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Anson Resources Ltd (ASX:ASN) plans to re-enter and sample three historical oil wells as part of its strategy to fast-track lithium production at the Paradox Lithium Project in the US state of Utah.

Re-entry of existing wells is a much more cost-effective way of sampling the lithium brines than drilling new holes and the recent staking of new claims provides this opportunity.

>READ: Anson Resources increases lithium prospective claims at Paradox project by 33%

The company’s Utah-based subsidiary A1 Lithium recently staked additional claims near the Long Canyon No 1 and White Cloud No 2 wells where historical assays recorded lithium values of 500 and 1700 ppm.

There are several wells in this area that could be re-entered to sample the minerals contained in the targeted brine zones, which reduces the time and costs of proving up a resource.

As a result, the exploration program to achieve a maiden JORC resource is being reviewed as higher grades are expected to improve the economic viability of the Paradox project.

>READ: Anson Resources on-site lithium evaporation tests compare favourably with lab tests

Anson’s managing director Bruce Richardson said, “As part of the company’s fast-tracking to production strategy the staking of additional areas has not only provided a much greater exploration area but also many new options for the re-entering, sampling of existing wells and new drilling.”

The new claims contain seven locatable historical oil wells that have been plugged and abandoned.

The table below also shows the depth interval that the sampling of the relevant clastic horizons will be carried out for the target holes.

Three holes prioritised

Anson has identified three of these holes - Long Canyon No 2, Skyline Unit 1 and Matthew Fed 1 - as providing the greatest opportunity.

Targets selected are prioritised based on proximity to the major Roberts Rupture geological structure, the Cane Creek Anticline and the cross-cutting structures in the area.

Location of the priority drill hole targets.

In addition, these wells are also close to the Long Canyon No 1 well which contains the recorded 500 ppm lithium value.

Access to these wells is via existing roads which pass through the claims.

The county roads are well maintained and the tracks will only need minor upgrading, thereby enabling an exploration program to begin once government approvals have been granted.

Drill pads of the selected wells will require some work but little rehabilitation has been previously carried out.

Long Canyon No 2 drill pad will need very little earthworks to upgrade to drill suitability.

Anson has started work to obtain approval from the Bureau of Land Management to re-enter the three selected wells.

SRK assisting in resource preparations

The company has appointed SRK Consulting to assist in reviewing the pathway to achieving a maiden JORC resource.

SRK is reviewing existing data compiled by the company from recent exploration programs and the historical drilling and sampling to identify the additional work required to achieve a maiden resource.

This gap analysis is expected to be completed in October 2018.

“With assistance from SRK, the company is focused on producing a JORC resource as soon as possible,” Richardson said.

Source : http://www.proactiveinvestors.com.au/companies/news/205277/anson-resources-aims-to-re-enter-three-wells-as-part-of-fast-track-lithium-strategy-205277.html

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