Bradda Head Lithium Ltd (AIM:BHL, OTC:BHLIF, TSX-V:BHLI) executive chairman Ian Stalker talked with Proactive about the company’s latest progress at its San Domingo pegmatite project in Arizona.
Stalker shared details on plans to define a NI 43-101 compliant resource in 2024, moving toward production by late 2025 or early 2026.
He highlighted new targets within the project area, such as Ruby Soho and Dragon. He emphasised the simplicity and cost-efficiency of the project, leveraging rented equipment and gravity separation processes to produce a quality lithium concentrate.
Stephen Gunnion: Ian, very good to speak with you again. You're out with an update on your San Domingo pegmatite project and really
Ian Stalker: Yes, it's another significant milestone for us. What we've been getting ourselves towards this year is getting to a position where next year we can define a NI 43-101 compliant resource in our San Domingo project. And this latest announcement is just another step towards that. It highlights in many ways what we've been doing over the years. And just to segue into San Domingo itself, Stephen, we've been busy not only getting the permits in place for the drilling but also in defining the opportunity for a much bigger resource than we had first predicted in our own minds.
The truth will be in the drill bit, but, we've not identified extra targets within the San Domingo area, something called Ruby Soho that I actually visited. I'm just back from the site, an actual fact I was there at the beginning of this week, and, Ruby Soho the target looks very good, as does a better and more clear definition of what the Midnight Owl target looks like.
Midnight Owl is where we had the best intersection ever from our perspective way back. So the 18 months ago. So we've been building that momentum within the San Domingo, where we're now feeling pretty hot to trot it in terms of getting that resource out and creating circumstances where we can bring this San Domingo project into production. We hope by the end of 2025, the beginning of 2026, it will be a pegmatite project, which is simpler of all the lithium projects out there in the marketplace today.
A good resource, open-pit-able which we've got, we think we've got at our particular target area. This allows us to look at the gravity separation, which takes place as part of the metallurgical processing. And we've already defined that we can produce a concentrate from our material. Limited sampling though it was, and I must stress it was limited sampling will do a lot more this this next 12 months and move forward.
Still, we've done enough to highlight that we can produce a concentrate of a quality grade that can be sold in the marketplace. Our expectation is we can do that by utilizing, rented equipment, i.e. aggregate plants that exist in great quantity over in that part of the United States, and obviously open pit fleets that are hired from mining contractors. So the capital cost of developing the operation and the operating cost itself are relatively small in real terms. So a little junior like ourselves can move forward positively and aggressively and that so, you know, we're looking forward to 2025 from a San Domingo point of view, as well as the other projects.
Stephen Gunnion: Just just staying with San Domingo, the notice of intent drilling permit that was approved for the the Dragon target. You mentioned, Ruby Soho and Midnight Owl, and then you're also waiting for some results coming from the Jumbo target. You expect those in the first quarter of next year?
Ian Stalker: Yes. we do. And that target, the Dragon target. And thanks for reminding me of it Stephen, is another excellent target that we identified towards the end of this year. And we've been crawling all over it, as you can imagine, as good geologists do. And we're very comfortable that that will be the start of our drilling campaign. And we're optimistic that will be part of the resources that we're building towards
And then, as you mentioned, we have lower Jumbo as well, which looks pretty encouraging. So we're we're feeling confident about our own identity in that environment. And getting close to a position where we as I say, this production scenario is for a junior in the market space where it and I know we're going to come back to this Stephen.
It's tough to raise money. We've been very fortunate. We've not needed to for over two years now, which is a fantastic achievement for little Bradda Head. We're not able to raise a dime in a market that is sad, is the best way to describe it, and probably the Politest as well. But going forward, you know, we are looking at production and that saves us having to raise money in, in the marketplace going forward as well.
Stephen Gunnion: Do you see any improvements in the markets, Ian?
Ian Stalker: Well, look, I think it is time to reflect a little bit Stephen. In the markets, you know, we all want to clutch at straws is the nature of, a business mind when he's in a market that's tough. And it has been tough to make no mistake, the lithium market space has been as rough as you can imagine.
Ian Stalker: Lithium prices are down to all-time lows. You've seen projects being cancelled. You've seen production being taken offline, and you've seen a lot of my peer group actually disappearing. A lot of the junior space has just wrapped up for not only for the summer and all the winter but just going and some of my other peer groups who are in development projects in say, Africa, for example, have had to raise money ridiculously low prices, meaning huge dilution for their shareholders.
And as a consequence, you know, lower NPV by comparison, share price values, we at Bradda have done the opposite. We I think we caught the wave early. We recognized that the the market was going to be tough and we strategically reduced our overhead to a level where we're very comfortable now with what's going forward. We are undertaking next year's drilling program with three people on our team, only in Nevada and in Arizona, read by a guy called Joey Wilkins
And all credit to those three because they've done a job which was previously done by six, seven of them earlier, and they've done a better job more effectively and more efficiently. So we prepared ourselves to get to a stage where that overhead did not incapacitate or cause a major drain in resources, and then allowed us to do that work we've talked about earlier in San Domingo and of course, the work we did earlier this year in the lithium and clays at the basin Project.
So we're now in a position really by comparison to our peer group, not only in the AIM market but also on the TSX and other markets worldwide, where as a little junior lithium company, we are ready to blow. We've got the opportunity coming forward of getting the production, being near term, etc., the opportunity of building up resources into a greater number.
We've got other projects on the sidelines, such as the basin, such as the oil brines and such as the other brine and projects that we've got within Bradda Head. But we're really good to go. And therefore, when I look at it I make the comment to everyone who will be watching your show and the investors who are looking at us, that we are in a good position by comparison.
And, you know, it's it's it's a real good time to be investing in Bradda Head And then going back to the subject of your question, the lithium market itself, you know, there's been many false dawns. But I genuinely believe and I really mean this from my own position, the sort of noise coming out the States won't change. It's just noise.
They have to, come hell or high water encourage electric vehicles in that part of the world. They just have to. There is no alternative. It's the speed at which they do it. And that might be the manner in which electric vehicles in the states move forward. But elsewhere, I mean, it's something like 60% of the vehicles in China are now electric.
That's a heck of a number. And it's growing in every part of the market you can see in Asia, in Europe, you know, in South America. Yeah. I have a place over in Portugal and I see the BYD franchise everywhere I go in Portugal. So I do think that the demand is going to come slowly but surely.
And I think little projects like we've got that are cash-cost-effective can make an impact on the market. And don't forget, we remain an American-based company and someone over in America, just like what Volkswagen (ETR:VOWG_p) has done recently, will be bought into Patriot Minerals or Patriot Battery Minerals somebody will want to see. We've got a chunk of, Bradda Head, and we're making batteries from the USA supply of lithium
So I look I think we're in good shape and the market I think will slowly but surely come around and we'll we're ready to take advantage of that. Stephen.
Stephen Gunnion: Well Ian I hope you'll keep us posted on any progress at San Domingo, I think we're going to be catching up in the new year to discuss your other plans for 2025. Thanks for taking the time today.