Bradda Head Lithium Ltd (AIM:BHL) said preliminary metallurgical tests on samples from its Burro Creek East lithium project indicated extraction and production costs can be lowered significantly.

A test programme carried out by consultant SGS highlighted it was possible to use just a simple low-temperature sulphuric acid leach approach at atmospheric pressure, utilising standard extraction equipment.

Future work will assess other methods to upgrade the lithium content, produce battery-grade Lithium Carbonate Equivalent (LCE) and recover other metals from the feed material.

Bradda Head is targeting extraction costs of less than US$4,000/t LCE (Lithium Carbonate Equivalent), compared to current spot prices of over US$40,000/t.

Charles FitzRoy, chief executive, said: “Following on from our consistently reported exploration results we are now delighted to highlight encouraging test-work results from our new look metallurgical test work programme with core from our 2021 Burro Creek East drill programme.

"Alongside this timely new test-work initiative on our 'Lithium in Clay' deposits, Bradda Head is pushing ahead to add further tonnes to the existing JORC Resource in Q1 2022, as well as reporting a preliminary resource at our Wikieup site in Q2.”

Shares rose 21% to 11.9p.

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