REG - Bradda Head Lithium - Channel Sample Results at San Domingo Project

Bradda Head LithiumAnnouncement

03/09/2024 07:00

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RNS Number : 5993C  Bradda Head Lithium Ltd  03 September 2024

 

 

03 September, 2024

 

Bradda Head Lithium Ltd

("Bradda Head" or the "Company")

 

Significant drill targets developed following channel sample results at San
Domingo Pegmatite Project

Share Option Repricing

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI,), the North America-focused
lithium development group, is pleased to announce the results from surface
channel samples at the San Domingo ("SD") pegmatite project in central
Arizona. The Dragon target contains 8.80 meters of 0.97% Lithium Oxide
("Li(2)O") and 10.40 meters of 0.68% Li(2)O, sampled from two separate
prospects on the same pegmatite. Elevated cesium ("Cs") is also consistently
present and elevated in the channel and rock chip samples, an important
element for the Department of Energy ("DOE") and Cs is of significant economic
value.

 

Channel Sample Highlights:

 

·    8.80m @ 0.97% Li(2)0 with 174 ppm Cs at Dragon South

·    10.40m @ 0.68% Li(2)O with 341 ppm Cs at Dragon South

·    4.80m @ 0.41% Li(2)O with 336 ppm Cs at Dragon North

·    9.00m @ 0.29% Li(2)O with 325 ppm Cs at Dragon North

·    4.70m @ 0.28% Li(2)O with 176 ppm Cs at Dragon North

·    1.90m @ 0.29% Li(2)O with 609 ppm Cs at Dragon South

 

Highlights

·    Significant new drill tagetes developed at San Domingo following on
from a detailed surface channel sampling programme

·    A total of 84 channel samples were collected from Dragon South and
North targets at the San Domingo project and an additional 83 grab rock chip
samples from across the project;

·    The Dragon channel sampling focused on historic prospects where
exposure was fair to excellent;

·    Dragon South contains an excellent exposure on a northeast trending
pegmatite where sampling was conducted across its two prospects, one of which
is a large cut exposing abundant coarse spodumene crystals and bordered by
massive quartz, typical LCE pegmatite zoning;

·    Elevated Cs is also noted across the Dragon targets with channel
samples running as high as 994 ppm and grab samples up to 1,317 ppm, important
as the DOE considers Cs a strategic and critical metal and actively seeking
it;

·    Three open cuts at Dragon North were sampled, some of which consist
of very coarse spodumene and lepidolite, containing 4.80m at 0.41% Li(2)O;

·    A geographically dispersed set of 52 mica samples were collected from
pegmatites and analyzed with Libs, several revealing highly fractionated
pegmatites with robust lithium content and excellent K/Rb ratios,
fractionation across pegmatite swarms implicates higher degree of  lithium
development;

·    The Company has commenced drill hole permitting on the Dragon
targets, proposing up to 40 drill sites to thoroughly test shallow lithium
mineralization;

·    The Company continues building additional geochemical and geological
data across the project with an emphasis on supporting shallow drilling at
Midnight Owl, Lone Giant, Thunder, White Ridge, Lower Jumbo, and Morning Star.

 

Ian Stalker, Executive Chair, commented:

 

"These surface channel samples collected at the Dragon targets highlight just
a few of the objectives the Company is building for the next drilling program
and gaining encouragement on the extent of lithium mineralization across the
entire property. As we explore new or orphaned areas, we continue to uncover
new targets worthy of drill testing and hope to continue bringing value to the
San Domingo pegmatite project."

 

The Dragon target is broken into two areas, North and South (Figure 1, Table
1). The Dragon South target (Figure 2) contains several historic prospects
sunk on lithium-bearing pegmatites, mineralization that exhibits an abundance
of large spodumene crystals, >1.0m. Prior surface rock chip samples contain
upwards of 7.99% Li(2)O and several >500 Cs (overlimits not assayed),
spurring interest to identify the nature of mineralization and establish a
mapping and sampling program. This led to commencing a channel sampling
program for better information on the lengths of potential lithium
mineralization in outcrop and possible development of drill targets.

