Bradda Head Lithium Limited (AIM:BHL, OTCQB:BHLIF) has received conditional permission to begin drilling at its Eureka project in Nevada.
The permission is for a 23-hole programme, pending a 30-day bond payment adjudication with the money already posted by Bradda Head, the company said in a statement.
Permits should be granted 30 days after receipt of the bond money.
The drilling will test for a potential shallow clay project similar to the junior’s other clay assets in Arizona (Wikieup and Basin) and follows surface sampling carried out by Bradda Head identified grades of up to 550ppm Li (lithium) at Eureka.
Geophysics surveys have both indicated brine and clay deposits at Eureka, which is close both to Tesla's Gigafactory and Silver Peal, the only US lithium mine in operation currently.
Geothermal power is also a possibility for any project at Eureka.
Charles FitzRoy, chief executive, added: "Having contracted widely respected Zonge Engineering and Terravision Exploration to carry out geophysics surveys, we are now moving to the next phase of exploration at Eureka, to test the potential for a clay project as well as brine.
"Eureka has additional benefits in that it has demonstrated considerable geothermal potential. This is a key point as it could enable us to lower our carbon footprint and running costs for lithium extraction from Eureka - mirroring Bradda's vision and strategy."