REG - Bradda Head Lithium - Additional High Grade Discoveries at San Domingo

Bradda Head LithiumAnnouncement

24/01/2024 07:15

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RNS Number : 7454A  Bradda Head Lithium Ltd  24 January 2024

 

 

 

24 January 2024

 

Bradda Head Lithium Ltd

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

 

Additional Near Surface, High Grade, Lithium Discoveries made at Morning Star
Pegmatites in the San Domingo District Play

 

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI,), the North America-focused
lithium development group, announces further results from the Phase 2 core
drilling at San Domingo ("SD"), Arizona. This is the third and final set of
assays released from the Company's 18,950 feet (5,776m) programme, completed
December 2, 2023 and focuses on the Morning Star and Morning Star South
targets, located southwest of the Central Targets. The programme has delivered
an abundance of encouraging results over the December holiday break.

 

Ian Stalker, Executive Chair, commented:

"As we reach the end of this current San Domingo drilling exploration program,
our objectives have been met and indeed surpassed and, as a result our
expectations heightened.  It is worth reflecting that total drilled metres at
SD, from both programmes is only 13,076 meters, covering less than 1% of the
total property. These were the first two drilling programmes of any note
undertaken at this historic and road accessible lithium mining camp in the
USA. In today's world the return on investment in these two campaigns has been
substantial and we will build on this as we move forward. In other words, when
the Lithium market bounces back, as we believe it will, we will be ready to
maximise value from our total Lithium Portfolio including of course San
Domingo. The strategic location in the USA of our 'ready to move forward
projects' should not be discounted. America remains hungry for its own 'home
produced lithium!!'

 

"Our portfolio of pegmatites are emerging as viable and potentially
extractable near surface resources. The shallow and high-grade intercepts seen
at Morning Star are very exciting and we look forward to building 3-D models
that may lead to follow-up drilling later this year. The abundance of
tantalum, tin, and beryllium are a bonus, potentially adding value to this
maiden drill programme at Morning Star. The obvious LCT
(lithium-caesium-tantalum geochemical signature, e.g., Kathleen Valley
signature) style of mineralisation confirms our belief that we have a
formidable district with massive upside potential."

 

"The fact that Morning Star contains high grade lithium as well as being rich
in tantalum, beryllium, tin with massive zones of potassium feldspar means
that we could have an exciting, diverse and economic deposit. We have more 3D
modeling to explore and, given what we have discovered to date, this could
significantly change the way we examine not only Morning Star, but the rest of
the San Domingo pegmatite trend within our 33km(2) property."

 

 

 

"Parallel to our field work, and complements to our team that delivered these
results, we have streamlined our corporate overhead. The net effect of this
combined effort - business management and technical know how - means that
despite a very poor Lithium market back drop we are now well placed
financially and geologically to be able to move with speed and with our
in-house skills to grow this investment opportunity. In the meantime, we
continue with our 'steady as she goes' approach with no superfluous costs and
intend to move back on the resource growth plan at Basin, Arizona."

 

Summary:

·    High grade lithium mineralisation found at intervals such as 4.14m at
2.07% Li(2)O at a depth of 54.56m in drill hole SD-DH23-104 and 5.40m of 1.70%
Li(2)O at a depth of 31.39m in 093, both at the Morning Star pegmatites (all
holes are abbreviated from SD-DH23-)

 

·    Again, favoured coarse-grained spodumene crystals are observed as the
dominant lithium mineral with minor amounts of lepidolite and montebrasite

 

·    Large, cohesive, and mostly vertical pegmatite bodies were verified
at Morning Star, which were strongly zoned with massive quartz,  fine-grained
albite, and minor schorl as well as massive zones of potassium feldspar

 

·    Pathfinder elements of tin, tantalum ("Ta(2)O(5)"), and beryllium
("BeO") are found to be highly anomalous in the drilling, such as 6.76m at
145ppm Sn in hole 100, 872ppm Ta(2)O(5) with 0.23% BeO in drill hole
SD-DH23-088 over 2.90m

 

·    Morning Star drill hole 088 contains high-grade Ta(2)O(5) with an
interval of 872ppm Ta(2)O(5) ppm and anomalous tin over 2.90m at a depth of
39.26m and 477 Ta(2)O(5) ppm over 5.34m at 75.74m depth

 

·    Lithium, plus the bonus of ore grade Ta(2)O(5)with discrete anomalous
tin and BeO in the Morning Star drill holes in a shallow environment, bodes
well for the potential of open cut mining.

