REG - Bradda Head Lithium - Acquisition of Inlier Claims at San Domingo

Bradda Head LithiumAnnouncement

13/04/2023 07:00

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RNS Number : 0363W  Bradda Head Lithium Ltd  13 April 2023

 

13 April 2023

 

Bradda Head Lithium Ltd.

 

Acquisition of Inlier Claims at San Domingo Pegmatite District

 

Bradda Head Lithium Ltd. (AIM:BHL, TSXV:BHLI, OTCQB:BHLIF) ("Bradda Head",
"Bradda", "BHL" or the "Company"), the North America-focused lithium
development company, is pleased to announce that the Company has acquired 100%
of three (3) inlier lode claims (see map below) in the middle of its Central
San Domingo claim block, in Arizona.

 

Summary:

·    Following the promising results released so far from its first drill
programme, which finished in March, (see PR dated 27 March 2023), BHL has
acquired the three inlier claims (c.60 acres) in the middle of its San Domingo
pegmatite district.

·    No royalties are associated with the lode claims.

·    The lode claims owners granted written permission for BHL to drill on
their claims prior to acquisition upon which the final hole, SD-DH23-046, was
drilled into a pegmatite (Lower Jumbo Target) and encountered abundant visible
spodumene, assays pending.

·    The Lower Jumbo mine (which is located on the border of one of the
inlier lode claims, see Figure 2) has a 1.5m long spodumene cast in outcrop
and historic mining that reportedly produced c.155 tonnes at a grade of 5.3%
Li(2)O in the 1950's 1  (#_ftn1) .

·    The acquisition of these claims ensures BHL can fully explore all the
surrounding area at its Central claim block, where five historic lithium mines
are located.

·    The work done to date by Bradda geologists has given the Company
confidence in acquiring these claims, and will form a key part of the Phase 3
drill programme due to start later this year.

·    Recently published results from the Central claim blocks, where BHL
has had very promising results. Large spodumene crystals with scattered
lepidolite are observed in all 6 holes drilled on the Jumbo target, with
assays pending for the last hole (SD-DH23-038a). Results from the adjacent
Jumbo Target include 9.54m @ 1.85% Li(2)O in SD-DH23-037 and 4.02m @ 1.27%
Li(2)O in SD-DH23-035, both at shallow depths.

·    The assays received so far not only demonstrate that we have
significant intersections of pegmatites with visible lithium minerals
(spodumene and some lepidolite) in the Northern Claim blocks, but also that
BHL has identified intersections of up to 20.0m (Lower Jumbo and Jumbo see
figures 3, 4 and 5) of potential lithium bearing intersections at the Central
Claim blocks, indicating the presence of a potential 9km mineralised trend.

·    The acquisition of the inlier claims allows Bradda to fully explore
the whole 9km trend without encumbrance. Work is ongoing to maximise the
potential of the inlier claims in Phase 3 of drilling at San Domingo.

 

Charles FitzRoy, CEO of Bradda Head Lithium, commented:

"We are delighted to have acquired these three claims. They are located right
at the heart of our San Domingo district, a district where our recent assay
results have already proved to have district scale potential with multiple
areas showing promising results and high-grade lithium intersections with
visible spodumene. We are looking forward to testing further in H2 of this
year and look forward to further proving up the potential of this district.

 

"Bradda is in the process of designing a follow-up drilling programme in H2 of
this year aimed at testing additional ground within the much wider 23km(2) of
lithium pegmatite claims and leases held in Arizona. The acquisition of the
inlier claims strengthens Bradda's position and funds are already in place for
this planned work, and ongoing exploration work by our geologists suggests
that we have only just scratched the surface of what we have at San Domingo
with just over 1% of the area tested from this first programme. We look
forward to sharing further developments of this exciting project.

