Impact: Positive
Bradda Head provided an updated mineral resource estimate (MRE) for its 100%-owned Basin Li clay project located in Arizona. Total I&I resources have increased from 0.371Mt LCE to ~1.085Mt LCE with just ~2,300m of additional drilling. Cut-off grades used in this MRE were also higher at 550pm Li (from 300ppm Li) bolstering the robustness of the estimate. With this 1Mt LCE MRE Bradda is now eligible to receive US$2.5M from Lithium Royalty Corp. (TSXV:LIRC, Not Rated), strengthening its treasury for ongoing and future exploration programs. We view this update positively as management continues to advance its projects as promised and achieves set milestones. Given the increased geologic understanding of the deposit, with successive drilling Basin could reach the 2.5Mt LCE milestone as early as 2024. We also believe the market remains focused on the pending drill results from its San Domingo pegmatite project, where previous drill results have returned high grades and demonstrated district scale potential (read more).