Overview

Burro Creek is a lithium clay project located in central western Arizona, USA. The project is located at the Six Mile Crossing, with the nearest main road being Highway 93, seven miles from the project site. Project location is favourable in terms of infrastructure, with power lines and natural gas pipelines within a few miles of the project area, with these servicing the operating Bagdad copper mine located 7 miles away.

The tenements consist of nine Arizona State Leases and four Bureau of Land Management (“BLM”) Placer and Lode Claims.

In October 2016 an exclusive option agreement was signed by Zenolith Minerals (USA) LLC (“Zenolith”), a now 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”).

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
Next Steps

A two phase approach will be followed:

Phase 1

Drilling and trenching permits have been approved by the Arizona State Land Department: Natural Resources Division Minerals Section, allowing for the commencement of a drill programme.

An initial wide spaced drill program of up to 17 reverse circulation drillholes to an average depth of 80 metres vertical (total 2,160 metres) in conjunction with a program of 7 horizontal trenches (total 655 metres) is planned. Existing unimproved roads totalling 8.3 kilometres as well as 3.3 kilometres of new track construction will provide access for the drilling and trenching.

Key criteria to be assessed will include the lithium grade and distribution, the presence or absence and distribution of any deleterious elements or minerals and other characteristics of the host clay bearing sequence including: density, mineralogy, water content that may affect eventual mining and mineral processing.

The initial wide spaced drill and trench program is designed to provide adequate information to allow for the estimation of an Inferred Mineral Resource.

Phase 2

Based on the results of the initial drill program, an infill drilling program to increase drilling density and the confidence levels of the Mineral Resource will be completed. Concurrent detailed metallurgical studies will be conducted on the lithium clays obtained from the trench and drilling programs and will expand on the preliminary metallurgical testwork that has been completed to date on bulk surface samples. The objective would be to produce a scoping study following these steps.