Mandrake Resources Uncovers High-Grade Lithium Brines at Utah Project
Mandrake Resources (ASX: MAN) has announced significant lithium concentrations of up to 340mg/L in clastic zones at its 100%-owned Utah Lithium Project, highlighting the potential for a major lithium brine operation comparable to world-class deposits.
Detailed modelling and assessment of the Paradox Formation at Mandrake's 93,755-acre (379 km²) Utah Lithium Project has identified the potential for high-grade bulk lithium brines within the constituent clastic zones. The project, which already hosts an Inferred Resource estimate of 3.3 million tonnes of Lithium Carbonate Equivalent (LCE), has now demonstrated additional upside through extensive petrophysical work.
Analysis of 22 well penetrations across the core project area revealed that Zones A and B within the Paradox Formation have an aggregate average net pay thickness of 59 meters (193 feet), indicating significant potential brine volumes. These zones have yielded lithium concentrations of up to 340mg/L in the Peterson 88-21P well.
Additional sampling by Mandrake in 2024 confirmed concentrations of 147mg/L from the Big Indian #1 well, further validating the project's potential.
"This demonstrates the significant potential for a large-scale high-grade lithium brine hosted within the Paradox Formation, comparable to world-class lithium brine precincts of the Smackover Formation and Lithium Triangle of South America," noted Managing Director James Allchurch.
The Paradox Formation: A Geological Treasure Chest
The Paradox Formation was deposited during the Pennsylvanian Subperiod in a restricted marine and salt evaporate basin that covered southwest Utah. It consists of 29 separate salt cycles interbedded with shales, sandstones, anhydrites, and dolomites.
Based on stratigraphic trends, the clastic units have been divided into three zones:
- Zone A: Clastic units 5-10
- Zone B: Clastic units 11-20
- Zone C: Clastic units 21-29
Zones A and B have been identified as highly prospective for lithium brines, with net payable thicknesses ranging from 30-106 meters across the project area.
To qualify as "net payable thickness," clastic material must have porosity above 6% and shale volume below 70%, ensuring that only productive material is captured in brine volume projections.
Understanding Clastic Zones in Lithium Brine Projects
Clastic zones in geological formations refer to layers comprised of fragments of pre-existing rocks that have been transported and deposited. In the context of lithium brine deposits, these zones are particularly important because they can serve as reservoirs for mineral-rich brines.
The significance of clastic zones lies in their porosity and permeability characteristics, which determine their capacity to host and transmit fluids. Higher porosity means more space for brine storage, while higher permeability allows for more efficient extraction of those brines during production.
In the Paradox Formation at the Mandrake Resources Utah Lithium Project, the clastic zones (particularly Zones A and B) have demonstrated both favourable physical properties and high lithium concentrations, making them prime targets for brine extraction.
Furthermore, the similarity to other world-class deposits like the Smackover Formation suggests significant commercial potential for the Utah Lithium Project.
Strategic Development Path and Next Steps
The identification of high-grade lithium brines in the Paradox Formation is part of Mandrake's ongoing Brine Flow Modelling Study. This comprehensive analysis will:
- Identify zones of high-grade lithium
- Produce potentiometric vector maps detailing brine flow
- Determine locations for new wells and existing candidates for re-entry
The company is particularly excited about the potential for Zones A and B to serve as a "starter project" for a lithium brine operation at the Utah Lithium Project, overlying the prodigious Leadville formation.
In addition, Mandrake continues to review several precious and base metals assets both within the United States and globally to maximise shareholder value.
Why Is This Discovery Significant for Lithium Supply?
The high-grade nature of the lithium brines at the Utah Lithium Project is particularly noteworthy in the current global context. With electric vehicle manufacturers and battery producers seeking stable, high-quality lithium supplies from politically secure jurisdictions, Mandrake's Utah Lithium Project represents an important potential domestic source.
Moreover, brine-based lithium production typically has lower operating costs compared to hard-rock mining operations, potentially positioning the Utah Lithium Project as a cost-competitive supplier in the North American market.
The project's location in Utah also provides significant logistical advantages, with well-established infrastructure and relatively straightforward permitting processes compared to many international jurisdictions.
Investment Potential: Why Mandrake Resources Stands Out
Mandrake Resources presents a compelling investment case based on several key factors:
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Significant Resource Base: With an inferred resource of 3.3Mt LCE, the Utah Lithium Project is already established as a top-tier US-domiciled lithium brine asset.
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High-Grade Potential: The newly identified high-grade zones (up to 340mg/L lithium) enhance the project's economic potential.
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Strategic Location: Positioned in Utah's pro-mining jurisdiction with access to Tier 1 infrastructure, including power and water resources.
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Strong Financial Position: $13.3 million cash and no debt as of June 30, 2025, providing ample funding for project development.
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US Critical Minerals Focus: The project aligns with US government initiatives to promote domestic exploration and production of strategic materials.
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Experienced Management: Led by Managing Director James Allchurch, the company has the technical expertise to advance this significant resource.
As the global demand for lithium continues to grow, driven by electric vehicle adoption and renewable energy storage, the Mandrake Resources Utah Lithium Project represents an opportunity to develop a significant lithium resource in a stable, mining-friendly jurisdiction with excellent infrastructure.
With ongoing brine flow modelling work expected to deliver additional results shortly, investors should keep a close watch on Mandrake Resources as it advances its understanding of this potentially world-class lithium brine project.
Comparative Analysis: How Does This Stack Up Against Other Lithium Projects?
When compared to other lithium brine projects globally, the Mandrake Resources Utah Lithium Project shows promising characteristics. The reported lithium concentrations of up to 340mg/L place it in a competitive position against many existing operations.
For context, productive lithium brine operations typically work with concentrations ranging from approximately 200mg/L to over 1,000mg/L in the most concentrated Atacama Desert brines.
However, beyond just concentration, factors such as brine chemistry, extraction efficiency, and operating costs will ultimately determine the project's commercial viability. The ongoing technical studies will provide crucial insights into these aspects.
Nevertheless, the identification of substantial net pay thickness across multiple zones suggests that the Utah Lithium Project has the potential to become a significant contributor to North American lithium supply as development progresses.
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