The Anson Resources Ltd (ASX: ASN) share price has been an incredibly strong performer on Thursday.
At the time of writing, the lithium explorer's shares are up 35% to a record high of 40 cents.
Why is the Anson Resources share price rocketing higher?
Investors have been bidding the Anson Resources share price higher today following the release of an update on the company's Paradox Lithium project in Utah, United States.
According to the release, the definitive feasibility study confirms the project's "outstanding economics" and potential to become a major supplier of high purity battery grade lithium carbonate into the US electric vehicle market.
The company's phase one plan is expected to deliver a robust, low-cost operation with production of up to 13,074 tonnes per annum and revenues of US$5,080 million forecast over 23 years of operations.
This has resulted in a pre-tax net present value of US$1,306 million, with a post-commissioning payback period of two years and pre-tax IRR of 47%.
Management commentary
Anson Resources' Executive Chairman, Bruce Richardson, was pleased with the study. He said:
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.
The Project delivers industry leading ESG 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.
