraction (DLE) testing.
The DLE testing results are pending from 2 independent DLE providers, which are seeking to produce lithium hydroxide directly from brine derived from the project.
Mandrake notes that the BLM approval comes after the company submitting a detailed Notice of Intent (NoI) to the BLM and Utah Division of Oil, Gas, and Mining (UDOGM).
The NoI proposes exploration and well development activities.
Mandrake Resources’ Utah Lithium Project sits in the ‘prolific’ lithium 4 corners Paradox Basin in south-eastern Utah.
As of 30 December 2023, the company had $15.3 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Mandrake Resources
