REG - Bradda Head Lithium - Basin East Extension initial assay results

Bradda Head LithiumAnnouncement

23/05/2023 07:00

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RNS Number : 2654A  Bradda Head Lithium Ltd  23 May 2023

 

 

 

 

23 May 2023

 

Bradda Head Lithium Ltd.

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

 

 

Highest Grade Assays so far Confirm Significant Resource Expansion Potential
Likely at Basin Project in Arizona

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI, OTCQB:BHLIF), the North
America-focused lithium development group, is pleased to announce the assay
results from the first five drill holes of the Basin East Extension ("BEE")
2023 drill programme; delivering the highest grade assays in all four drill
programmes to date  and confirming that lithium bearing clay continues and
thickens to the west, northwest and north into its BEE lease. These
significant indicators are expected to lead to significant resource expansion
for the Company in H2 2023.

 

Highlights:

·    The first assays received back from the 2023 drill programme at Basin
are very encouraging, with the highest grade and thickest high-grade upper
clay unit sections seen to date, including 63.12m @ 954ppm Li in BES-23-03,
66.92m @ 1,077ppm Li in BES-23-04, and 63.71m @ 944ppm Li in BES-23-05.

·    Notable high-grade intervals are: 24.32m @ 1,327ppm Li in BES-23-03,
18.30m @ 1,602ppm Li in BES-23-04, and 32.93m @ 1,029ppm Li in BES-23-05. The
highest-grade assay received to date of 2,676ppm Li over 1.8m was recorded in
hole BES-23-05 at a depth of 109.32m.

·    Drilling commenced in March at BEE, and of the 25 holes planned, the
first six drill holes have now been completed (see Figure 1) and hole 7 is
midway through.

·   The first four holes (south of the creek) located in BEE and Basin East
(BE) (see Figure 1) have continued to demonstrate that the upper clay unit, is
significantly higher grade that the lower clay unit, and thickens to the North
and North-west direction into BEE.

·    Holes 05, 06 and 07 (the first on the north side of the Creek)
confirm this, have a similar upper clay thickness to holes 03 and 04, and also
demonstrate the upper clay thickens to the north, northwest, and west as well
towards Basin West.

·    Hole 07, on the western border of BEE and BW confirms the upper clay
unit continues to thicken to the west, which is very positive for resource
expansion potential into BW, see Figure 2. Hole 07 is not complete but so far
has the thickest upper clay unit encountered to date and is still in upper
clay.

·    The total upper clay unit is 78m, 67m, 69m, and 79m, thick for an
average of 73m, in holes 03, 04, 05, and 06 respectively. To put that in
context the average thickness of the upper clay unit is 34m in all the
previous 34 holes that intercepted upper clay in the last 3 drill programmes
(2018, 2021 and 2022). See Figures 3 and 4.

·    BHL expects to drill up to a further 18 holes at BEE, BE and BN - BEE
is adjacent to BE, and BN joins with BEE's northern border (see map in Figure
1). Prior to this programme, c. 1.4km(2) of the area has been drilled, leading
to a Mineral Resource of 371kt of LCE.

·    During this programme the Company will continue to focus on ensuring
work is carried out with as little disturbance as possible.

·    The Company expects to provide the geological results of the
remaining drill holes and assays when received and a revised resource estimate
will follow after all assays are received.

 

Charles FitzRoy, CEO of Bradda Head, commented:

 

"These assay results are very encouraging and are showing higher grade and
greater upper clay zone thickness than previously encountered at Basin; We
expect a significant resource upgrade from this programme in H2 of this year.

 

"The analysis of holes 5, 6 and 7 which are the first holes Bradda has ever
drilled to the north of the creek, is particularly exciting as it indicates
the presence of a completely intact clay sequence which has been preserved by
a basalt layer; meaning that the lithium bearing clays at Basin East extend
across the creek and open up significant resource expansion potential. The
assays for hole 5 support our blue-sky model for what we forecast at BEE and
on to Basin West.

 

"These assays further strengthen our thesis at Basin and we believe our 2023
drill programme will generate material catalysts for the Company which will
lead to a further significant resource upgrade in H2 of this year.  We look
forward to providing further updates as the results from our drilling
programme become available."

 

Figure 1: Map of Basin East Extension, Basin East, southern portion of Basin
North, and eastern portion of Basin West

 

Figure 2: Map of the Basin Project

Figure 3: Cross-section A-B North-West from Basin East to Basin East Extension
through BES-23-03 to BES-23-05 showing clay thickening.

Figure 4: Cross-section C-D North-West from Basin East to Basin East Extension
through BES-23-04 to BES-23-05 showing clay thickening.

