Utah Lithium Project Shows 59m Net Pay Thickness with 3.3Mt LCE Resource

Significant Lithium Brine Potential in Utah

Mandrake Resources Limited (ASX, MAN) has revealed promising new data from its 100%-owned Utah Lithium Project, located in the Paradox Basin. Detailed analysis of the Paradox Formation, a geological unit known for its complex salt and clastic layering, has identified lithium concentrations reaching as high as 340mg/L within key clastic zones. This level of lithium concentration positions the project alongside some of the world’s most renowned lithium brine deposits.

The company’s recent petrophysical study, which examined data from over 22 historical oil and gas wells, found an average net pay thickness of 59 metres in Zones A and B of the Paradox Formation. This thickness is a critical metric, indicating the volume of porous rock capable of hosting lithium-rich brines. Such a substantial net pay thickness suggests the presence of significant lithium brine volumes, reinforcing the project's scale and commercial potential.

Resource and Strategic Positioning

Mandrake’s Utah Lithium Project boasts an inferred resource estimate of 3.3 million tonnes of Lithium Carbonate Equivalent (LCE), a figure that underscores its standing as a top-tier lithium asset within the United States. The project’s geological setting draws comparisons to the Smackover Formation on the Arkansas/Texas border and the Lithium Triangle in South America, both globally recognised for their high-grade lithium brines.

Located in a pro-mining jurisdiction with access to Tier 1 infrastructure such as power and water, the project benefits from a supportive regulatory environment. This is particularly relevant as the US government intensifies efforts to secure domestic supplies of strategic minerals like lithium, essential for electric vehicle batteries and renewable energy storage.

Ongoing Modelling and Future Work

Mandrake is advancing a comprehensive Brine Flow Modelling Study to better understand lithium distribution and flow within the Paradox Formation. This modelling will help pinpoint optimal drilling locations and evaluate the potential for re-entering existing wells. The company anticipates releasing further results shortly, which could refine resource estimates and development plans.

While Mandrake has yet to undertake its own drilling, it leverages historical oil and gas wells for sampling and geological data. This approach provides a cost-effective means to assess lithium potential but also introduces some limitations regarding data precision and continuity. Future drilling campaigns will be critical to validate and expand upon these findings.

Financial Health and Broader Exploration

As of June 2025, Mandrake reported a strong cash position of $13.3 million with no debt, providing a solid financial foundation to progress its lithium project and explore additional precious and base metals opportunities. The company continues to evaluate other assets both within the US and internationally, aiming to enhance shareholder value through strategic diversification.

Mandrake’s leadership, including Managing Director James Allchurch, remains confident in the project’s potential to emerge as a significant lithium brine producer, contributing to the growing demand for critical minerals in the energy transition.