It is a significant development for its Paradox lithium brine project in Utah and a much needed win for the junior after the re-entry of the Gold Bar Unit 2 well, 5km to the south, returned lithium levels far below other historic samples in the Paradox Basin, causing Anson's shares to tank.

 

The brine at Cane Creek flowed to surface from Clastic Zone 29, located about 2185m deep, at 113 litres per minute over a six-hour testing period, and was increasing over the testing period until the well was plugged.

 

The pressure environment was similar to the Long Canyon-1 well, where lithium was assayed in brines at 500 parts per million, in the 1960s. 

 

The engineer on that well estimated that, based on a 3.5-inch collar, Long Canyon-1 could flow at 50,000 barrels per day. 

 

Initial estimates using weight confirmed the Cane Creek brine is supersaturated, likely with lithium, bromide, iodine, magnesium and other minerals that could be extracted as by-products.

 

A similar supersaturated brine containing high grades of lithium was sampled at White Cloud-2, which has 1700 parts per million, one of the highest results in the basin, above the average of 500ppm.

 

The proof of a high pressure environment at Cane Creek could reduce the need for pumping and would provide a significant saving in operating costs if it does not deplete substantially under longer term testing.

 

While full pressure testing could not be performed well due to time constraints, the indications of high pressure at similar depths could indicate that the clastic zones between the two areas are connected. 

 

Long Canyon and White Cloud are 3km south of Cane Creek, while Gold Bar is 5km to the south.

 

Anson believes the reason the highest sample at Gold Bar was 27ppm could be the presence of cross-cutting structures, stopping the formation of lithium traps. 

 

In recent days Anson has also moved to consolidate its ground north of Gold Bar, by staking two additional claims just 40m from Long Canyon-1 and 90m from White Cloud-2, and 140m east of the e Roberts Rupture structure, which is thought to provide natural fracturing of the host rock allowing the flow of fluids.

 

Anson said one of the areas could host drilling later this year.

 

Using samples collected from Cane Creek Anson hopes to produce its first lithium carbonate this quarter. 

 

Shares in Anson, which tumbled from a peak of A28c in January to 4.9c on news of Gold Bar's disappointing results, was up 52% to 7.6c this morning, capitalising the company at $31 million.