Anson Resources Ltd (ASX:ASN) has started test work on newly discovered historic diamond core and cuttings which may assist the company to upgrade the existing JORC-compliant lithium resource for the Paradox Brine Project in the US to indicated and measured categories.
The company has recently discovered this material which had been retained by the US Federal Government agencies - United States Geological Society (USGS) and the Utah Geological Survey (UGS).
These samples are from previous oil and gas exploration programs conducted in the Paradox project area which intersected Clastic Zone 31, the initial zone Anson is targeting for the extraction of bromine and lithium.
Significantly, the diamond core and cuttings show fracturing and ‘vuggs’ throughout the entire Clastic Zone 31 interval demonstrating high porosity for the storage of brine and confirming the geophysical logs and porosity values used in the maiden JORC resource announcement in June 2019.
Laboratory testing underway
The diamond core and cuttings have been sent to laboratories in Denver, Colorado and Salt Lake City, Utah, with several tests to be performed to further define effective porosity and specific yield.
With this data the transmissivity, permeability (hydraulic conductivity) and storativity will be calculated.
Historic diamond core cuttings samples
The discovery of the diamond core and cuttings may provide a cost-saving for Anson to upgrade its JORC resource at Paradox to indicated and measured categories without the requirement for further drilling and flow testing.
It is expected that the resource contained in the areas around the sampled historic wells will be upgraded to indicated and measured categories in the near-term.
Flow model design
In addition, historic drilling logs have been obtained from several wells in the same area and these will be combined with the logs from the exploration re-entry programs conducted by Anson.
The data from the logs and test work will be processed to initially design a 3D geological model to further determine volume metrics which will be applied to design a flow model for the project.
This model will determine the number of supply wells and the piping required to provide sufficient brine to feed the planned bromine/lithium production facility.
The work will be conducted in parallel with the preliminary economic assessment and will be utilised in the preparation of the company’s pre-feasibility study.