PERTH (miningweekly.com) – The Paradox lithium project, in Utah, would require a capital investment of $495-million, ASX-listed Anson Resources said on Thursday.

A definitive feasibility study (DFS) estimated that Phase 1 of the project could produce some 13 074 t/y of high purity lithium carbonate, delivering revenues of some $5.05-billion over its 23 years of operation.

C1 operating costs have been estimated at $4 368/t of lithium carbonate, with average annual earnings before interest, tax, depreciation and amortisation estimated at $153-million.

The DFS estimated that the Phase 1 project would have a post-tax net present value of $922-million and an internal rate of return of 37%, with a post-commissioning pay-back period of two years.

“We are very excited to deliver the Paradox Lithium Project Phase 1 DFS to market. The DFS confirms the technical and financial viability of a major new source of high purity Lithium Carbonate available for the rapidly growing US market,” said Anson executive chairperson Bruce Richardson.

“The project delivers industry leading environmental and social governance credentials based on direct lithium extraction utilising Sunresin technology using lower energy and water consumption, and with spent brine being reinjected back into the Paradox.

“Significantly, there remains material upside beyond the DFS announced today based on future mineral resource upgrades associated with the recently completed drilling campaign at Cane Creek and the future Western Expansion drilling campaign, as well as incorporating Bromine production into stage 2.”

Phase 2 development at Paradox to comprise further substantial increase in lithium production capacity, together with Bromine production capacity. Phase 2 capital costs proposed to be fully funded from free cash flow generated from Phase 1 operations.

The Phase 1 economics is based on an indicated mineral resource of 239 000 t, and the economics of the DFS could be updated in future based on future mineral resource upgrades.