 

 

Background

 

Following on from the success of the 2022 drilling at Basin East ("BE"), BHL
mobilised a sonic drill rig, to drill up to 25 holes in the Company's Basin
Project (see press release dated 16 March 2023).

 

Following the 2022 sonic drilling at Basin, we drilled on c.1.4km(2) of our
c.46km(2) of sedimentary lithium claims in Arizona, comprising the Basin and
Wikieup Projects. The 2023 plan at Basin is to increase exploration drilling
coverage over as much of our c.46km(2) of lithium-bearing sediments as
possible and, by completing this, BHL anticipates further resource growth in
2023 across this project.

 

Initial results at Basin demonstrate the presence across the creek of a
 complete clay sequence as seen in BES-23-05, 06, and likely in 07 which has
not been recorded to date at BE due to varying levels of erosion and basin
margin thinning, thus demonstrating the potential for significant resource
expansion within the 2.5km(2) BEE MEP (Mineral Exploration Permit) and
southern portion of the 2.6km(2) BN claim. Bradda's existing compliant
Resource is located primarily in the 1.5km(2) BE state MEP.

 

The Upper Clay sequence, now confirmed to thicken to the west, northwest, and
north extent of the previously drilled area towards and into Bradda's BEE
claim, could potentially form part of a phased mining operation. This could be
mined early in the mine plan as a High-Grade zone sits in the upper part of
the current resource.

 

Hole BES-23-05, 06, and 07 (the first drill holes ever drilled by BHL to the
north of the creek, see figure 1), encountered what the Company has
interpreted as a completely intact upper and lower clay sequence which has
been preserved by a basalt layer, signifying the continuation of lithium
bearing clays across to BEE from BE and potentially into Basin North (BN). See
Figure 3 and 4 for cross-sections.

 

The assays from hole 05 are consistent with previous results, showing the
upper clay unit is higher grade than the lower, and that there is a high-grade
unit within the upper clay, and they also indicate that the grade profile is
increasing across the Creek, enhancing the resource expansion potential
previously mentioned.

 

Hole 7 which is on the western border of BEE and BW confirms that the upper
clay unit continues to thicken to the west, the hole is midway through
drilling but is still in upper clay with a thickness of 87m so far of upper
clay.

 

BHL released an updated Mineral Resource Estimate ("MRE") in January this year
(see PR dated 16 January 2023), which was the 2(nd) MRE that BHL has released
in 18 months since Listing on AIM in July 2021.

 

The Company has obtained MEP drill hole permits for 120 sites at BEE, where
sonic drilling  commenced in March of this year. The Company also has
permission to drill 10 holes on its BN claim. The difference in the scale of
the programmes is that BEE is a state lease, whereas BN is a Bureau of Land
Management ("BLM") series of lode and placer claims (see map for all Basin
Project claims/leases at https://www.braddaheadltd.com/media
(https://www.braddaheadltd.com/media) ). BEE, BE, and BN are contiguous land
positions with BEE's northern border.

 

Bradda Head is in the process of permitting exploratory drilling at its Basin
West (BW) and Basin West Extension (BWE) claims through an Exploration Plan of
Operations, a procedure with the BLM.

 

Bradda is targeting to grow its Resource at its Basin project this year with
the drill programmes at BEE and BN. Bradda has two royalty payments due from
expanding its resources at its clay projects (see PR dated 22 December 2021).
The next payment of US$2.5 million is paid on Bradda expanding its resource
base to 1Mt LCE (Lithium Carbonate Equivalent), and then the third payment of
US$3 million is achieved when Bradda expands its resource base to 2.5Mt LCE.
Bradda is working with its geologists to hit these targets as soon as is
feasible with the programmes mentioned above and the planned programmes in
2024 at Basin West and Basin West Extension.

 

2023 programme, highlights:

 

Table 1. Basin East & East Extension Highlights

  Hole ID   Total         Upper Clay zone mean grade (Li ppm)  Upper Clay zone interval thickness, in meters *  High-grade Interval grade in Upper zone over 1,000 ppm cut-off (ppm)  High-grade Interval Intersection length in meters*  Lower Clay zone interval mean grade (Li ppm)  Lower Clay zone interval thickness, in meters*

            hole depth
 BES-23-01  77.72         N/A                                  N/A                                              N/A                                                                   N/A                                                 484                                           31.97
 BES-23-02  102.87        826                                  46.24                                            1,005                                                                 13.38                                               596                                           17.49
 BES-23-03  137.92        954                                  63.12                                            1,327                                                                 24.32                                               729                                           34.24
 BES-23-04  111.25        1,077                                66.92                                            1,602                                                                 18.30                                               686                                           15.23
 BES-23-05  191.11        944                                  63.71                                            1,029                                                                 32.93                                               701                                           32.92
 BES-23-06  181.97        Not received                         79.20                                            Not received                                                          Not received                                        Not received                                  27.43
 BES-23-07  Not complete  Not received                         87.17m so far                                    Not received                                                          Not received                                        Not received                                  Not complete

