Anson Resources Ltd (ASX:ASN) has passed another milestone in its transition from exploration and development into production at the Paradox Brine Project in Utah, USA, with engineering studies underway.
This work is being undertaken by Millcreek Mining Group, based in Salt Lake City, Utah.
The studies will begin with a preliminary economic assessment (PEA), which is expected to be completed in April 2020.
Anson then plans to expand the PEA into a preliminary feasibility study (PFS) which will be used to seek funding for the development of both bromine and lithium chemical plants.
Investors have responded positively with shares up more than 17% to 4 cents, an increase from 2.6 cents on January 6.
The studies will review the test work, process design, vendor furnished equipment packages and preliminary design in addition to cost estimates for the two-stage development of commercial bromine and lithium chemicals production plants.
Permitting and potential environmental issues for the proposed processing facility locations and pipeline routes will be examined as well as opex and capex schedules for brine extraction and processing for a general economic model.
First stage development
The studies will be based on the first stage of development being construction of a 15,000 tonnes per annum (tpa) bromine chemical plant and a 700 tpa lithium chemicals pilot plant.
Anson envisages that the revenue generated from the bromine plant will be used to support the funding of the second stage of the development program - a 60,000 tpa bromine and 15,000 tpa lithium plant.
Anson is pursuing a multi-mineral/multi revenue strategy, with the immediate focus of commercial production of bromine chemicals to progress the Paradox project to early cash flow.
This will eventually be followed by the addition of more products which are expected to be able to be commercially produced from the project’s brine.
The extraction of bromine from brine is a proven, mature technology utilised in projects all over the world which provides Anson with an opportunity to de-risk its project and proceed to production without extended test work and pilot plants that would normally be required for developing a new technology process.
This allows the company to fast-track to revenue generation with the aim of self-funding the extraction of other minerals from its brine.
Successful pilot production
Anson successfully piloted the production of bromine at De Dietrich’s pilot plant facility in Germany in December with lithium, boron and iodine chemicals produced to date.
De Dietrich has extensive experience with bromine plants around the world and have supplied Anson with indicative capex and opex figures for the bromine plant based on that experience.
These figures will be fed into the PEA/PFS economic analysis.