Mandrake Surges on Prospect of Battery-Grade Lithium Hydroxide Production from Utah Project

Mandrake Resources Ltd (ASX: MAN) is trading around 10% higher today at $0.035 on high volume following successful test results.

Even with today’s positive re-rating, Mandrake is lightly capped at $22 million, and with $15 million in the bank and no debt, the enterprise value is just $7 million.

Results

Rio Tinto Ltd (ASX: RIO) backed direct lithium extraction and refining company, ElectraLith, has successfully produced 99.9% pure battery-grade lithium hydroxide from Mandrake’s Utah Project.

This was completed using its cutting-edge DLE-R process.

Requiring no water or chemicals, the process has greatly enhanced the potential of the project.

A maiden mineral resource for the Utah Project is well advanced.

Why is this important

The production of battery-grade lithium hydroxide direct from brine revolutionises the direct lithium extraction by skipping the conventional interim step of producing lithium carbonate.

This is costly and carbon intensive.

Mandrake and ElectraLith are now progressing a strategic partnership agreement to facilitate the construction of a pilot facility at the project.

Strategic location

Mandrake wholly-owns the Utah Project, which is located in the Paradox Basin of the United States.

The Paradox Basin in the south-eastern Utah ‘lithium four corners’ area hosts hypersaline brine historically documented to contain significant concentrations of lithium, boron, potassium salts and other elements.

The country’s biggest potash producer, Intrepid Potash (NYSE: IPI), operates the Cane Creek potash mine which is located 50 kilometres to the north-west of the Utah Project.

Anson Resources Ltd (ASX: ASN) is located 60 kilometres away.

 

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