Bradda Head Lithium (BHL.L, BHLI.V) has reported an updated resource calculation for is Basin lithium project in Arizona. The project now contains 17 million tonnes of rock in the indicated resource category with an average grade of 940 ppm for a total of 85,000 tonnes of LCE while the inferred resource now contains 210 million tonnes at 900 ppm Li for a total content of 1 million tonnes of LCE.
According to the company, the recent drill results and resource increase has now boosted its confidence level in reaching the next milestone of defining a 2.5 million tonne LCE resource (the current resource is based on drilling off just 14% of the total land package). Bradda Head commented on the excellent continuity of the high-grade clay-rich unit over a total area of 2,700 meters by 1,800 meters. And a portion of the exploration activities to get there will be funded by the US$2.5M cash payment from Lithium Royalty Company, an amount that is owed based on the details of the royalty agreement.
The updated resource calculation is based on a cutoff grade of 550 ppm (up from 300 ppm) and this is the reason why the average grade of the resource also increased by about 30%. The current resource also contains a high-grade component with 6 million tonnes at 1,350 ppm in the indicated resource and 48 million tonnes at 1,290 ppm in the inferred resource.
Disclosure: The author has no position in Bradda Head Lithium. Please read the disclaimer.
