MAN firms up drill targets at its US lithium project
Mandrake Resources (ASX: MAN) just got its hands on 3D seismic data at its US lithium project.
MAN is looking to develop its lithium brine project in Utah USA, next door to $210M capped Anson Resources.
Similarly to Anson, MAN’s strategy is to re-enter existing oil and gas wells, sample for lithium and define a JORC lithium resource.
For context - Anson put together its ~1.04Mt lithium carbonate equivalent resource estimate by re-entering only a handful of old oil and gas wells.
Today MAN acquired ~181 km^2 of 3D seismic data adding to its database of historic well data.
Ultimately the 3D seismic data will help MAN workout the sweet spots of any lithium reservoir’s underground and help with the JORC resource estimation process.
The 3D seismic data sits in and around the two wells MAN has selected as its first re-entry options.
The next step before MAN can get on the ground is to take official operatorship of the two wells - this is predominantly a paperwork exercise for the company.
Off the back of the re-entry program we are hoping MAN can deliver a lithium resource estimate of size/scale comparable to Anson Resources which forms the basis for our MAN Big Bet which is as follows
Our Man Big Bet:
“MAN returns 1,000%+ by making a lithium discovery significant enough to move into development studies, or attract a takeover offer.”
NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved, and it will require a significant amount of luck. There is no guarantee that it will ever come true. Some of these risks we list in our MAN Investment Memo.
What’s next for MAN?
Maiden exploration target 🔄
We are looking forward to MAN putting out an exploration target for its project.
Lithium sampling program 🔄
Once the exploration target is confirmed, it will be all about progressing the work needed to convert that exploration target into a maiden JORC resource estimate (e.g. sampling existing wells and potentially drilling a new well).