 

Results from the Morning Star and South Morning Star targets are highlighted
by the following intervals:

·    4.14m at 2.07% Li(2)O in drill hole 104 at Morning Star

·    5.40m of 1.70% Li(2)O followed by 4.18m of 1.63% Li(2)O (within
14.63m at 0.54% Li(2)O) plus 0.67m of 1.21% BeO, all above 55.93m depth in
drill hole 093 at Morning Star

·    5.55m of 1.03% Li(2)O in hole 099 at South Morning Star

·    6.67m at 0.82% Li(2)O in drill hole 100 at South Morning Star

·    2.01m at 1.84% Li(2)O in drill hole 091 at Morning Star

·    2.80m at 0.65% Li(2)O in drill hole 090 at Morning Star

·    Morning Star surface samples of 4.35% and 3.67% Li(2)O above holes
093 and 104 highlight open pit potential

·    Wide-open potential >100m depth, virtually unexplored by this
second program and presents impressive opportunities district wide

 

 

Figure 1: Cross section through Morning Star, drill hole SD-DH23-093 and
SD-DH23-104 high grade intercepts, surface samples up to 0.92% Li(2)O

 

Drilling at Morning Star, located 1.0km southwest of the Central Targets,
commenced in late October with holes 088 through 098 and 104 for a total of 12
holes totalling 2,159m. Most holes were drilled perpendicular to the main
northeast trending and steeply dipping pegmatite bodies, all of which
encountered variable amounts of pegmatite with visible spodumene and minor
segments of lepidolite and montebrasite. Holes 093 and 104 contain the
highest-grade intercepts with 5.40m at 1.70% starting at 31.39m followed by
4.18m at 1.63% Li(2)O at 51.66m in hole 093, and 4.14m at 2.07% Li(2)O at
54.56m followed by 4.57m at 1.12% Li(2)O  at 66.75m in hole 104. Theses
intercepts are compelling and justification to follow-up on the high-grade
intercepts discovered in holes 093 and 104 with future exploration drilling.
Notably, two surface samples near the collars of 093 and 104 returned 4.35%
and 3.67% Li(2)O, highlighting the potential connectivity with the subsurface
drill hole samples and open cut potential.

 

Ta(2)O(5) is highly anomalous at Morning Star, occurring with or without
lithium mineralisation such as in hole 088 where there is 2.90m of 872
Ta(2)O(5) ppm with 0.46% Li(2)O and 0.23% BeO including 1.13m of 2,220
Ta(2)O(5) represented as fine grained tantalite in drill core.

 

High potassium values are found as massive potassium feldspar with samples up
to 12.00% K and an interval of 22.52m at 10.72% K identified drill hole 104,
isolated above the lithium rich intervals at Morning Star. Further
investigations into the potassium distribution are planned as this could be a
viable source of potassium feldspar.

 

Immediately to the south is South Morning Star where a mine exposes coarse
grained spodumene crystals and was the target of holes 099 through 103,
cutting multiple zones of lithium mineralization, see Figure 3 below for
target location. Drill hole 099 intersected shallow mineralization with 6.69m
of 0.58% Li(2)O at 8.53m depth followed by 5.55m of 1.03% Li(2)O at 31.03m.
Hole 100 was drilled from the same site at a steeper angle (-75 degrees) and
cut multiple intervals of lithium mineralization, again quite shallow
highlighted by 3.04m at 0.68% Li(2)O and 123ppm Sn at 16.50m depth, followed
by 6.75m at 0.82% Li(2)O and 145ppm Sn at 32.92m depth, both within 28.77m of
0.36% Li(2)O and 91ppm Sn. New surface work will focus on collecting channel
samples across the prospect that will contribute to expansion of this very
shallow and potential open cut resource.

