Bradda Head Lithium Limited (AIM:BHL, OTCQB:BHLIF, TSX-V:BHLI) said a new mineral resource estimate for its Basin project in Arizona has triggered a US$2.5 million payment from Lithium Royalty Company (LRC).

The new resource estimate is 17 million tonnes in the indicated category at 940 parts per million (ppm) carrying 85,000t LCE (lithium carbonate) and 210 million tonnes in the inferred category at 900 ppm, carrying 1 million tonnes of LCE.

Drilling in the Basin during 2023 had added 729,000t to the LCE resource in the Inferred category, Bradda Head added.

Ian Stalker, chairman, said: "The increase in LCE at Basin East Extension and into Basin North highlights the impressive potential that we have always believed is inherent at the Basin Project.

“The total drilled area at Basin East/Basin East Extension/Basin North still only covers 2.5km2 of our 41km2 license area at Basin and Wikieup.

"We believe that 2024 is going to be another exciting year of resource growth for Bradda Head, hopefully in both project areas - San Domingo Pegmatites and the Basin Clays.

“More drilling is already planned at Basin North and Basin West upon receipt of the Environmental Assessment (EA) from the BLM in the second half of 2024.”