Unexpected Steel Blockage Forces Anson to Rethink Lithium Drilling Strategy

Anson Resources has secured regulatory approval for a revised drilling approach at its Mt Fuel-Skyline Geyser Well in Utah, overcoming unexpected blockages to advance lithium exploration.

  • Regulators approve modified drilling program using whipstock sidetracking
  • Original re-entry abandoned due to unrecorded steel blockages at 500 feet
  • New sidetrack well enables lithium brine sampling and geological cuttings collection
  • Revised plan utilises existing infrastructure, reducing additional costs
  • Data from new drilling expected to strengthen JORC lithium resource estimates
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Regulatory Green Light for Revised Drilling

Anson Resources Limited (ASX – ASN) has announced a significant development in its Green River Lithium Project, located in Utah, USA. The company received prompt approvals from the US Bureau of Land Management and the Utah Division of Oil and Gas for a modified drilling program at the Mt Fuel-Skyline Geyser Well. This revised plan follows challenges encountered during the original re-entry drilling, which was halted due to unexpected steel and other materials obstructing the wellbore at a depth of 500 feet.

Technical Challenges Prompt Innovative Sidetracking

The blockage, comprising unapproved materials not documented in the 1973 drilling logs, prevented further progress and control of the drill bit. After careful consultation with regulators, Anson abandoned the initial re-entry program and developed a new approach involving the insertion of a "whipstock" device. This technique will sidetrack the existing wellbore at approximately 450 feet, allowing a parallel well to be drilled to the target depth of around 10,000 feet.

Leveraging Existing Infrastructure to Manage Costs

Importantly, the revised drilling program capitalises on the existing well pad and infrastructure, including the original wellhead and blowout preventer, thereby minimising incremental costs. The sidetracked well will be drilled with a 6 1/4 inch diameter, sufficient for exploration and testing of lithium-enriched brines. This approach not only circumvents the blockage but also enables the collection of brine samples and geological cuttings from multiple target zones, which was not feasible under the original plan.

Implications for Lithium Resource Evaluation

Sampling and analysis of brines and cuttings will provide critical data on lithology, porosity, permeability, and other geological parameters. These insights are expected to enhance the classification and confidence of the JORC lithium resource estimate surrounding the Bosydaba#1 well, located 12 kilometres north. The project aims to convert a large exploration target into indicated and inferred resources, a key milestone for advancing towards production.

Strategic Positioning in a Growing Lithium Market

Anson’s Green River Lithium Project sits within the Paradox Basin, a geological setting known for lithium-bearing brines hosted in dolomite and limestone formations. The company’s ability to adapt its drilling strategy in response to unforeseen obstacles demonstrates operational resilience and regulatory cooperation. As global demand for lithium intensifies, successful exploration and resource upgrades at Mt Fuel-Skyline could position Anson as a notable player in the US lithium sector.

Bottom Line?

Anson’s innovative sidetracking approach could unlock critical lithium data, setting the stage for resource upgrades and future development.

Questions in the middle?

  • How will the sidetracked well’s assay results impact the overall JORC lithium resource estimate?
  • What are the potential cost and timeline implications of the revised drilling program?
  • Could similar blockages affect other wells in the Green River project, and how will Anson mitigate these risks?