 

 

Table 1: San Domingo, Morning Star and South Morning Star Drill Hole
Highlights

 

 Hole number  From (m)  To      Int (m)  Li(2)O (%)  Sn (ppm)  Ta(2)O(5) (ppm)     BeO   Target

                        (m)                                                        (%)
 SD-DH23-088  28.80     31.09   2.28     0.41                  620                 0.06  Morning Star

              28.80     45.63   16.82    0.19                  164
              39.26     42.15   2.90     0.46                  872                 0.23
              46.51     49.62   3.11                           223
              48.77     49.62   0.85     0.49                  259
              75.74     102.02  21.45    0.03
              75.74     81.08   5.34                           477

 SD-DH23-089  21.95     39.78   17.82    0.04
              29.32     32.31   2.98                 80
              44.96     51.21   6.23                 76        147
              48.01     50.9    2.89                           298

 SD-DH23-090  6.10      22.52   17.43    0.17        75        42
              6.10      10.82   4.73                 116
              16.25     19.05   2.80     0.65        109       48

 SD-DH23-091  43.28     55.17   7.45     0.06                  91
              61.57     63.58   2.01     1.84                  404

 SD-DH23-093  5.64      11.67   6.04                           151
              16.76     17.83   1.07     0.31
              31.39     40.39   8.99     1.20
 with         31.39     36.79   5.40     1.70
              44.20     58.83   14.63    0.54        71
 with         51.66     55.93   4.18     1.63        100       52                        Morning Star

              78.64     83.39   4.75     0.04                  82

 SD-DH23-094  17.22     23.16   5.93     0.07
              52.12     53.80   1.68     0.89        80        80
              66.75     72.09   5.33     0.05

 SD-DH23-095  68.64     72.24   3.6      0.04                  62

 SD-DH23-096  48.37     56.39   7.05     0.03

 SD-DH23-097  75.29     76.23   0.94     0.12
              97.99     101.59  3.60     0.04

 SD-DH23-098  78.46     90.22   11.75    0.05

 SD-DH23-099  8.53      15.24   6.69     0.58        89        23                        South Morning Star

              26.27     27.37   1.10     0.10        160       266
              31.03     36.58   5.55     1.03        99

 SD-DH23-100  7.10      9.36    2.26                           367
              10.91     39.68   28.77    0.36        91
  with        10.91     13.11   2.20     0.64        81
  plus        16.15     19.20   3.05     0.68        123
  and         32.92     39.68   6.76     0.82        145

 SD-DH23-100  5.03      6.71    1.68     0.49        55        48

 SD-DH23-101  13.56     15.85   2.29     0.30        80        58
              18.80     20.85   1.37     0.12        58

 SD-DH23-102  39.08     42.37   3.29     0.04

 SD-DH23-103  7.32      14.02   6.70     0.07        77        41

 SD-DH23-104  8.84      10.52   1.68     0.65                                            Morning Star

              54.56     58.70   4.14     2.07                  67
              66.75     71.32   4.57     1.12        76        32
              71.32     77.69   6.36     0.10                  149
              90.83     91.78   1.23     0.14

*All drill depths are from surface

 

 

Figure 2: San Domingo Project, Target Locations

Figure 3: Morning Star and South Morning Star drill holes, pegmatites, targets
and land

 

To close out the programme, the Company drill-tested two distinct and
unusually strong, soil geochemical anomalies (Li-Cs-Rb) with holes collaring
in greenstone, but the source of the anomalies was not determined as no
pegmatites were encountered. One hole was located to the northeast of Morning
Star (see Figures 3) and the other on the Monster target (Figure 2), northwest
of Jumbo.

 

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

 

QAQC

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 Qualified Person. 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.

 

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 / Adam Baynes           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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