 

Figure 1. Location map of property, geology, drilling, Dragon North and South
targets to lower left of map

 

The channel sampling targeted both naturally outcropping pegmatite, dozer cut
pegmatite, and historically excavated/mined pegmatite across both Dragon South
and North. Naturally exposed samples returned lower lithium values likely due
to surface weathering, but new (since 1945) exposures detected better lithium
values as the fresher spodumene reveals less exposure to weathering. The best
interval contains 8.80m at 0.97% Li(2)O with 174 ppm Cs, and 131 ppm tin
("Sn") and was collected from an excavated pit above a larger open cut on the
Dragon South target (Table 1, Figure 3). The lower cut contains 10.40m at
0.68@ Li(2)O with a high of 2.13% Li(2)O over 1.5m and the entire interval
contains 341 ppm Cs, 107 ppm Sn, and 89 ("Tantalum Pentoxide") Ta(2)O(5). The
overall apparent width of mineralized pegmatite at this location is at least
12 meters, although the full exposure is 20 meters in width.

 

Figure 2. Dragon South channel and rock chip samples, geology, access routes

 

Several exposures are found at Dragon North (Figure 4) and courtesy of
historic mining plus excavation on lithium bearing pegmatites. The south end
of the northeast-southwest trending pegmatite contains spodumene>lepidolite
whereas the northern extent has lepidolite>spodumene, noting the very
coarse nature of muscovite (pink lepidolite) intergrown with quartz and minor
feldspar. Recent excavations contain 4.80 meters at 0.41% Li(2)O, 336 ppm Cs,
and 121 ppm Ta(2)O(5) in a lepidolite dominated zone adjacent to a 9.00m
interval containing 0.29% Li(2)O, 325 ppm Cs, and 134 Ta(2)O(5). A separate
pegmatite 30 meters to the northwest has excavations exposing lithium bearing
pegmatite with channel samples running 4.70m at 0.28% Li(2)O with 176 ppm Cs
and 103 ppm Ta(2)O(5). Further to the north on the same pegmatite, a small
prospect contains minor spodumene and lepidolite, carrying 2.50 meters at
0.19% Li(2)O, 27 ppm Cs, 134 ppm Sn, and 534 ppm Ta(2)O(5), revealing
localized very elevated tantalum values.

 

Figures 3a & 3b above. Dragon South Li2O ppm (left) in channel samples
8.80m @ 0.97% Li(2)O upper left channel, 10.40m @ 0.68% Li(2)O lower right,
and Cs ppm (right) in channel samples, upper left 8.80m, 174ppm Cs, lower
right 10.40m, 341 ppm Cs

 

Figure 4. Dragon North channel and rock chip samples, geology, access routes

 

 

Additional and new surface grab rock samples include 2.40%, 1.72%, 1.64%,
1.51%, 1.30% and 1.20% Li(2)O from various outcrops across both Dragon South
and North targets. Other elements of significant interest are Cs with values
up to 1,317 ppm, Sn up to 358 ppm, and Ta up to 437 ppm from select samples
across Dragon. Surface sampling continues across the property to support the
potential for channel sampling.

 

Dozens of muscovite ("mica") samples were collected across the project and
scanned by a third party with a Libs hand-held scanning device, resulting in
identification of several highly fractionated pegmatites, including the Dragon
area pegmatites. Libs are widely used across the industry and provide lithium,
potassium, and rubidium geochemistry of mica minerals within pegmatites. The
Libs data helps identify and prioritize the targets across the project.
Further work into the results will continue and possibly expanded where rock
geochemistry is inconclusive.

 

Table 1.