 

"As well as progressing its pegmatite projects, Bradda Head recently announced
commencement of drilling at its Basin Project and a 2(nd) resource update in
less than 12 months at its lithium in clay Basin project in Arizona. With
almost 0.4Mt of LCE already in compliant resources Bradda Head now has the
largest publicly announced lithium resource in Arizona and 2023 is expected to
be yet another resource growth year for the Company."

 

 

Figure 1: San Domingo Overview map.

 

Figure 2: Phase 2 - Central Claim Block.

 

Figure 3: Central Claim Block - Jumbo and Lower Jumbo Overview

 

Figure 4: Jumbo cross-section

 

Figure 5: Lower Jumbo cross-section

 

 

Background

The first programme (Phases 1 and 2) completed in March 2023, was focussed on
shallow drilling to help understand the structural controls at San Domingo.
These shallow intersections help us interpret what may be present at greater
depth similar to what is seen in comparable LCT (Lithium-Caesium-Tantalum)
systems in Australia.

 

High-grade intersections of lithium mineralisation have been detected at
shallow depths (from surface in some holes) in multiple locations across an
area in the Northern Claim block and Central Claim block at San Domingo (see
figures 2 and 3).

 

Indications so far, demonstrate the potential for deeper feeder systems as
seen in other LCT systems.

Bradda completed a soil sampling programme covering its entire 23km(2)
pegmatite district in late February (assays pending) and along with an ongoing
structural mapping programme, will be used to more accurately and efficiently
define Phase 3 drill programme targets (due to start no later than Q3 2023).
This will build on the  Phase 1 and 2 results and interpretation, and will
explore the potential at the c.99% of our claims at San Domingo that remain
untested.

 

Assay results for the final c.20% of our 47 completed holes are pending and
will be reported when received.

 

In 2022 Bradda completed a soil sampling survey covering c.11% or just under
3km(2) of its 23km(2) of pegmatite ground in Arizona, yielding highly
prospective follow-up drill targets and a 3km trend on the area covered by the
soil sampling (see PR dated 21 November2022) with the same elemental
signatures that have been seen at known lithium mineralisation locations
globally. The programme is now being expanded to cover the remaining 20km(2)
not extensively soil sampled, with contractors from Rangefront Geological
Services.

 

The soil geochemistry suggests that the pegmatite swarm is largely of the LCT
(lithium-caesium-tantalum) mineralisation type, the most significant for
lithium deposits and what is commonly associated with economic occurrences of
lithium and tantalum. LCT-type pegmatites are generally found in the Western
Australian pegmatite district, like Tianqi and Albemarle's joint-venture
Greenbushes lithium mine.

Initial results from the programme were announced on 6 February 2023
demonstrating the presence of multiple lithium bearing pegmatites. With the
best result showing that BHL has intersected 31.85 meters at 1.60% Li(2)O in
drill hole SD22-024 which includes 3.21 meters at 3.74% Li(2)O.

 

Bradda is proactively doing everything commercially possible to sample our
entire pegmatite district to ensure follow-up drill programmes hit more
high-priority targets and to continue to keep intersecting further lithium
bearing pegmatites. Bradda has a 10,000m drill programme planned to start in
the second half of 2023, using data from the wider soil sampling, current
drilling, SRK pegmatite mapping and the upcoming structural mapping programme.

 

Previous surface sampling at named outcropping pegmatites in the San Domingo
claim blocks returned individual sample grade highlights of:

 

·      Midnight Owl: 1.44% Li(2)O

·      Joker: 0.35% Li(2)O

·      White Ridge: 2.49% Li(2)O

·      Lower Jumbo: 1.62% Li(2)O

·      Sunrise: 0.67% Li(2)O

·      North Morning Star: 0.92% Li(2)O

 

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

 

Qualified Person (BHL)

Joey Wilkins, B.Sc., P.Geo., is Head of North America 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 37 years of experience in mineral exploration and is
a Qualified Person under the AIM Rules and a Qualified Person as defined under
Canadian National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"). Core samples were split on site and bagged with sample
tracking tags. Samples were shipped by the company directly to SGS
Laboratories in Burnaby, B.C., Canada where SGS prepped then analysed all
samples using sodium peroxide fusion combined ICP-AES and ICP-MS, method
GE_ICM90A50. Certified standards were inserted into the sample stream and
reviewed by the QP. 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.

