The Paradox Lithium Project is Anson’s core asset. It is an advanced development project, covering an area of 167km2 in the Paradox Basin in southern Utah, in the USA.
Anson is focused on developing the Paradox Project into a significant lithium producing operation, to provide high-quality lithium carbonate for the rapidly growing EV battery market:
The September 2022 DFS for Phase 1 of the Paradox Lithium Project confirmed the Project’s advanced potential to become a major supplier of high purity, battery grade Lithium Carbonate into the US Electrical Vehicle market.
The DFS proposes that the Project will produce 13,074 tonnes per annum of high purity Lithium Carbonate over an initial 10-year project life, and then produce lower commercial levels up to a production life of 23 years (assuming no further Mineral Resource expansion and that no other extraction wells will come on-line).
Phase 2 development of the Paradox Project is proposed to comprise further substantial increases in lithium production capacity plus bromine production.
Key financial highlights of Phase 1 DFS are presented in the Table below.
|Scenario||Pre-Tax (USD)||Post-Tax (USD)|
|NPV (7%)||IRR||NPV (7%)||IRR|
|Spot Price Case2||$5,149m||98%||$3,768m||80%|
Table: Paradox Lithium Project Phase 1 DFS key financial highlights
Global engineering group Worley Ltd (Worley) was the lead consultant for the DFS and responsible for the Class-3 Estimate of the above-ground facilities. Capital and operating costs associated with Direct Lithium Extraction technology has been provided by Anson’s technology partner, Sunresin New Materials Co. Ltd (“Sunresin”).
Key outcomes and parameters of the DFS are presented in the Table below.
|Production Parameters||Units||Phase 1|
|Production Rate – Lithium Carbonate||Tonnes per annum||Up to 13,074|
|Indicated Mineral Resource – Lithium Carbonate||Contained (‘000t)||239|
|Recovery – direct lithium extraction||%||91.5|
|Recovery – carbonation from lithium eluate||%||88.6|
|Key Financial Parameters|
|Capital Cost||$US Million||495|
|C1 Operating Costs||US$ / t LCE||4,368|
|Price – Lithium Carbonate||$US/tonne||Forecast Curve|
|Annual EBITDA Margin||%||69|
|Average annual EBITDA||$US Million||153|
|IRR Pre Tax||%||47|
|IRR Post Tax||%||37|
|NPV7 pre-tax (Base Case)||$US Million||1,306|
|NPV7 pre-tax (Spot Case)||$US Million||5,149|
Table: Paradox Lithium Project key parameters and outcomes
Further details on the Paradox Phase 1 DFS are provided in Anson’s ASX announcement of 8 September 2022.
The Paradox Project hosts a major JORC Mineral Resource of;
1,037,900 tonnes of lithium carbonate equivalent (LCE) and 5,274,900 tonnes of bromine, including;
– Indicated Resource of 346,109 tonnes of LCE and 1,840,000 tonnes of bromine; and
– Inferred Resource of 691,800 tonnes of LCE and 3,434,900 tonnes of bromine
Table: Paradox Lithium Project Total JORC Mineral Resource estimation1.
The Mineral Resource incorporates drilling and sampling by Anson at the Cane Creek 32-1 well and the Long Canyon Unit 2 within the Project area. The Resource also includes significant amounts of other minerals including Bromine (Br2), Boron (Boric Acid, H3BO3) and Iodine (I2)
Anson is seeking to further expand the Paradox Project’s Mineral Resources, by targeted drilling and sampling in the western region of the Project. The results of the ‘Western Expansion’ strategy are expected to deliver an upgrade to the existing Mineral Resource, which was confirmed from drilling and sampling in the eastern area of the Project. It also plans to define a Mineral Resource at the nearby Green River Lithium Project, which would be added to the Company’s global Mineral Resource in the Paradox Basin.