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Paradox Basin Project: The New Lithium
Province November2017
LowEmission&TechnologyMineralsConference
ASX:ASN
2
DisclaimerTheinformaConcontainedinthisconfidenCaldocument("PresentaCon")hasbeenpreparedbyAnsonResourcesLimited(the"Company").IthasnotbeenfullyverifiedandissubjecttomaterialupdaCng,revisionandfurtheramendment.TheInformaConmanynotbedistributedtoothersatanyCmewithoutthepriorwriRenconsentoftheCompany(includingthepresentaCon)anycopiesthereof,andwilldestroyallanalysis,complicaConsandotherdocumentsorwriCngswhatsoevercontainingorreflecCnganysuchmaterial.WhiletheinformaConcontainedhereinhasbeenpreparedingoodfaith,neithertheCompanynoranyofitsshareholders,directors,officers,agents,employeesoradvisersgive,havegivenorhaveauthoritytogive,anyrepresentaConsorwarranCes(expressorimplied)asto,orinrelaConto,theaccuracy,reliabilityorcompletenessoftheinformaConinthisPresentaCon,oranyrevisionthereof,orofanyotherwriRenororal informaConmadeor tobemadeavailable to any interestedpartyor its advisers (all such informaConbeing referred to as "InformaCon") and liability therefore is expresslydisclaimed.Accordingly,neithertheCompanynoranyofitsshareholders,directors,officers,agents,employeesoradviserstakeanyresponsibilityfor,orwillacceptanyliabilitywhetherdirectorindirect,expressorimplied,contractual,tortuous,statutoryorotherwise,inrespectof,theaccuracyorcompletenessoftheInformaConorforanyoftheopinionscontainedhereinorforanyerrors,omissionsormisstatementsorforanyloss,howsoeverarising,fromtheuseofthisPresentaCon.NeithertheissueofthisPresentaConnoranypartofitscontentsistobetakenasanyformofcommitmentonthepartoftheCompanytoproceedwithanytransacConandtherightisreservedtoterminateany discussions or negoCaCons with any prospecCve investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connecCon with any appraisal orinvesCgaConoftheCompany.InfurnishingthisPresentaCon,theCompanydoesnotundertakeoragreetoanyobligaContoprovidetherecipientwithaccesstoanyaddiConalinformaConortoupdatethisPresentaConortocorrectanyinaccuraciesin,oromissionsfrom,thisPresentaConwhichmaybecomeapparent.This PresentaCon should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party towhom thisPresentaConismadeavailablemustmakeitsownindependentassessmentoftheCompanyaXermakingsuchinvesCgaConsandtakingsuchadviceasmaybedeemednecessary.InparCcular,anyesCmatesorprojecConsoropinionscontainedhereinnecessarilyinvolvesignificantelementsofsubjecCvejudgment,analysisandassumpConsandeachrecipientshouldsaCsfyitselfinrelaContosuchmaRers.ThisPresentaConincludescertainstatementsthatmaybedeemed“forward-lookingstatements”.Allstatementsinthisdiscussion,otherthanstatementsofhistoricalfacts,thataddressfutureacCviCesandeventsordevelopmentsthattheCompanyexpects,areforward-lookingstatements.AlthoughtheCompanybelievestheexpectaConsexpressedinsuchforward-lookingstatementsarebasedonreasonableassumpCons,suchstatementsarenotguaranteesoffutureperformanceandactualresultsordevelopmentsmaydiffermateriallyfromthoseintheforward-lookingstatements.Factorsthatcouldcauseactual results to differmaterially from those in forward-looking statements includemarket prices, conCnued availability of capital and financing, and general economic,market or business condiCons.Investors are cauConed that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-lookingstatements.CompetentPerson’sStatementTheinformaConinthispresentaConisanaccuraterepresentaConoftheavailabledataandstudiesforthedepositreviewedbyMrGregKnox(MAusIMM),aDirectoroftheCompany.MrKnoxhasover25yearsofexploraConandminingexperienceinavarietyofmineraldepositstyles.MrKnoxhassufficientexperiencewhichisrelevanttothestyleofmineralisaConandtypeofdepositunderconsideraConandtotheacCvitywhichheisundertakingtoqualifyasaCompetentPersonasdefinedinthe2012EdiConofthe“AustralasianCodeforreporCngofExploraConResults,MineralResources.
