Bradda Head Lithium Ltd (AIM:BHL, OTC:BHLIF, TSX-V:BHLI) hailed a "remarkable increase" in lithium carbonate equivalent (LCE) shown in the new mineral resource estimate for its 100% owned Basin Project in Arizona.
Following the completion of drilling and geochemical analysis, the new MRE surpasses the 2.5 million tonne threshold stipulated in the royalty agreement with the Lithium Royalty Company (LRC), triggering a US$3 payment.
The company said it "expects to be well funded for the future", including drilling plans at San Domingo, Arizona, the near-surface spodumene-bearing pegmatite opportunity.
The updated MRE for Basin reported a total of 20 million tonnes of resource containing 929 parts per million (ppm) of lithium (Li), equating to 99,000 tonnes of LCE, classified for the first time at Basin as in the Measured resource category, which signifies high confidence in its quantity and quality.
A further 122 million tonnes are in the Indicated category at 860 ppm Li consisting of 560 kilotonnes (kt) LCE and 506 million tonnes in the Inferred category at 808 ppm Li, carrying 2,175 kt LCE.
"This is a remarkable increase in LCE at Basin North and highlights the ever-growing potential that we continue to believe is inherent at the Basin Project," said chair Ian Stalker.
He said Bradda has now formally requested to be paid the royalty payment by LRC, with documentation submitted per verification by ABH Engineering.
"The total drilled area at Basin East/Basin East Extension/Basin North covers only 4.0 sq km of our 20.8 sq km license area at Basin," Stalker added. "The surface geology and geochemistry across the entire property strongly suggest further and extensive opportunities to continue expanding the resource."
The 2024 drilling program revealed extensive lateral continuity from Basin East to Basin North, with a high-grade layer averaging 1,190 ppm lithium over a 3.0 x 2.0 km area.
This high-grade layer, approximately 15 meters thick, crops out in Basin East and could enhance early mining stages and overall project economics.
Five of eight drill holes encountered lithium mineralized 'Lower Clay', significantly contributing to the overall resource, connecting the Lower Clay resource from Basin East to the northern edge of Basin North over a 3.0 km distance.
The complete NI 43-101 technical report will be available on the Company's website and SEDAR by August 12, 2024.