Mandrake Resources Limited (ASX: MAN) has secured over 56,000 acres of lithium brine prospective ground in the Paradox Basin in Utah in the USA.
The lithium brine land tenure comprises:
1. 34,670 acres of leases pursuant to an Other Business Agreement (OBA) with the Utah School and Institutional Trust Lands Administration (SITLA), the organisation which manages the Utah State Government’s trust lands and mineral rights.
2. Over 1,000 claims have been acquired on Bureau of Land Management (BLM) land which totals over 21,383 acres. Claim staking has targeted the most prospective lithium brine areas in the Paradox Basin.
A global review undertaken by Mandrake of several lithium assets and numerous lithium hard-rock, clay and brine prospective areas throughout the world identified the Paradox Basin in the United States as the most attractive opportunity for the Company to successfully develop a world-class lithium project.
The Utah Lithium Project was generated by Mandrake internally meaning there is no vend or acquisition cost to reduce Mandrake’s cash position or dilute its existing shareholders.
The Paradox Basin in the south-eastern Utah ‘lithium four corners’ area hosts hypersaline brine historically documented to contain significant concentrations of lithium, boron, potassium salts (potash) and other elements.
The United States’ biggest potash producer, Intrepid Potash operates the Cane Creek potash mine which is located approximately 50km to the north west of the Utah Lithium Project whilst mid-tier ASX-listed lithium developer Anson Resources is located approximately 60km north west
“Mandrake has organically secured a potentially world-class lithium project in the heart of the US, at a time when the US federal government is actively funding and supporting domestic sources of strategic and critical materials such as lithium,” Managing Director, James Allchurch, said.
“Utah is among the most mining and investment friendly jurisdictions in the US with the State Government heavily involved in aiding Utah-based projects play a role in the global energy transition from fossil fuels to renewable energy.
“Our 100%-owned Utah Lithium Project comprises over 56,000 acres of prime lithium brine- prospective ground in the Paradox Basin in proximity, and incorporating, a multitude of purposes of sampling and eventual production.
“The Paradox Basin includes nearby operators such as lithium developer Anson Resources (ASX: ASN), who have a Mineral Resource of over 1MT of Lithium Carbonate Equivalent at an average grade of 124mg/L Li1, as well as the biggest potash producer in the US, Intrepid Potash.
“The opportunity presented by Mandrake’s large-scale Utah Lithium Project is clearly recognised by ASX lithium developer Galan Lithium Limited who are investing A$1.5M for a 5% stake in Mandrake and will be involved in the project on an ongoing basis in a technical advisory capacity.
“Mandrake will leverage the significant technical work already undertaken over the preceding months to move rapidly into exploration as we head towards the company’s maiden lithium Resource.”
For further information please visit: https://www.mandrakeresources.com.au/