Note: * all lengths represent true thickness as sedimentary sequence is
horizontal and holes are vertical (90 degrees to stratigraphy)

 

 

Table 2. Basin East & East Extension Composited Intervals, Assays Received

 Drill Hole #  From    To      Interval_m*  Strat Sequence  Li2O Composite PPM
 BES23-01      4.57    36.58   31.97        Lower Clay      484
 Includes      6.86    17.07   10.21        Lower Clay      692

 BES23-02      4.72    51.05   46.24        Upper Clay      826
 Includes      15.54   28.96   13.38        Upper Clay      1005
 And           60.20   77.72   17.49        Lower Clay      596

 BES23-03      6.86    70.10   63.12        Upper Clay      954
 Includes      40.39   64.77   24.32        Upper Clay      1327
 Also          48.01   64.77   16.27        Upper Clay      1451
 Plus          102.11  136.4   34.24        Lower Clay      729
 Includes      128.54  134.87  5.32         Lower Clay      1215

 BES23-004     5.33    72.24   66.92        Upper Clay      1077
 Includes      29.57   47.85   18.30        Upper Clay      1602
 Plus          84.43   99.67   15.23        Lower Clay      686

 BES23-005     63.09   126.49  63.71        Upper Clay      944
 Includes      85.04   117.96  32.93        Upper Clay      1029
 And           107.59  116.13  7.32         Upper Clay      1438
 Plus          143.46  176.48  32.92        Lower Clay      701

Note: * all lengths represent true thickness as sedimentary sequence is
horizontal and holes are vertical

 

 

Related Tables

The following table is for information and context, comparing Q4 2022, Q1 2022
and 2018 MRE totals in relation to the areas on which work had been conducted
at each time.

 

Table 1: Comparison of updated Q4 2022 MRE to Q1 2022 MRE to 2018 MRE:

              LCE (kt)  Resource area (km(2))  % of resource area over total 41km(2)  Drilled area (km(2))  % of drilled area over total 41km(2)
 2018 MRE     185       0.58                   1.4                                    0.9                   2.2
 Q1 2022 MRE  305(1)    0.94                   2.3                                    1.1                   2.7
 Q4 2022 MRE  371(2)    1.24                   3.0                                    1.4                   3.4

1 National Instrument 43-101 compliant technical report filed for the Basin
Project in November 2022

2 National Instrument 43-101 compliant technical report filed for the Basin
Project in March 2023

 

QAQC, Sample Preparation

All core samples have been split in half, bagged on site, numbered in depth
sequence with certified standards added into the sample stream for quality
control. Bags were kept under lock and key prior to their direct shipment to
ISO-certified laboratory, SGS, in Burnaby, BC, Canada. Samples were weighed,
dried, crushed, then split by rotary convention then placed into 250gram
envelopes. The samples were then pulverized to 85% passing 75 microns, then
analysed by 4-acid digest, ICP-AES / ICP-MS.

 

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. Mr. Wilkins consents to the inclusion
of the technical information in this release and context in which it appears.

 

Reference is made to the report entitled "Independent Technical Report On The
Basin And Wikieup Lithium Clay Projects, Arizona, USA" (the Report) dated
October 18 2022 with an effective date of June 10 2022.The Report was prepared
by Martin Pittuck, CEng, MIMMM, FGS, and Kirsty Reynolds MSci, PhD, FGS and
reviewed by Nick Fox MSc, ACA, MIMMM. Reference is made to the report entitled
"Technical Report On The Mineral Resource And Exploration Target Estimates For
The Basin Lithium Project, USA" dated February 28 2023 with an effective date
of October 13 2022. The Report was prepared by Martin Pittuck, CEng, MIMMM,
FGS, Kirsty Reynolds MSci, PhD, FGS  and Jamie Price MESci, PhD. The Reports
are available for review on SEDAR (www.sedar (http://www.sedar) .com) and the
Company's website.

 

 

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
 Charlie FitzRoy, CEO

 Denham Eke, Finance Director

 Beaumont Cornish (Nomad)           +44 20 7628 3396

 James Biddle/Roland Cornish

 Panmure Gordon (Joint Broker)      +44 20 7886 2500

 John Prior

 Hugh Rich

 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.

 

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.

 

 

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.

 

Technical Glossary

 

 ppm   parts per million
 Li    Lithium
 clay  Lacustrine clay

 

 

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