 

 Dragon South
 Interval_m  Li(2)O %  Cs_ppm  Sn_ppm  Ta(2)O(5)
 8.80        0.970     174     131     45
 10.40       0.680     341     107     89
 6.20        0.004     509     25      26
 1.90        0.290     609     253     137
 4.70        0.070     300     25      57
 Dragon North
 13.30       0.130     139     60      92
 2.30        0.040     42      330     132
 4.80        0.410     336     25      121
 2.50        0.190     27      134     534
 4.70        0.280     391     25      103
 5.60        0.150     391     25      138

 

QAQC

Channel samples were cut in the field under the supervision of Joey Wilkins.
Sample location sites were labelled, rock channels were bagged, tied-off, then
transported to the core shed under lock and key. 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 (Bradda Head)

Joey Wilkins, B.Sc., P.Geo., is Chief Operating Officer at Bradda Head 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.

 

Share Option Repricing

 

The Company also announces that pursuant to its share option plan, it has
reduced the exercise price of 9,000,000 outstanding share options ("Existing
Options").

 

The repricing applies to Existing Options previously granted to, amongst
others, certain Directors and Management of the Company pursuant to the
Company's share option plan. The Existing Options will be repriced from an
exercise price of £0.06 (CA$0.10), £0.09 (CA$0.15), £0.105 (CA$0.15), and
£0.18 (CA$0.29), as applicable, per ordinary share to £0.017 (CA$0.03) per
ordinary share.  No other terms of the Existing Options are being amended.
The repricing is being taken in response to the current market challenges
impacting the lithium sector, a reduction in the ensuing Company's share
price, and to better align with the recent share options granted to certain
officers and directors of the Company.

 

The repricing of the Existing Options is subject to the approval the TSX
Venture Exchange, as well as by a majority of votes cast at a meeting of
shareholders of the Company, excluding the votes cast by shareholders who are
subject to the repricing of the Existing Options.  In the event that any of
such approval is not obtained, the Existing Options will not be repriced.  No
Options may be exercised until such approvals are obtained.  Disinterested
shareholder approval is expected to be sought at the Company's next annual and
special meeting of shareholders, anticipated to be held in November 2024.

 

Directors and persons discharging managerial responsibilities ("PDMRs")
included in the repricing are detailed in the table below:

 

 Director/ PDMR  Options Subject to Repricing  Total Options Held
 Ian Stalker     5,250,000                     19,250,000
 Joey Wilkins    1,500,000                     2,500,000
 Piotr Schabik   500,000                       1,500,000

 

The repricing of the Existing Options previously issued to insiders of the
Company constitutes a "related party transaction" under Multilateral
Instrument 61-101 - Protection of Minority Security Holders in Special
Transactions ("MI 61-101").  The repricing is exempt from the formal
valuation requirements of Section 5.4 of MI 61-101 pursuant to subsection
5.5(b) of MI 61-101 as no securities of the Company are listed on certain
exchanges specific by MI 61-101.  It is also exempt from the minority
shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to
Section 5.7(a) of MI 61-101 insofar as the fair market value of such repricing
is less than 25% of the Company's market capitalisation (as such term is
defined in MI 61-101).

 

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 Chair

 Denham Eke, Finance Director

 Beaumont Cornish (Nomad)           +44 20 7628 3396

 James Biddle / Roland Cornish

 Panmure Liberum (Joint Broker)     +44 20 7886 2500
 Kieron Hodgson / Rauf Munir

 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 / 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 a Measured Mineral Resource of 20 Mt at an
average grade of 929 ppm Li for a total of 99 kt LCE and an Indicated
Mineral Resource of 122 Mt at an average grade of 860 ppm Li and an
Inferred Mineral Resource of 499 Mt at an average grade of 810 ppm Li for a
total of 2.81 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 and
on the TSX Venture Exchange with a ticker of BHLI.

 

 

Technical Glossary

 

 Kt                          Thousand tonnes
 %                           Percent
 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
 Li(2)O %                    Lithium Oxide
 Cs                          Cesium
 Ta(2)O(5)                   Tantalum pentoxide
 K                           Potassium
 Rb                          Rubidium

 

 

 

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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