 

 

ENDS

 

 

For further information, please contact:

 

 Bradda Head Lithium Limited        +44 (0) 1624 639 396
 Charlie FitzRoy, CEO

 Denham Eke, Finance Director

 Beaumont Cornish (Nomad)           +44 20 7628 3396

 James Biddle/Roland Cornish

 Peterhouse (Joint Broker)          +44 207 469 0930
 Charles Goodfellow

 Duncan Vasey

 Lucy Williams

 Shard Capital (Joint Broker)       +44 207 186 9927
 Damon Heath

 Isabella Pierre

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

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

 Adam Baynes

 

 

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.

 

As previously announced in a press release on 16 January 2022, the Basin East
Project has an Indicated Mineral Resource of 21.2 Mt at an average grade of
891 ppm Li and 3.5% K for a total of 100 kt LCE and an Inferred Mineral
Resource of 73.3 Mt at an average grade of 694 ppm Li and 3.2% K for a total
of 271 kt LCE. In the rest of the Basin Project SRK has estimated an
Exploration Target of between 300 to 1,300 Mt of material grading between 600
to 850 ppm Li which is equivalent to a range of between 1 to 6 Mt 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, on the TSX Ventures exchange with a ticker of BHLI, and on the US
OTCQB market with a ticker of BHLIF.

 

 

Competent Person SRK

The Mineral Resource statement for the Basin Project was authored by Martin
Pittuck, CEng, MIMMM, FGS who works for SRK Consulting (UK) Ltd, an
independent mining consultancy. Mr. Pittuck has over 25 years' experience
undertaking and reviewing Mineral Resource estimates and has worked on lithium
clay estimates for over 5 years. Mr. Pittuck consents to the inclusion of the
resources information in this press release and context in which they appear.
Martin Pittuck is a Qualified Person as defined under NI 43-101.

Reference is made to the report entitled "Independent technical report on the
Basin and Wikieup Lithium clay projects, Arizona, USA" dated October 18, 2022
with an effective date of June 10, 2022  was prepared by Martin Pittuck,
CEng, MIMMM, FGS, and Kirsty Reynolds MSci, PhD, FGS and reviewed by Nick Fox
MSc, ACA, MIMMM. The Report is available for review on SEDAR (www.sedar.com)
and the Company's website www.braddaheadltd.com.

 

 

Technical Glossary

 Li(2)O      Lithium Oxide
 pegmatite   A pegmatite is an igneous rock showing a very coarse texture, with large
             interlocking crystals usually greater in size than 1 cm (0.4 in) and sometimes
             greater than 1 meter (3 ft). Most pegmatites are composed of quartz, feldspar,
             and mica, having a similar silicic composition to granite. However, rarer
             intermediate composition and mafic pegmatites are known.
 Spodumene   Spodumene is a pyroxene mineral consisting of lithium aluminium inosilicate,

           LiAl(SiO3)2, and is a source of lithium. Spodumene contains 3.73% lithium.

 Lepidolite  Lepidolite is a lilac-gray or rose-colored member of the mica group of

           minerals with chemical formula K(Li,Al)3(Al,Si,Rb)4O10(F,OH)2. 2  3  It is the
             most abundant lithium-bearing mineral 4  and is a secondary source of this
             metal. It is the major source of the alkali metal rubidium. Lepidolite
             contains 3.58% lithium.

The formula to convert lithium in parts per million (PPM) to lithium oxide is
to multiply Li ppm times 2.1527, then is reported in percent.

 

 

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", "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 SEDAR. 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.

 1  (#_ftnref1) Bradda Head is not relying on these historic numbers and are
not considered NI43-101 compliant

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