Anson Resources Ltd’s [ASX:ASN] share price has been unaffected by its positive performance at its Paradox Lithium Project in Utah this morning.
Shares are trading at 90 cents, down by 3.23% at the time of writing.
Anson’s test work, carried out by Lilac Solutions, found to have successfully produced lithium hydroxide from its brine source. Its recovery rates were also far better than previously expected when estimated on 3 October last year.
Lilac Solutions uses unique ion exchange to extract lithium — a process that brings high recoveries with minimal costs and quick processing times.
This puts the Australian exploration company a step towards determining their final extraction process — to be used to produce either battery-grade lithium carbonate, or lithium hydroxide using one of Lilac’s extraction processes.
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Lilac Solutions could boost Anson’s share price
Anson has recently improved its lithium recovery process — overall to be sitting around 70% after extraction and downstream processing. The average recovery of lithium from the brine has risen to 80%.
Anson’s executive chairman, Bruce Richardson, recently commended the recovery results:
‘The results that have been achieved by the Lilac Process have been exceptional. To ensure that the nest economic results could be achieved several different extraction methodologies have been tested.
‘As an early adopter of the Lilac process, using the Company will gain a significant advantage over traditional brine producers by utilising a new technology that provides an improved recovery rate, a faster production process with less environmental impact and as a result improved economics.’
With Richardson’s good faith in Anson’s performance, perhaps we will see the stock start to correct itself in the near future. Naturally, it will take time to see the full extent of the results, as technology and methods continue to evolve and improve, before we see the stock rise to match its performance.
Anson’s share price forecast
Anson is looking to refine its production process in the fourth and final quarter of this year, which it is already working towards. The natural resources giant has also established an in-field pilot plant for its lithium extraction in the first quarter of 2019.
They are also seeing progress on additional project Ajana, a graphite and base metals mine, and a nickel and cobalt mine — which are both based in Western Australia.
Despite positive results on the horizon, shareholders may have to sit tight before they see their desired results.
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