Mandrake Resources Unveils Major Advancements in Utah Lithium Project
MAN (MAN) Share Update September 2024 Tuesday 17th
Mandrake Resources Announces Promising Developments in Utah Lithium Project
Mandrake Resources Limited (ASX: MAN) has announced noteworthy advancements in its Utah Lithium Project, highlighting the potential for substantial lithium resources and strategic partnerships aimed at bolstering the U.S. critical minerals supply chain.
Instant Summary:
- Mandrake Resources has a 100%-owned large-scale lithium brine asset in Utah.
- The company has secured a $1 million grant from the U.S. Department of Energy.
- Exploration Target estimate ranges from 1.7 to 5.6 Mt of Lithium Carbonate Equivalent (LCE).
- Partnerships with Idaho National Laboratories, National Renewable Energy Laboratory, and University of Utah.
- Brine sampling shows exceptional lithium concentrations up to 147mg/L.
Project Overview
Mandrake Resources Limited has made significant strides in its Utah Lithium Project, a 100%-owned large-scale lithium brine asset. The project, which spans 93,755 acres, is strategically located in a prolific oil and gas producing area with outstanding infrastructure, including nearby rail, road, power, and water facilities.
The project aims to leverage existing oilfield brines, which have shown high lithium concentrations, to produce battery-grade lithium hydroxide. This initiative aligns with the U.S. government's efforts to secure a domestic supply of critical minerals, reducing reliance on foreign sources.
Exploration and Resource Estimates
Mandrake Resources has reported an Exploration Target estimate of between 1.7 and 5.6 Mt of Lithium Carbonate Equivalent (LCE), prepared in accordance with the 2012 edition of the JORC Code. This estimate is based on extensive geological data, including over 150 well logs and 3D seismic surveys.
Brine sampling from five wells has revealed exceptional lithium concentrations, with values reaching up to 147mg/L. Additionally, the project has identified significant concentrations of bromine and potassium, which could represent valuable by-products.
Strategic Partnerships and Funding
Mandrake Resources has secured a $1 million grant from the U.S. Department of Energy, partnering with Idaho National Laboratories, National Renewable Energy Laboratory, and the University of Utah. These collaborations will provide access to leading U.S. scientists and advanced laboratory facilities.
The company has also signed a Lithium Brine Supply Agreement with Electroflow Technologies, a U.S.-based company funded by Bill Gates' Breakthrough Energy Fellows. This agreement will support the development of pilot plants to process Mandrake's lithium brines.
Future Prospects
Mandrake Resources is poised to release a JORC (2012) Mineral Resource Estimate in Q3 2024. The company is also exploring additional government funding opportunities and offtake discussions to further advance the project.
The Utah Lithium Project's strategic location, coupled with its promising resource estimates and strong partnerships, positions Mandrake Resources as a key player in the U.S. lithium supply chain.
The advancements in Mandrake Resources' Utah Lithium Project are likely to have a positive impact on the company's stock. The significant lithium resource estimates and strategic partnerships with leading U.S. institutions could boost investor confidence and attract further investment. The project's alignment with U.S. government initiatives to secure domestic critical minerals supply may also enhance its appeal to investors.
Investor Reaction:
Analysts are expected to react positively to Mandrake Resources' announcement, given the project's substantial resource potential and strategic partnerships. The secured funding and collaboration with top U.S. laboratories are likely to be viewed as strong endorsements of the project's viability and potential for success.
Conclusion:
Investors should keep a close eye on Mandrake Resources as it progresses with its Utah Lithium Project. The upcoming release of the JORC (2012) Mineral Resource Estimate and potential for further funding and offtake agreements could provide significant growth opportunities. Stay informed on Mandrake Resources' developments to make well-informed investment decisions.