Anson Resources Secures Approval for Strategic Well Re-Entry at Green River
Anson Resources (ASX: ASN) has received approval from the U.S. Bureau of Land Management to re-enter the Mt Fuel-Skyline Geyser 1-25 well at its Green River Lithium Project in Utah, marking a significant milestone in the company's development strategy.
Key Development Accelerates Resource Definition Timeline
The approved re-entry of the historical Mt Fuel-Skyline Geyser well represents a strategic advancement for Anson's Green River Lithium Project. The company plans to use drilling results, combined with data from the recently completed Bosydaba#1 well, to establish a JORC Mineral Resource at the project.
What makes this particularly significant is the rapid approval timeline, which stands in stark contrast to previous permitting experiences at the company's Paradox Lithium Project where similar applications took over three years to process. This efficiency demonstrates the benefits of Anson's strategic shift to focus on Green River and acquire brownfield sites under Utah state administration.
Executive Chairman and CEO Bruce Richardson highlighted this achievement:
"This is a major achievement for the Green River Lithium Project and Anson greatly appreciates the speed in which the BLM has provided this re-entry approval, demonstrating the significance attached to this project."
Promising Geological Indicators From Historical Data
Historical data from the Mt Fuel-Skyline Geyser well shows compelling evidence that the target zones may contain lithium-rich brines similar to those found at the company's Bosydaba#1 well. While lithium was not specifically tested in the historical well, key indicators suggest strong potential:
| Mineral | Bosydaba #1 | Mt Fuel-Skyline Geyser 1-25 |
|---|---|---|
| Magnesium | 1,359 | 1,196 |
| Potassium | 2,574 | 2,700 |
| Calcium | 10,040 | 9,555 |
| Sodium | 56,650 | 64,376 |
| Chloride | 120,081 | 121,000 |
The striking similarity in salt concentrations between the two wells suggests that the Mt Fuel-Skyline Geyser well may contain comparable lithium values to those found at Bosydaba#1.
Most notably, historical documentation described the Mississippian rocks at the site as "crystalline dolomite with excellent porosity and permeability" that "yielded a large volume of salt water on a test." These geological characteristics are highly favourable for lithium brine extraction.
Strategic Geological Target: The Ten Mile Graben
The exploration program specifically targets highly porous horizons resulting from geological structures in the region, including the Ten Mile Graben – a dropped-down block of rock bordered by parallel fault lines that passes east-west through the Green River Lithium Project claims.
This geological formation may act as a natural "trap" for brines flowing from northeast to southwest, potentially concentrating lithium and other mineral salts. Historical drilling recorded impressive pressures between 4,800 and 5,100 psi in the Mississippian horizon, indicating favourable conditions for brine extraction.
The drilling program at the Green River Lithium Project will target six specific horizons:
| Horizon | Depth From (ft) | Depth To (ft) | Interval (ft) | Pressure (psi) | Temperature (°F) |
|---|---|---|---|---|---|
| CZ 17 | 6,740 | 6,805 | 65 | 4,118 | 120 |
| CZ 19 | 6,930 | 6,960 | 30 | – | – |
| CZ29 | 7,580 | 7,590 | 10 | – | – |
| CZ 31 | 7,635 | 7,650 | 15 | – | – |
| CZ33 | 7,800 | 7,820 | 20 | – | – |
| Leadville | 9,157 | 9,514 | 357 | ~5,000 | 165 |
Understanding Permeability in Lithium Brine Projects
Permeability is a critical factor in the success of lithium brine projects, referring to how easily fluids can flow through rock formations. High permeability allows for efficient extraction of lithium-rich brines at commercial rates.
The historical data from the Mt Fuel-Skyline Geyser well and other wells in the region indicate that the Mississippian strata have high permeability across a large area. This characteristic is crucial for two main reasons:
- It suggests that flow rates required to support a planned lithium plant may be achievable
- It indicates that pressure may remain constant over the life of the lithium project
Additionally, the fractured rock forms an excellent reservoir for supersaturated brines. When brine is extracted, more brine can flow into the created void, helping maintain reservoir pressure and potentially delivering high ultimate recovery rates – a key economic factor for commercial lithium production.
Environmental and Operational Advantages
The re-entry program at the Green River Lithium Project offers significant environmental and operational benefits. The existing drill pad remains in place with only minor rehabilitation required, and the drill hole is clearly identified by a marker pole. This means minimal re-establishment work is needed before drilling can commence.
Additionally, the historical well is located adjacent to an existing road, eliminating the need for new access routes. These factors contribute to:
- Minimal environmental impact
- Reduced social and recreational disruption
- Lower project startup costs
- Faster timeline to drilling commencement
This approach aligns with Anson's stated commitment to developing a sustainable project with minimal environmental footprint by utilising areas that have already experienced ground disturbance.
Critical Step in Advancing Project Financing
The approval represents more than just permission to drill – it's a critical step in Anson's pathway to securing project financing through the Export-Import Bank of the United States (EXIM). As Richardson noted, the company's EXIM application can only proceed once Anson completes:
- A Definitive Feasibility Study
- Appropriate test work
- A sufficient JORC Resource estimate based on drilling results
With this approval secured, Anson now has no current applications requiring Federal government approval for the Green River Lithium Project other than the final EXIM financing approval.
Investment Perspective: Why This Matters
This development is significant for investors watching Anson Resources for several key reasons:
-
Accelerated Timeline: The rapid approval demonstrates the benefits of Anson's strategic shift to private land development at Green River under Utah state administration.
-
Resource Definition Potential: The drilling program could establish a JORC Mineral Resource, a critical milestone for project valuation and financing.
-
Favourable Geology: Historical data suggests excellent porosity, permeability, and pressures in target reservoirs – key factors for successful lithium brine extraction.
-
Development Strategy Validation: The approval validates Anson's approach of targeting brownfield sites and existing well infrastructure to minimise environmental impact and accelerate development.
-
Financing Pathway Advancement: This approval moves Anson closer to completing the requirements for EXIM financing consideration.
The Green River Lithium Project represents Anson's strategic focus on developing its lithium assets in the United States, positioning the company to potentially benefit from increasing demand for domestic lithium production amid growing electric vehicle adoption and energy storage deployments.
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