REG - Bradda Head Lithium - Drilling Completed at Basin and San Domingo Update

Bradda Head LithiumAnnouncement

22/05/2024 07:00

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RNS Number : 3516P  Bradda Head Lithium Ltd  22 May 2024

 

 

22 May 2024

 

Bradda Head Lithium Ltd

("Bradda Head", "BHL" or the "Company")

 

Drilling Completed at Basin Lithium-in-Clay Project & San Domingo
Pegmatite Project Update

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused
lithium development group, is pleased to provide an update on work at its
Basin Project in Arizona. The lithium-in-clay, resource-expansion drilling
programme has concluded with the completion of eight drill holes on the Basin
North target portion of the Basin project. A resource expansion from 1.08
million tons (MT) to a minimum of 2.5 MT of lithium carbonate equivalent (LCE)
would generate a US$3 million royalty payment to Bradda Head from Lithium
Royalty Company (LRC).

 

To date, partial results have been received, with the remainder still pending
and the Company will make further announcements as these are received in full.

 

The Company has also been working on the next phase of exploration at San
Domingo hard rock Pegmatite Project and is excited to present a brief
description of the next work program where several high-profile pegmatite
targets have received little if any exploration and present excellent
opportunities for growth. In addition, follow-up on last year's drilling and
this year's channel sampling are planned.

 

Highlights:

 

Basin Project

 

·    Average hole depth of 285 meters (934 feet) with a range of 231 to
387 meters (757 to 1,269 feet) in a total of 2,353 meters (7,720 feet) drilled
This was less than the 2,682 meters (8,800 feet) initially envisaged as a
result of finding shallower clay targets than anticipated

·    Further resource increase anticipated following the definition of a
window 900 meters wide (east-west) by 1,780 meters in length (north-south),
consistent continuous lithium-bearing Upper and Lower Clay units, it has the
potential to continue expanding, being wide open in all directions

·    Thickest Upper Clay unit at 103 meters in the center of the drill
pattern discovered at hole BND24-19

·   Two holes were drilled on State Lands and designed to capture lower
clay; substantially increasing the lower clay reach from Basin East to the
northern end of Basin North, a linear distance of 3.3km

·    Program was successfully completed under budget and without any
environmental or safety incidents

·   Completion of this program has produced promising visual results,
Bradda Head's geology team are now able to recognise that the clays contained
strong characteristics of high lithium values, and are greatly encouraged by
the clays seen in the past eight drill holes

·   The Qualified Person (QP) has made a site visit and was provided with
all the geological and technical information, and the geologic block model has
been revised to reflect the new intervals from drill hole lithologies and
peripheral surficial geology

 

 

 

 

Figure 1. Basin drill hole distribution, land, geology, 2023 resource
boundaries (inferred and indicated).

 

Basin Project Permitting Update

 

A Basin West drilling permit kick-off meeting was also held with the BLM in
April and organised to initiate the NEPA (National Environmental Policy Act)
process for development of the EA (Environmental Assessment) Report that, once
approved, will allow the Company to commence drilling. This process follows
the BLM's letter of EPO (Exploration Plan of Operations) completeness which
the Company received earlier this year, and marks an important step on
expanding our ability to extend exploration over the very promising Basin West
target.

 

 

San Domingo Pegmatite Project

 

·    A well thought out, and detailed exploration programme is planned for
the second half of this year on the Company's San Domingo Project, building on
the success of the two previous drilling campaigns. At this moment the plans
include a design to offset 2023 drill hole high-grade intercepts at Morning
Star, White Ridge, and Midnight Owl, surface sampling (channel, rock, soil) on
new targets accompanied by detailed geologic and structural mapping, then
access review for drill hole permitting

·   A summer program of planned geologic/structural mapping, channel, rock
chip, and soil sampling on unexplored soil anomaly/pegmatite targets

·    Follow-up drilling to strategically offset last year's high grade
drill hole intercepts where feasible

·    Exploration of the following greenfield targets: Yellowstone,
Thunder, Dragon, Lone Giant, Road Runner, in addition to recently staked lands
to the northwest and south where pegmatites and greenstone are present: all
targets have excellent upside potential

·   Yellowstone is a 900x900 meter undrilled target with multiple
lithium-caesium-rubidium anomalies, and where spodumene was identified in the
field during cursory reconnaissance

·   Dragon is an undrilled pegmatite target with surface grab samples up
to 7.99% Li(2)O and 10 out of 48 surface samples >0.50% Li(2)O

 

 

San Domingo Pegmatite Project Update

 

The Company is diligently working on the next phase of exploration at the 100%
owned San Domingo pegmatite project. The team believe that there is excellent
potential to find new lithium bearing pegmatites given the extensive size of
the nearly 33 square kilometer property and limited amount of ground coverage
to date. In addition, to developing new targets, there will be follow-up on
last year's drill hole intercepts, as well as this year's excellent channel
sampling at Morning Star, White Ridge, and Midnight Owl. The future plan will
be to strategically place drill holes to test channel sample mineralization
and offset down-hole mineralization in order to grow resource potential at all
three targets.

