Here's why ASX lithium stock Anson Resources is rocketing 10% today

This lithium stock has just released a promising update.

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Anson Resources Ltd (ASX: ASN) stock is in demand with investors on Thursday.

In morning trade, the ASX lithium stock is up 10% to 16 cents.

A man sees some good news on his phone and gives a little cheer.

Image source: Getty Images

Why are investors buying Anson Resources stock?

Investors have been buying the company's shares after it released an update on the Green River Lithium Project in the Paradox Basin in Utah, USA. This project covers an area of 106.2km squared and is situated just 50kms northwest of the company's Paradox Lithium Project.

According to the release, a detailed review of the project has confirmed its exceptional geological characteristics and high-level prospectivity.

Positive geological attributes include high recorded thickness of brine-bearing rock units, high porosity and permeability, and three faults cross cutting the flow of brine from north to south.

The company also highlights that the Green River Project area is surrounded by key existing infrastructure including the national rail network, interstate road system, gas and power, and access to the Green River.

Management commentary

The ASX lithium stock's executive chairman and CEO, Bruce Richardson, sounds excited about the potential of the project. He said:

Anson is excited about the prospects for the Green River Lithium Project. Apart from the world class infrastructure that surrounds the private property that the Company recently purchased and the simplified approval process that goes with that, the geology studies and modelling that has been done indicate similar characteristics to the Paradox Lithium Project, including high pressure, porosity, and permeability.

Anson has extended the flow model from the Paradox to the Green River area and has identified three faults that may act as traps for the concentration of lithium, acting in a similar way to Robert's Rupture at the Paradox. The Company is preparing an exploration program to test this theory by obtaining brine samples from the Green River Lithium Project area for assay and JORC resource calculation as the next step in developing this opportunity further creating shareholder value.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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