Bradda Head Lithium Ltd said drilling started at its Eureka project in Nevada, US following the recent receipt of drilling permits.
Drilling on a 23-hole programme, designed to test the shallow clay potential at Eureka, began yesterday.
Previous surface sampling identified lithium grades of up to 550 parts per million (ppm) at the project.
"We are delighted to start drilling at Eureka, our third drill programme since IPO [initial public offering], where we have some promising geophysical data, and surface sampling results indicating potential for a clay deposit as well as potentially a brine deposit,” said chief executive Charles FitzRoy.
The Eureka project is not far from Tesla Inc (NASDAQ:TSLA)'s Gigafactory and Albemarle Corp's existing Silver Peak lithium mine, the only US lithium mine currently in operation.
AIM-listed Bradda Head also announced it issued 9.2mln options to certain directors and management, at an exercise price of 18 pence per share, as a reward for their recent performance. FitzRoy was awarded 4.0mln new options, while chairman Ian Stalker was awarded 3.0mln.