Bradda Head Lithium Limited (AIM:BHL, OTCQB:BHLIF, TSX-V:BHLI) has said internal analysis of sonic drilling at the Basin East Extension project in Arizona confirms that lithium-bearing clay continues and thickens to the northwest and north into its BEE lease.

Assay results need to confirm this, the company said, but it believes that the indications so far should lead to a resource expansion in the third quarter of this year.

In a statement, Charles FitzRoy, Bradda Head chief executive, explained: "The initial visual analysis of these first five holes is better than expected and is very encouraging.

"The analysis of hole 5 which is the first hole Bradda has ever drilled to the north of the creek, is particularly exciting as it indicates the presence of a completely intact clay sequence which has been persevered by a basalt layer.”

“That means the lithium-bearing clays at Basin East extend across the creek and open up resource expansion potential,” he added.

Basin Head is one of Bradda Head’s most advanced lithium exploration projects alongside Wikieup, also in Arizona.