Anson Resources’ Strategic Drilling Programs: A Pathway to Enhanced Lithium Resources and Project Viability

Image: A map of the Green River Lithium Project in Utah, highlighting key drilling sites, aquifer zones, and the Mt Fuel-Skyline Geyser 1-25 well. Overlay data points showing lithium concentrations, porosity levels, and pressure gradients in targeted horizons.

Chart: Line graph comparing Anson Resources’ lithium recovery rates (98%) and Li:TDS ratio (0.129) against industry benchmarks (e.g., average recovery rates of 70–85% and Li:TDS ratios of 0.05–0.10). Include a bar chart showing the 44% increase in lithium values post-aquifer opening.

Assessing the Investment Implications of Re-Entry Drilling in Accelerating Lithium Project Economics

The global lithium market, driven by surging demand for Li-ion batteries in electric vehicles and renewable energy storage, has become a focal point for investors seeking high-growth opportunities. Anson Resources (ASX: ANZ), a junior explorer targeting the Paradox Basin in Utah, has positioned itself at the intersection of strategic geology, cutting-edge technology, and regulatory agility. Recent developments in its Green River Lithium Project underscore how re-entry drilling—leveraging existing infrastructure—can catalyze resource expansion, reduce capital intensity, and fast-track commercial viability.

Strategic Re-Entry Drilling: A Catalyst for Resource Growth

Anson’s recent approval to re-enter the Mt Fuel-Skyline Geyser 1-25 well at its Green River Project marks a pivotal step in its resource development strategy. By reactivating historical wells, the company avoids the time and cost associated with greenfield drilling while capitalizing on known geological potential. According to a report by Discovery Alert, the U.S. Bureau of Land Management granted this approval in record time, contrasting with the prolonged permitting delays previously encountered at Anson’s Paradox Lithium Project [1]. This shift to brownfield operations not only accelerates timelines but also aligns with investor priorities for ESG-compliant projects, as re-entry minimizes environmental disruption [1].

The geological rationale for re-entry is compelling. Historical data from the Mt Fuel-Skyline Geyser well reveals salt concentrations comparable to the high-grade Bosydaba#1 well, alongside high-permeability rock formations such as the Ten Mile Graben. These characteristics are critical for lithium brine extraction, as they facilitate efficient flow rates and sustained reservoir pressure—a key factor in long-term project economics [1]. Recent drilling results further validate this approach: a 44% increase in lithium values was observed after aquifers were opened, with test work on diamond core samples revealing high porosity and fracturing in limestone and dolomite units [2]. Such findings suggest a robust resource base that could support scalable production.

Technological Advancements: Enhancing Recovery and Purity

Anson’s collaboration with Koch Technology Solutions has demonstrated the transformative potential of Direct Lithium Extraction (DLE) technology. A pilot program conducted in March 2025 achieved a 98% lithium recovery rate and a 99% impurity rejection rate, far exceeding industry benchmarks [3]. The resulting lithium-to-total dissolved solids (Li:TDS) ratio of 0.129—well above the target of 0.08—highlights the project’s ability to produce battery-grade lithium carbonate equivalent (LCE) at 99.95% purity [3]. These metrics are not just technical milestones; they directly impact capital and operating costs by reducing the need for costly downstream processing.

The economic implications of DLE adoption are profound. Traditional lithium extraction methods, such as evaporation ponds, require extensive land use and lengthy processing times (often 12–18 months). In contrast, DLE enables rapid, closed-loop extraction with minimal water consumption, aligning with global sustainability trends and regulatory pressures. For Anson, this technology reduces the risk of project delays and enhances margins by streamlining the path to commercial production.

Regulatory and Financial Milestones: A Path to Commercialization

The BLM’s swift approval of the Mt Fuel-Skyline Geyser re-entry is more than a procedural win—it is a strategic validation of Anson’s approach. As noted in a recent announcement, this approval allows the company to advance its Definitive Feasibility Study and secure financing through the U.S. Export-Import Bank (EXIM) [1]. A JORC Resource estimate, expected to follow from this work, will be critical for attracting institutional capital and de-risking the project for lenders.

Investors should also note the broader context: Anson’s June 2025 JORC Resource declaration for the Green River Project marks the first step in converting its large Exploration Target into a defined resource [3]. This transition is essential for project financing, as JORC-compliant resources are a prerequisite for bankability in the mining sector. With the Paradox Basin already recognized as a lithium-rich region, Anson’s ability to rapidly expand its resource base positions it to capitalize on the basin’s untapped potential.

Investment Implications: Balancing Risk and Reward

While Anson’s progress is promising, investors must weigh the risks inherent in junior mining projects. The company’s reliance on a single asset (Green River) and its dependence on third-party technology (DLE) introduce operational and technical uncertainties. However, the strategic advantages of re-entry drilling, combined with the project’s geological robustness and high-purity output, mitigate many of these risks.

From a valuation perspective, Anson’s market capitalization remains modest relative to its peers, reflecting its early-stage status. Yet, the potential for rapid resource growth and low-cost production could drive significant upside. The company’s focus on ESG-aligned practices—such as reusing infrastructure and minimizing water use—also enhances its appeal in a market increasingly prioritizing sustainability.

Conclusion: A Strategic Play on Lithium’s Future

Anson Resources’ strategic drilling programs exemplify how innovation, regulatory agility, and geological insight can transform a junior explorer into a key player in the lithium sector. By leveraging re-entry drilling to accelerate resource definition, adopting DLE to optimize recovery and purity, and securing critical regulatory approvals, the company is laying a solid foundation for commercial success. For investors seeking exposure to the lithium boom, Anson’s Green River Project offers a compelling case study in how strategic execution can unlock value in a high-demand, low-supply environment.

**Source:[1] Anson Resources (ASX - Green River Lithium Project,
https://discoveryalert.com.au/news/anson-resources-green-river-lithium-approval/[2] 44% Higher Li Values at Green River after Aquifers Open Up,
https://www.listcorp.com/asx/asn/anson-resources-limited/news/44-percentage-higher-li-values-at-green-river-after-aquifers-open-up-3202178.html[3] American Critical Minerals Highlights Recent Positive Developments in Close Proximity to Its Green River Potash and Lithium Project,
https://lubbockonline.com/press-release/story/2888/american-critical-minerals-highlights-recent-positive-developments-in-close-proximity-to-its-green-river-potash-and-lithium-project-reinforcing-the-potential-of-the-project/