 

The summer program is expected to include geologic/structural mapping, channel
and rock chip sampling, and additional soil sampling to refine targets for
potential drilling, specific details of which will follow later. The
Yellowstone target, for example, has multiple lithium-caesium-rubidium
geochemical anomalies across a 900 by 900 meter target area where spodumene
was identified in the field during cursory reconnaissance and this, as well as
other targets, require detailed work to elevate them to drill target status.
The Company remains very encouraged by the strong soil geochemistry and
presence of spodumene. Additionally, the Company has undrilled targets such as
Dragon, where surface rock chip samples detected up to 7.99% Li(2)O from a
mine dump sample with 10 out of 48 rock chip samples containing over 0.50 %
Li(2)O. The Dragon area will be the focus of channel sampling, taking
advantage of excellent road access to several historic and shallow lithium
prospects.

 

 

Ian Stalker, Executive Chair, commented:

 

"Now that drilling has concluded and the visual aspects of the clays appear
promising, we await the geochemical results that we believe will support the
MRE expansion from 1.08 MT to over 2.5 MT of LCE. We are confident that this
is an exciting and promising clay project in west central Arizona and are
proud to be contributing to lithium expansion in the USA.

 

"We look forward to providing further updates for all our stakeholders as the
results come in from Basin, as well as more details on our forthcoming plans
for San Domingo."

 

 

QAQC

Core samples were cut and sampled at the core shed under the supervision of
Joey Wilkins, the Company's COO. The drill core was cut in half and one-half
bagged, labelled, and tied-off. Samples were placed in a secure container
until the hole was complete then shipped direct to SGS Laboratories in
Burnaby, B.C., Canada where they prepped then analysed all samples using
4-acid digest with ICP-AES. Certified standards were inserted into the sample
stream to ensure quality control at the laboratory. Mr. Wilkins consents to
the inclusion of the technical information in this release and context in
which it appears.

 

Qualified Person (BHL)

Joey Wilkins, B.Sc., P.Geo., is Chief Operating Officer at BHL and the
Qualified Person who reviewed and approved the technical disclosures in this
news release. Mr. Wilkins is a graduate of the University of Arizona with
a B.Sc. in Geology with more than 38 years of experience in mineral
exploration and is a qualified person under the AIM Rules and a Qualified
Person as defined under NI-43-101. Mr. Wilkins consents to the inclusion of
the technical information in this release and context in which it appears.

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS
SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.

 

For further information please visit the Company's
website: www.braddaheadltd.com (http://www.braddaheadltd.com/) .

 

 

ENDS

 

 

Contact:

 

 Bradda Head Lithium Limited        +44 (0) 1624 639 396
 Ian Stalker, Executive Chairman

 Denham Eke, Finance Director

 Beaumont Cornish (Nomad)           +44 (0) 2076 283 396
 James Biddle / Roland Cornish

 Panmure Gordon (Joint Broker)      +44 (0) 2078 862 500
 Hugh Rich

 Shard Capital (Joint Broker)       +44 (0) 2071 869 927
 Damon Heath / Isabella Pierre

 Red Cloud (North American Broker)  +1 416 803 3562
 Joe Fars

 Tavistock (Financial PR)           + 44 20 7920 3150
 Nick Elwes / Josephine Clerkin     braddahead@tavistock.co.uk

 

 

About Bradda Head Lithium Ltd.

Bradda Head Lithium Ltd. is a North America-focused lithium development
group. The Company currently has interests in a variety of projects, the most
advanced of which are in Central and Western Arizona: The Basin
Project (Basin East Project, and the Basin West Project) and the Wikieup
Project.

