Bradda Head Lithium Ltd (AIM:BHL, OTCQB:BHL) released the results of two geophysics surveys carried out at its Eureka asset in Nevada that demonstrate the potential presence of both brine and clay deposits.
Eureka, is located in central Nevada, not far from Tesla's Gigafactory and Albemarle's existing Silver Peak lithium mine, notably the only US lithium mine in operation currently.
One survey showed the presence of a potential brine reservoir at depths varying from 300 metres to 2,000 metres over a 12km strike length.
Two programmes are now planned for H2 2022 - a deeper drilling programme to test the lower basin, and a shallow drilling programme to test the clay potential.
The surveys also showed geothermal potential at Eureka, which could potentially be used to lower the carbon footprint of lithium production at the asset.
Bradda has now staked an additional 16 square kilometres of claims at Eureka.
Separately, the second survey indicated the presence of potential clay material, like that seen at Bradda's other sedimentary assets Basin and Wikieup, down to a depth of around 100 metres.
“These results support the potential of Eureka that our geological team have always believed to be the case,” said Bradda Head’s chief executive Charles FitzRoy.
“This will enable us to go ahead with plans for a drilling programme to test the observed brine reservoir and a shallow drill programme to test the clay to maximise the resource's full potential whilst further exploring Eureka's lower basin."