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CorporateOverview
TopShareholders (Total shareholders 1596)
ZhongfanGroup 6.25%
BRichardson 5.45%
GKnox 3.30%
MKlein 2.93%
BMcLeod 2.27%
LiXiao 1.99%
WoWahInd, 1.99%
500,000opCons-exerciseprice5.5centsonorbefore21September2018121MillionopCons–exerciseprice2.5cents–onorbeforeAugust2018 AnsonResearch:11Nov2017
CapitalStructure
SharesonIssue 321M
SharePrice 15.5cents
OpConsonIssue 122M
MarketCapitalisaCon $49.7M
NetCashandQuotedEquiCes $1.6M
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Directors
Peter(Greg)KnoxB.Sc.(Geology)–NonExecuBveDirector
§ MrKnoxisaqualifiedgeologistwithover30yearsofexperienceinexploraCon,minedevelopmentandminingoperaCons
§ Hehasworkedonprojectsfromgrass-rootsexploraConthroughtominedevelopmentandproducCon
BruceMcLeod,B.Sc.(Maths),M.Com(Econ)-NonExecChairman
§ Experiencedpubliccompanydirector
§ >25yearsexperienceintheAustraliancapitalmarkets
§ Corporatefundingexperienceinresourcesandpropertyindustries
§ ExtensiveexperienceinthetakeoverandraConalisaConofcompanies
BruceRichardson,B.A(Hons)-ManagingDirector
§ Proventrackrecordof9yearsinexploraCon,miningandproducConinpublicandprivatecompanies
§ >30yearsofinternaConalbusinessexperience,parCcularlyChina
§ Inthepastfewyearshasraisedover$170milliondollarsofinvestmentinminingprojects
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ParadoxBrineProject–Overview
§ 291placerclaimswithanareaof5,767acres(23.3squarekilometres)
§ LongCanyonNo.1operaCngwellwithknownbrinevalueof500ppmfromClasCcZone31at6,013feet(800metresfromclaims)
§ WhiteCloudNo.2withknownbrinevalueof1,700ppmfromClasCcZone31at6,015feet(100metresfromLongCanyonNo.1)
§ 8.9kmstrikelengthalongRobert’sRupturewithintheParadoxBasin
Source:UDSopenfiledata
Well/ppm Li Br B I Mg
LongCanyon1 500 6,100 n/a 300 21,000
WhiteCloudNo.2 1,700 2,500 20,000 450 43,600
BigFlatUnit2 173 1,150 2,922 47,789
Knownhistoricalassayresultsoutsidetheprojectarea
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TheFourCorners-ANewLithiumProvince
§ MulCpleexploraConcompaniesinthe4corners“NewLithiumProvince”:
§ VoltaicMinerals§ MGX§ Americanpotash§ LibertyOne§ USCobalt§ PowerMetals§ StandardLithium
§ AnsonstrategicallylocatedinthedeepestpartoftheParadoxBasin
§ BrinesknowntoexistthroughouttheParadoxBasinwhich
coversanarea33,000squaremiles(85,470km2)
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FourCornersLithiumExplorers
Company Acres TargetAnsonResources 5,767 LiBrines
LibertyOne 4,480 LiBrines
VoltaicMetals 4,160 LiBrines
USCobalt 2,220 LiBrines
PowerMetals NK LiBrines
AmericanPotash NK Li,Potash
MGX 118,000 Li/OilBrines
Utah
NewMexicoArizona
Colorado
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UtahisaWorldClassMiningJurisdicCon
§ KnownMiningandOil&GasjurisdicCon,GrandCountyUtah,USA
§ MineralMinesinUtahMarch2015 § approximately200differentmineralsminedinUtah
§ 600permiRedmineraloperaConsstate-wide
§ Utahranks5thinthevalueofnon-fuelmineralproducConintheU.S§ accounCngforapproximately5.4percentoftheUnited
Statestotal*
*2014datafromtheU.S.GeologicalSurvey
TheKennecoRCopperMine,Utah
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ParadoxBrineProject–Advantages
HistoricData:
§ Extensivedatabaseavailable
§ Historicseismicdata
§ Localdrillholedata
§ ExisCnghistoricalwells
§ Highgradeunderexploredbrines
§ Suitableinfrastructureinplace
LocaBon:
§ TeslaGigafactory11hrdrive
§ 15kmwestofMoab
§ 4kmnorthwestofoperaCngpotashmine
TeslaGigafactory
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ParadoxBrineProject–Infrastructure
§ Closeproximitytokeyinfrastructure:
§ InterstateHighway
§ Railway
§ PowerLine
§ GasLine
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ParadoxBasin
§ AlargePennsylvanian-agemarinebasin
§ BasinincludesathickseriesofmarineevaporitedepositsthatdefinetheParadoxFormaCon
§ Comprisedofupto29salt-evaporitesequencesseparatedbyinterveningclasCcbeds
§ TheclasCclayerscanbeporousandpermeable
§ FuncConasbrineaquiferhostbeds
§ Super-saturatedbrinesflowedtosurface(artesianflow)
§ Lithium-richbrineshavepreviouslybeensampledinthearea
LongCanyon#1GeophysicalLogs:Geology&BrineHorizons
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ParadoxBrineExploraCon
ExploraBon:
§ Drill-testandevaluatesupersaturatedbrines:
§ DetermineconcentraConsofspecificbrineaquifers
§ TestforLi,B,Br&I
Development:
§ Determinebrinegeochemistryandaquiferparameters
§ Flowrates,rechargerates,porosityandpermeability
§ IdenCfyviaexploraConwelldrilling
ProducBon:
§ DevelopbrineextracConwells
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PeerProjectComparison–ppmvalues
Source:CanaccordGenuityresearch
1700
1400
340
200 200 160 1600
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400
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800
1000
1200
1400
1600
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ParadoxBasin(Utah)(WC#2)
Atacama(Chile) BonnieClaire(Nevada)
CalytonValley(Nevada)
Uyuni(Bolivia) BigSmokeyValley(Nevada)
HombreMuerto(ArgenCna)
ppmvalue
sPeerProjectComparison–HighestppmValues
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HistoricLithiumGrades
Well ClasBcZone31Lilevel
BigFlatUnit2 173ppm
LongCanyon1 500ppm
WhiteCloud 1700ppm
Averagegrade 791ppm
Averagethickness 25X.