 

The Basin East Project has an Indicated Mineral Resource of 17 Mt at an
average grade of 940 ppm Li and 3.4% K for a total of 85 kt LCE and an
Inferred Mineral Resource of 210 Mt at an average grade of 900 ppm Li and
2.8% K (potassium) for a total of 1.09 Mt LCE. In the rest of the Basin
Project SRK has determined an Exploration Target of 250 to 830 Mt of material
grading between 750 to 900 ppm Li, which is equivalent to a range of between
1 to 4 Mt contained LCE. The Group intends to continue to develop its three
phase one projects in Arizona, whilst endeavouring to unlock value at its
other prospective pegmatite and brine assets in Arizona, Nevada,
and Pennsylvania. All of Bradda Head's licences are held on a 100% equity
basis and are in close proximity to the required infrastructure. Bradda Head
is quoted on the AIM of the London Stock Exchange with the ticker of BHL and
on the TSX Venture Exchange with a ticker of BHLI.

 

 

Technical Glossary

 

 Kt                          Thousand tonnes
 Ppm                         Parts per million
 Exploration Target          An estimate of the exploration potential of a mineral deposit in a defined

                           geological setting where the statement or estimate, quoted as a range of
                             tonnes and a range of grade (or quality), relates to mineralisation for which
                             there has been insufficient exploration to estimate a Mineral Resource.
 Inferred Mineral Resource   That part of a Mineral Resource for which quantity and grade (or quality) are

                           estimated on the basis of limited geological evidence and sampling. Geological
                             evidence is sufficient to imply but not verify geological grade (or quality)
                             continuity. It is based on exploration, sampling and testing information
                             gathered through appropriate techniques from locations such as outcrops,
                             trenches, pits, workings, and drill holes.  An Inferred Mineral Resource has
                             a lower level of confidence than that applying to an Indicated Mineral
                             Resource and must not be converted to an Ore Reserve.  It is reasonably
                             expected that the majority of Inferred Mineral Resources could be upgraded to
                             Indicated Mineral Resources with continued exploration.
 Indicated Mineral Resource  That part of a Mineral Resource for which quantity, grade (or quality),

                           densities, shape and physical characteristics are estimated with sufficient
                             confidence to allow the application of Modifying Factors in sufficient detail
                             to support mine planning and evaluation of the economic viability of the
                             deposit.  Geological evidence is derived from adequately detailed and
                             reliable exploration, sampling and testing gathered through appropriate
                             techniques from locations such as outcrops, trenches, pits, workings, and
                             drill holes, and is sufficient to assume geological and grade (or quality)
                             continuity between points of observation where data and samples are gathered.
 Sn                          Tin
 Ta(2)O(5)                   Tantalum pentoxide

 

 

 

Forward-Looking Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. This News Release
includes certain "forward-looking statements" which are not comprised of
historical facts. Forward-looking statements include estimates and statements
that describe the Company's future plans, objectives or goals, including words
to the effect that the Company or management expects a stated condition or
result to occur. Forward-looking statements may be identified by such terms as
"believes", "anticipates", "intends to", "expects", "estimates", "may",
"could", "would", "will", or "plan". Since forward-looking statements are
based on assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Although these
statements are based on information currently available to the Company, the
Company provides no assurance that actual results will meet management's
expectations. Risks, uncertainties, and other factors involved with
forward-looking information could cause actual events, results, performance,
prospects, and opportunities to differ materially from those expressed or
implied by such forward-looking information. Forward looking information in
this news release includes, but is not limited to, following: The Company's
objectives, goals, or future plans. Factors that could cause actual results to
differ materially from such forward-looking information include, but are not
limited to: failure to identify mineral resources; failure to convert
estimated mineral resources to reserves; delays in obtaining or failures to
obtain required regulatory, governmental, environmental or other project
approvals; political risks; future operating and capital costs, timelines,
permit timelines, the market and future price of and demand for lithium, and
the ongoing ability to work cooperatively with stakeholders, including the
local levels of government; uncertainties relating to the availability and
costs of financing needed in the future; changes in equity markets, inflation,
changes in exchange rates, fluctuations in commodity prices; delays in the
development of projects, capital and operating costs varying significantly
from estimates; an inability to predict and counteract the effects of COVID-19
on the business of the Company, including but not limited to the effects of
COVID-19 on the price of commodities, capital market conditions, restriction
on labour and international travel and supply chains; and the other risks
involved in the mineral exploration and development industry, and those risks
set out in the Company's public documents filed on SEDARplus. Although the
Company believes that the assumptions and factors used in preparing the
forward-looking information in this news release are reasonable, undue
reliance should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that such events
will occur in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, other than
as required by law.

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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