REG - Bradda Head Lithium - Basin North Drilling Permits Received

Bradda Head LithiumAnnouncement

05/05/2022 07:00

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RNS Number : 3781K  Bradda Head Lithium Ltd  05 May 2022

05 May 2022

Bradda Head Lithium Ltd

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

Basin North Drilling Permits Received

 

Bradda Head Lithium Ltd (AIM:BHL, OTCQB:BHLIF), the North America-focused
lithium development group, announces that it has received conditional
permission to begin a drilling programme (the "Programme") at its Basin North
(BN) sedimentary claims in Arizona.

 

Highlights:

·    Bradda Head has received permission to commence a 10-hole drilling
programme at its BN claim, pending a 30-day bond payment adjudication.

·    Following on from the successful 2021 drill programme at Basin East
(BE), which led to an increase in the contained lithium carbonate equivalent
("LCE") tonnes by 65%, and the identification of an exploration target of up
to 6Mt LCE at its Basin Project, Bradda Head earlier this year applied for and
has now been issued conditional drilling permission at its BN claim.

·    Due to the resource growth potential seen at Bradda's Basin Project,
the Company has planned an extensive 44-hole drilling programme for the
remainder of 2022 covering parts of its BE, Basin East Extension (BEE) and BN
claims which should feed into a revised resource estimate towards the end of
2022.

·    20 holes are planned at BEE and BN with permits in the process of
being obtained at BEE; both programmes should start in Q2. An additional
14-hole sonic drill programme has also been approved at BE.

·    See PR dated 29(th) March 2022 for more information on the updated
Mineral Resource estimate ("MRE") at Basin East, and map at
https://www.braddaheadltd.com/media/image-library/ for more information on the
Basin Project in Arizona.

 

Charles FitzRoy, CEO of Bradda Head Lithium, commented:

"We are delighted to have received conditional drilling permits at Basin North
where evidence from drilling at Basin East and geophysics suggests that the
higher-grade Upper Clay layer seen at BE could be relatively continuous, and
we look forward to evaluating its potential further and following it into our
other claims (Basin East Extension and Basin North), where we believe it may
also be present. With all the exploration work Bradda has done since its IPO
last July, alongside the updated MRE (RNS dated 29 March 2022) SRK had the
confidence to define an upgraded Exploration Target of up to 6Mt of LCE at our
Basin Project.

"

"The increase in LCE at Basin East and assessment of exploration potential is
also extremely encouraging and highlights the resource growth potential. The
total drilled area at Basin East covers 2.4% of our 47km(2), which previously
only covered just under 2%. That's an increase of 120 kt of LCE over a
drilled area increase of 0.2km(2), and we now have a 6Mt LCE exploration
target at the Basin Project.

"With more drilling planned in Q2 at Basin East Extension and Basin North we
have a number of material catalysts planned for 2022 and believe that 2022 is
going to continue to be an exciting year of resource growth for Bradda Head.
BHL is excellently placed to take full advantage of the near-term resource
growth potential at our sedimentary lithium assets in Arizona and we look
forward to providing further updates throughout the year."

 

 

Background

BN and BEE are in close proximity to BE (see map:
https://www.braddaheadltd.com/media/image-library/), the Company has an
updated Resource at BE.

The updated Mineral Resource Estimate ("MRE") at Basin East, which has been
reported by SRK Consulting (UK) Ltd ("SRK") in accordance with the terminology
and definitions given in the JORC Code (2012), comprises: an Indicated Mineral
Resource of 17.6 Mt at an average grade of 912 ppm Li and 3.4% K for a total
of 85 kt LCE and an Inferred Mineral Resource of 57.6 Mt at an average grade
of 717 ppm Li and 3.3% K for a total of 220 kt LCE.

The 2022 Mineral Resource update followed the completion of a 10 hole 1,110m
diamond core drilling programme which was completed in November 2021 (RNS
dated 17/11/2021). The 185kt LCE 2018 MRE was calculated based on a 14-hole
924m reverse circulation ("RC") programme.

The drilling coverage at BE has increased by c.20% in area since 2018 and has
provided some deeper intersections to add some previously missed Lower Clay.
Furthermore, newly acquired geophysical data has allowed extrapolation of the
MRE further from the drillholes than was possible previously. The combination
of these changes has resulted in an increase in the MRE.

In the MRE model, the Upper Clay zone and higher-grade zone are thickest at
the northwestern edge, whilst remaining open to the west and northwest, and
are expected to continue under cover in the adjacent BEE claim. Geological
mapping and geophysical surveys indicate similar clay layers are present in
Bradda Head's other claims beyond BEE in BW and BN. As such, with further
drilling we see excellent potential to increase the resource base
substantially.

It's important to note that some 75% of the updated total LCE is in the Upper
Clay which has a grade of c.850 ppm and c.20% of the updated total LCE sits
within a newly defined High-Grade layer within the Upper Clay which has a
grade of c.1,300ppm Li. The High-Grade and Upper Clay zones thicken towards
the northwest extent of the drilled area into BHL's BEE claim and could
potentially form part of a higher-grade mining operation than previously
planned. This could be mined early in the mine plan as the High-Grade zone
sits in the upper part of the deposit.

An Exploration Target for the Basin Project of between 300 to 1,300 Mt of
material grading between 600 to 850 ppm Li, equivalent to between 1 and
6 Mt LCE, has been identified covering the claims BN, BE, BEE and BW and
BWE. This is based on an assessment of the updated Mineral Resource LCE per
unit area, an estimated range of likely grades based on the MRE and an
assessment of the extent of mapped clay and hangingwall lithologies in the
undrilled parts of the Basin Project licence areas(See map:
https://www.braddaheadltd.com/media/image-library/).

The Company is currently in the process of obtaining permits for 120 holes at
BEE, of which it expects to drill 20 holes in Q2 2022. The Company has
received conditional permission to drill 10 holes at its BN Claim, and
anticipates that drilling will commence in Q2 2022.The difference in the scale
of the programmes is that BEE is a state lease, whereas BN is a Bureau of Land
Management (BLM) claim (See map for all Basin Project claims/leases:
https://www.braddaheadltd.com/media/image-library/).

An additional 14-hole sonic drill programme (1,175m) has been approved at BE
which will form part of the expected resource estimate at BEE and BN when they
are permitted and drilled later this year. BEE is adjacent to BE, and BN joins
with BEE's northern border (See map:
https://www.braddaheadltd.com/media/image-library/).

 

 

Contact:

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

 Denham Eke, Finance Director

 Beaumont Cornish (Nomad)           +44 20 7220 1666

 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

 Oliver Lamb

 Adam Baynes

 

 

Notes to Editors

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 17.6Mt at an
average grade of 912ppm Li and 3.4%K for a total of 86kt LCE and an Inferred
Mineral Resource of 57.6Mt at an average grade of 717ppm Li and 3.3%K for a
total of 220kt LCE. In the rest of the Basin Project SRK has estimated an
Exploration Target of between 300 and 1,300Mt of material grading between 600
and 850ppm Li which is equivalent to a range of between 1 and 6Mt 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 US OTCQB market with a ticker of BHLIF.

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