Well ClasBcZone17Lilevel
SuperiorOil 339ppm
PureOil1 134ppm
Averagegrade 237ppm
Averagethickness 35X.
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ParadoxBrineProject–CharacterisCcs
Robert’sRupture’sSignificance:
§ CausedfracturingofrockformaConstoover7,000Xindepth
§ Increasespermeabilityandporosity
§ Promotesfluidmobility
§ FractureandalteraConisvisibleatsurface
LongCanyonNo.cu\ngs1:500ppmGradeandCharactersBcstobeConfirmed-Resampling
SimplifiedStraCgraphicSequence
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Depth:§ Claimareasareoverthedeepestpartofthe
ParadoxBasin
§ BrinesconcentrateinthedeepestpartoftheClasCcZone31
HighPressure:
§ Highlypressurized(4,953psi),approximatelydoubleexpectedpressureatthisdepth
§ Mineralizedbrineatthemaintargetzone(ClasCc31)isexpectedtoflowfreely
Temperature:§ Temperatureincreasesinlinewithdepth§ Theuniquepressurizedbrinerisestothe
surfacealreadyheatedto600C(1400F)§ Usuallyexpected400C(1000F)
ParadoxBrineProject–IsopachMaps
IsopachmapshowingthedepthsofClasCcZone31increasingtothenortheast
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ParadoxBrineProject–SW-NECrossSecCon
§ ClasBcZone31isthemaintargethorizon(boldredline)§ CrosssecConshowsthelocaConofAnson’sre-entryandtheLongCanyonNo.
1wellwith500ppmandotherstrategictargets§ ClasCcZones17,19,21&29havepreviouslyrecordedbrineflows(redlines)
§ Highlypressurized(4,953psi),approximatelydoubleexpectedpressureatthisdepth
§ Theuniquepressurizedbrinerisestothesurfacealreadyheatedto600C(1400F)
§ Usuallyexpected400C(1000F)
AnsonRe-EntryGoldBar2
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ClasCcZone31Cuxngs-GeologicalSummary
Depth of Intersection (feet) Comments
7050 – 7060 Salt with 5% anhydrite
7060 – 7070 50% anhydrite, 20% dolomite, 30% black shale and siltstone, probable top of Clastic #31
7070 – 7080 60% anhydrite, 30% black shale and siltstone, 10% salt, Clastic #31? (small, poor sample)
7080 – 7090 60% anhydrite, 30% black shale and siltstone, 10% salt, Clastic #31? (small, poor sample)
7090 – 7100 Light pinkish-brown salt with 10% anhydrite
DrillcuxngsfromGoldBarUnit2–ClasCcZone31interval
§ GoldBarUnit2cuxngs
§ ObtainedfromUSgeologicalSurveyCoreResearchCentre
§ QAQCcheckscarriedouttoconfirmcorrectintervals
§ Samplesmustbe“lagged”tomatchintervalfromelectriclogs
§ Lithologyofthecuxngsareshownintablebelow
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ClasCcZonePetrographicWork
§ ClasCcZone31§ Darkbrown,organicrichlaminatedfragments§ ScaReredvugsfilledwithanhydriteorsilica,§ MicriCclimestonefragments§ DolomiCcandanhydrite-richfragments
§ Theporosity(P)developedwhenthedolomite(D)replacedorganic-richmicrite(M)andgypsum
§ ClasCcZone29:§ SimilarlithologytoClasCcZone31§ Moreorganicrichfragments§ Higherporosity
ThinsecCon
PPL,100*
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GoldBarUnit2Re-entryPlan
§ GoldBarUnit2welldrilledforoiltoadepthof9,682feet
§ ClasCc31intersectedat7,080feet
§ Brineswasrecordedbutnotassayed
§ Makeoverrigtobeusedtore-enterthewellandtakebrinesamplesfortesCngforlithiumandotherminerals§ Li,B,Br,I,Mg
§ AddiConalbrinesfromseveralclasCclevelstobesampled§ ClasCcZones17,19&29
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DrillingProgram–Re-entry
WellDesigncompletedbySRK:
§ DrillholedesignofcompletedGoldBar#2(incorporates):
§ Totalwelldepth
§ ProducConcasingandtubingsizerequirements
§ ExpectedboRomholepressureandassociatedcasingdesignandBOPrequirements
