Overview

Burro Creek East (“BCE”) is located in central western Arizona, USA, around 10km from the operating Bagdad copper mine. The project is favourably located in terms of infrastructure, with power lines and natural gas pipelines within a few miles of the project area.

The tenements consist of nine Arizona State Leases covering a total area of 1.46km2.

In October 2016, an exclusive option agreement was signed by Zenolith Minerals (USA) LLC (“Zenolith”), a subsidiary company of Bradda Head Limited. The option agreement allows for Zenolith to acquire 100% title to the tenement leases and claims, upon completion of certain steps, that are held by the partnership of Cheto Partners LLC (“Cheto”) and St Cloud Mining Company (“St Cloud”).

Through Zenolith, Bradda Head currently holds a 55% interest in the project.

Burro
Project Highlights

2016 Project Highlights

  • In conjunction with consultants World Industrial Minerals, Zenith Minerals sampled five historical drill holes which returned results of 465 ppm Li – 3,577 ppm Li
  • The project area was mapped and identified a saponite bearing clay horizon, which suggests potential to find mineralized clay at or near the surface for most of the project area

2017 Project Highlights

  • Surface sampling completed showed results of over 1,500 ppm Li
  • Geophysics was completed in order to determine the thickness of the clay units
  • During August 2017, samples grading up to 1,680 ppm Li were sent for leaching tests, preliminary results showed that extraction of up to 90% is possible

2018 Project Highlights

During April and May 2018, a 14-hole reverse circulation drilling program was completed. The drill program was managed by World Industrial Minerals, with the drilling contractor being Harris Exploration Drilling. Following completion of the drilling program, SRK Consulting (UK) Limited (“SRK”) was engaged to prepare a Maiden Resource Estimate (“MRE”), resulting in an inferred MRE being developed. Lithium grades averaged 818 ppm Li, with 185,000 tonnes LCE contained metal.

Category

Tonnes (Mt)

Mean Grade

Contained metal

Li (ppm)

K (%) Tonnes LCE

Tonnes K

Measured

Indicated

Inferred

42.6

818 3.3 185,000

1,400,000

 

SRK also prepared an estimated for the entire BCE project area, and the Exploration Target was between 20 to 60 Mt of material, having grades between 600 – 1,000 ppm Li. This equates to a contained LCE range of 50,000 – 300,000 tonnes LCE.

The MRE results only cover a portion of the total BCE project area, with the Burro Creek West and Wikieup project areas not being included in the MRE.

Next Steps

A two phase approach will be followed:

Phase 1

An 80-hole drilling program, with the goal being to develop a Measured and Indicated MRE, plus performing more detailed metallurgical testing. An exploration plan for this has already been approved by the State of Arizona.

Phase 2

Additional metallurgical studies will be completed, leading to the development of a Preliminary Feasibility Study (“PFS”). The results from the metallurgical studies would be used to develop a process flowsheet.