Anson Resources [ASX:ASN] saw an 25% rise in its share price to $0.10 per share yesterday at market close. This came after encouraging news that recent test work has revealed increasing concentrations of lithium and boron in their exploration.
The Paradox Lithium Project, located in Utah, Nevada, is the flagship project for the exploration company in its ‘discovery, acquisition and development of natural resources’ in Australia and the US.
Why is this important for Anson Resources?
The Paradox Project has recently undergone two separate tests since the beginning of the year. The first test carried out in January 2018 provided samples rich in bromine, iodine and magnesium deposits.
The second 24-day test, carried out in March, also revealed higher lithium values than previously indicated.
The results are important to the mining company as they indicate that ‘using evaporation to precipitate unwanted salts in the brine as a pre-processing step’ will help with the extraction of lithium in the process.
Anson Resources’ CEO, Bruce Richardson, made this statement:
‘The unexpected results of the evaporation test work using heat are very encouraging for the success of the Paradox Lithium Project.
‘The rapid precipitation of the salts from the brine and the resulting increase in lithium concentration in the brine should provide improved feed for the production plant resulting in improved productivity.’
What does this mean for Anson Resources?
Test work for the company is still ongoing, with the final grade report not expected until mid-August.
Demand for lithium has increased globally, mainly due to its use in technology and industrial manufacturing. The productive results of the last few months should enable Anson Resources to take advantage of further exploration, with the added revenue from the deposits likely to help the company’s financial situation.
The next stage for the explorer will be the continued extraction and eventual processing of lithium carbonate as part of their plan to deliver resources for energy and technology markets.
Editor, Money Morning
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