§ Bitandmotorhydraulics
§ Drillingmudandmudsystemrequirements
§ PotenCallostcirculaConzones
§ Drillingrigrequirements(includingairdrilling,aswarranted)
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DrillingProgram–MulCpleClasCcZonestoSample
§ Drilleachcementplug
§ Pressuretestcasing
§ RuncasinginspecConlog
§ Circulatecasingscrapertocleancasing
§ Insertpacker
§ Perforatecasingatdesireddepth:
§ SampleboRomtotop:
§ 7080ClasCcZone31§ 7020ClasCcZone29§ 6334ClasCcZone19§ 6205ClasCcZone17
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FutureDrillingProgram
§ Futuredrilltargetsalreadyplanned
§ 4sitesselected:
§ AllclosertoRobertsRupture
§ Noaccessissues
§ Surveyscompletedonallsites
§ Cultural
§ Biological
§ Paleontological
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FutureDrillingProgram
§ Drillingpermitrequirementscompleted
§ DrillingPrognosisfornewwells
§ Casingdesign
§ DrillrigsalreadyintheMoabarea
§ Reducesmob/demobcosts
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UpcomingEvents
ClasticZone Depth(ft) Thickness(ft) Comment
3 4560 110.5
5 4930 76.5
7 5170 67.25
9 5410 34.75
11 5600 74.5
13 5968 19
15 6090 5.5
17 6205 35.25 ConfirmedSupesaturatedBrine
19 6334 34.5 ConfirmedSupesaturatedBrine
21 6580 55.5
23 6680 15.25
25 6720 25
27 6870 19.75
29 7020 14.75 ConfirmedSupesaturatedBrine
31 7080 24.5 MainTargetZone33 7270 10.5
35 7320 6
37 7598 8.75
39 7830 40
41 8018 25
43 8266 82.25 ConfirmedSupesaturatedBrine
45 8370 16.75
47 8440 8.33
49 8560 8.33
§ BLMapprovalexpectedinNovember
§ DrillingcommencinginDecember
§ BrinesamplinginJanuary
§ AssayingofsamplesincerCfiedlabinNevada
§ BulksamplesenttoOutotecforbenchtoptesCng
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ParadoxBrineProject–FastTrackToProduct
Stage1Drillingprogram
Stage2Labbasedmetallurgicaltest
work
Stage3In-fieldpilotplant
MetallurgicalTestWorkandPlantDevelopmentPlanEsCmates
ParadoxBrineProject-OnTracktoProduct Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Sep-18 Dec-18 Jun-19
Stage1
PermitprocessforGB2wellre-entry ü ü
Drillingprocessmobiliseandcommence,GB2wellre-entry
BrinesampleassaysandtransportaContotestlab
Stage2
Brinemetallurgicaltestworkforlabbasedpilotplant
LithiumcarbonateproductqualificaContestcommence
Stage3
In-fieldpilotplantdesignandconstrucCon
Commissioning
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MarketCapinUS(AUD$Millions)
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LithiumBrinePeers–MarketCapitalisaConUpside
Source:AnsonResearch10Nov2017
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MarketCapoutsideofUS(AUD$Millions)
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AddiConalProjects–WesternAustralia
§ Ajana–Graphite&BaseMetals:
§ LeadresourcejustupgradedtoJORC2012
§ Basemetalsandgraphite:
§ 31VTEMtargetstotest
§ Soilanomaliesthroughoutprojectareatobetested
§ 470kmnorthofPerth
§ HooleyWellNickel&Cobalt:
§ LateriCcNi-Co-Crdeposit:
§ CobaltmineralisaConoveranareaof1.5km*0.8km
§ HAC004,[email protected]%Ni,0.11%Co&1.99%Cr
§ Possibleprimarynickelsulphides(idenCfiedbyIPresponse)
§ 720kmnorthofPerth
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ParadoxBasinProject
ThankYou
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ContactDetails
BruceRichardsonManagingDirectorE:[email protected]:+61892260299
W:www.ansonresources.comtwiRer.com/anson_irLinkedin.hRps://www.linkedin.com/company/13357337/
