Bradda Head Lithium Limited (AIM:BHL, OTCQB:BHLIF) reported positive results from the second stage of its preliminary metallurgical test work programme on samples from its Basin East lithium deposit in the US.

“These results demonstrate the potential to commercially concentrate our Li [lithium] clay grade by 26% to 1,900ppm [parts per million] Li and then, using a simple sulphuric acid leach approach at atmospheric pressure, use standard extraction equipment to extract more than 98% of the Li within an hour,” said chief executive Charles FitzRoy.

The 26% upgrade from the previous estimate of 1,500ppm lithium was achieved by rejecting 32% of the unmineralised waste material, helping to reduce acid consumption and therefore processing costs.

This should positively impact on the economics in the planned preliminary economic assessment at the Basin project by reducing potential acid consumption by about 25%, said the AIM-traded company.

The lithium development group said it is also working to recover co-products which will enhance the cash-flow and feasibility of the project.

The company already has a 305,000-tonne lithium carbonate equivalent compliant JORC resource at its Basin project, and has plans this year to grow this resource with follow-up drilling at Basin North and Basin East Extension.

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