We are funded going forward and in good shape
In an exclusive interview with Thomas Warner, Ian Stalker, the executive chairman of Bradda Head Lithium Limted, provides an in-depth look into the company's updated mineral resource estimates and outlines the strategic roadmap for its key projects in Arizona and Nevada.
In the chat, Stalker emphasises the company's strong financial position, bolstered by a recent $2.5 million payment from the Lithium Royalty Company (LRC), and discusses the next steps for the Basin, Wikieup, San Domingo, and Eureka projects.
Thomas Warner (TW): You've got an updated mineral resource estimate out of your Basin Project in Arizona. Tell us a bit about it and what it means for the business.
Ian Stalker (IS): We're very pleased to have reported that we now have over 1 million tonnes of lithium carbonate equivalent in the ground, part of our overall 41 square kilometre package in Arizona.
This achievement allowed us to notify LRC, triggering a payment of $2.5 million. The consultancy engineering group SRK moved the cutoff grade from 350 ppm [parts per million] to 550 ppm, making the numbers more robust. This provides a springboard for the next phase of metallurgical test work and development of the project.
TW: What else can you tell us about the next steps at Basin and how you're going to be triggering the next royalty payment?
IS: With the $2.5 million, we're well secured until well into 2024. The second payment is triggered when we achieve 2.5 million tonnes of lithium carbonate equivalent.
Our programme has moved forward, and with increased knowledge of the Basin, we can step out in fairly large distances between each borehole. I'm confident that by mid-next year, we'll be getting close to the 2.5 million tonnes, triggering another $3 million payment.
TW: What about San Domingo?
IS: San Domingo is a pegmatite deposit, which means it can be brought into operation much quicker than lithium clays.
We've started drilling the second phase, and I'm looking forward to the first results coming out fairly soon. The pegmatites offer a well-known processing route of crushing and milling, followed by Gravity Recovery and flotation recovery.
Test work indicates that these routes are appropriate for us.
TW: What else do you think that investors in Bradda Head can expect to see in the next few months?
IS: We are busy recruiting a new CEO. The work on the ground continues; drilling at San Domingo is moving forward, and metallurgical test work is underway. We've also got a couple of interesting developments in the lithium claims, which I believe will give the market surprisingly good news.