REG - Bradda Head Lithium - Drilling Results for Basin Lithium-in-Clay Project

Bradda Head LithiumAnnouncement

14/06/2024 07:00

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RNS Number : 4059S  Bradda Head Lithium Ltd  14 June 2024

 

 

14 June 2024

 

Bradda Head Lithium Ltd

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

 

Drilling Results for Basin Lithium-in-Clay Project, Lithium Discovered in All
Holes

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused
lithium development group, is pleased to provide drill hole geochemical
results for 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 and
all assays have been received. A resource expansion exceeding 2.5 MT of
lithium carbonate equivalent (LCE) would generate a US$3 million royalty
payment to Bradda Head from Lithium Royalty Company (LRC).

 

Basin North Drill Programme  Highlights:

 

·    Upper Clay unit thickness at 103m in the center of the drill pattern
discovered in hole BND24-19, encountering nearly 100m (99.82m) at 839 ppm Li
with a higher-grade interval of 32.52m at 1,030 ppm Li

·    Five out of the eight holes contain abundant lithium in the Lower
Clay, significant as we are now able to connect the Lower Clay in Basin North
with holes drilled at Basin East, 2km to the south

·    Drill hole BND24-22 encountered 24.05m at 845 ppm Li in the lower
clay, ending in 822 ppm Li due to hole collapsing

·    Additional surface geological mapping and surface sampling further
predict the expansion of clays (Upper and Lower) towards the west onto Basin
West, to the East onto a State of Arizona Mineral Exploration Permit (MEP),
and well to the north where clays have been discovered 1.8km north of hole
BND24-20

·    New surface sampling detects up to 1,241 ppm Li in clays 1.8km to the
north of hole BND24-20, interpreted to represent the Upper Clay

·    Program completed without environmental or safety incidents

·    MRE anticipated to be complete within the next few weeks, following
which the resource will be announced

 

Results from all eight drill holes contain excellent lithium mineralization,
with extensive amounts newly discovered in the Lower Clay. The highlight of
this year's drilling is 99.82m containing 841 ppm Li with a higher-grade
interval of 32.52m containing 1,030 ppm Li in drill hole BND24-19. Hole
BND24-19 contains the thickest Upper Clay thickness of 103m. Drill hole
BND24-23 has strong lithium mineralization in both the Upper Clay and Lower
Clay, highlighted by 69.80m of 976 ppm Li in the Upper Clay with 11.74m at
1,583 ppm Li in the High-Grade zone within the Upper Clay and 11.43m of 864
ppm in the Lower Clay. See Table 1 for a full summary of drilling results and
Figure 1 for drill hole locations.

 

All of the geochemical data, including a refined Leapfrog geologic 3-D model,
are presently with the Qualified Person, who is generating the 2024 MRE
(Mineral Resource Estimate). We anticipate the MRE will be completed within
the next few weeks, following which the resource will be announced.

 

Rock chip samples were also collected in Basin North around the north margin
of the sedimentary basin, detecting up to 1,241 ppm Li on the surface, proving
the exceptional expansion opportunities towards the north, along with what the
Company knows about the extensive potential at Basin West (See Figure 1).

 

 

Ian Stalker, Executive Chair, commented:

 

"This is a particularly exciting juncture in the Company's trajectory, as we
await the updated resource which could unlock a significant royalty payment
from the LRC. Now, with all the results received and the notable expansion
into the Lower Clay, we await calculation by our QP on the MRE expansion,
which we anticipate proving significant growth from 1.08 MT of LCE. Since last
year's sonic drilling and expansion from 371KT to 1.08MT of LCE, we have
remained steadfast in our prediction that we will achieve what is an important
increase. We tripled the resource last year and are optimistic we may achieve
something similar with the conclusion of this 2024 program. We look forward to
providing an update on the Basin MRE for all our stakeholders in short order."

 

 

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

 

 

 

 

Table 1 Below, 2024 Drill Hole Intercepts

 Drill Hole  From_m  To_m    Interval_m  Li in ppm  Clay Sequence          Comments
 BND24-15    164.44  254.20  88.44       811        Upper Clay             1.52m of cave material, not included
 Inc.        221.89  234.70  12.81       1,250      Upper Clay_High Grade
             282.82  311.54   *27.75     737        Lower Clay             * 0.97m Interval lost at 307.18 due to re-drill
 Inc.        296.91  311.54  *12.29      1,024      Lower Clay_High Grade  * 0.97m Interval lost at 307.18 due to re-drill

 BND24-16    76.5    156.67  80.17       694        Upper Clay
             120.52  130     9.48        938        Upper Clay
 BND24-17                                                                  *Hole Lost at 76.2m

 BND24-18    153.19  216.10  62.91       711        Upper Clay
             188.61  196.90  8.29        1,024      Upper Clay

 BND24-19    213.21  313.03  99.82       841        Upper Clay
 Inc.        251.46  283.98  32.52       1,030      Upper Clay_High Grade
             347.32  362.41  15.09       635        Lower Clay

 BND24-20    198.39  275.2   76.81       749        Upper Clay
             244.24  257.83  13.59       946        Upper Clay

 BND24-21    80.41   163.98  83.57       871        Upper Clay
 Inc.        107.05  127.19  20.14       1,114      Upper Clay_High Grade
             173.31  213.57  40.26       695        Lower Clay
             206.36  211.53  4.88        1,123      Lower Clay_High Grade

 BND24-22    217.81  241.86  24.05       845        Lower Clay             Upper Clay not analyzed, twin of BES23-11

 BND24-23    98.82   168.25  69.80       976        Upper Clay
  Inc.       136.43  148.07  11.74       1,584      Upper Clay_High Grade
             197.51  208.94  11.43       864        Lower Clay_High Grade

 

*Drill hole BND24-17 was lost at a depth of 76.2 meters. A new site was
permitted 100m to the south as a replacement and drilled hole BND24-20. All
holes were drilled vertical.

 

 

 

 

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. All standards passed QAQC
metrics of less than 2 standard deviations and validate the geochemical data
used in this PR. 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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