Bradda Head Lithium reports strong hits at San Domingo

Initial results from Phase 1 drilling at Bradda Head Lithium's (AIM: BHL; TSXV: BHLI; US-OTCQB: BHLO) San Domingo pegmatite project in Arizona returned high-grade intersections, the company said on Monday.

Assays returned the best result so far of 31.85 metres grading 1.6% lithium oxide (Li2O), including 3.21 metres at 3.74% Li2O in hole SD-DH22-024.

The results come from Phase 1 (Northern claim block) diamond drilling at San Domingo, a two-pronged 7,000-metre initial drill program, including the recently started Phase 2 targeting the Central claim block.

Bradda has completed 36 holes for 5,700 metres to date, meaning the program is 81% complete.

The company still awaits assay results for about half of the 36 holes due to laboratory backlogs extending assay turnaround times.

Bradda Head Lithium's San Domingo pegmatite project in Arizona. Credit: Bradda Head Lithium/Twitter

The drilling was designed to test pegmatites at depth, following up on positive results from 3D mapping, geophysics, geochemistry, and identifying lithium-bearing pegmatite outcrops at surface.

Bradda reports that lithium-bearing minerals have been observed in 75% of the holes drilled. Many holes returned high-grade lithium results, notably in the northern claim block.

Shard Capital analyst Phil Swinfen views Bradda's exploration progress positively.

"The shallow occurrence, long intersections and high lithium grades justify a concerted exploration push at this project," the analyst wrote in a marketing handout. "San Domingo is showing early potential to be part of the U.S. domestic lithium supply response, and the rationale for further drilling remains very strong."

In Swinfen'a view, San Domingo is increasingly likely to become a critical project for Bradda, which is starting to show scale potential.

Drilling is ongoing, and many assay results from completed holes remain pending. Phase 2 is underway, and Phase 3 drilling and further geochemical surveys are planned.

Bradda is designing a follow-up drill program in the second half of the year to test additional ground within the much wider 23sq.-km. of lithium pegmatite claims held in Arizona. Funds are already in place for this work.

Unique for a junior, Bradda has amassed pegmatites, brines and sedimentary clay assets comprising all three lithium types in Arizona. The company is positioning to leverage forecasted supply chain investment of more than US$135 billion.

Bradda shares trading in Toronto were down more than 14% at 12 ?, giving it a market cap of $46.9 million.