REG - Bradda Head Lithium - Channel Sampling at San Domingo and Basin Update

Bradda Head LithiumAnnouncement

08/04/2024 07:00

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RNS Number : 5809J  Bradda Head Lithium Ltd  08 April 2024

 

 

08 April, 2024

 

Bradda Head Lithium Ltd

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

 

Bradda Head Reports High-Grade Channel Sampling at San Domingo

and

Basin Project Update

 

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") Project in central Arizona. The
results included 5.00m of 2.33%, 4.10m of 2.81%, and 4.00m of 1.26% Li(2)O at
the White Ridge Target and 5.30m of 1.25% Li(2)O at Morning Star. These and
other surface samples collected were designed to augment the Phase II, 2023
drilling program as well as determine that this technique can and will be
applied to future surface exploration programs planned in Q3 of this year.

 

Sample locations include: Morning Star, South Morning Star, White Ridge, and
Midnight Owl.

 

Channel Sample Highlights:

 

·    5.00m @ 2.33% Li20 at White Ridge

·    4.10m @ 2.81% Li2O at White Ridge

·    4.00m @ 1.26% Li2O at White Ridge

·    5.30m @ 1.25% Li2O at Morning Star

·    4.00m @ 0.43 % Li2O at South Morning Star

·    2.90m @ 2.31% Li2O at Midnight Owl

 

Highlights

 

·    A total of 77 samples were collected from strategic targets across
the San Domingo project, with locations designed to supplement drill holes
that contain lithium (spodumene) mineralization, particularly those that could
result in mineable resources;

·    Some locations were chosen as a result of newly exposed spodumene
bearing pegmatites at new drill sites;

·    White Ridge channel samples correspond to drill hole SD-DH23-072,
confirming continuity of spodumene rich pegmatite, indicates mineralization is
open to the north and at depth;

·    Channel samples at Morning Star drill site SD-DH23-090 cut, 5.30m at
1.25% Li2O, clearly connect and add confidence in continuity, building on
resource potential;

·    The channel samples at Midnight Owl likely connect to drill hole
SD-DH23-049 which had an intercept of 6.35m @ 0.83% Li2O and 3.05m of 1.03%
(see 11 Nov 2023 Press Release for details), a distance of 55m from surface.

·    The Company is capitalizing on surface lithium mineralization
exposures through channel sample techniques and by connecting to drill holes;
this continues to demonstrate open cut potential and in part, will drive the
next exploration program

 

 

Ian Stalker, Executive Chair, commented:

 

"We are highly encouraged by the surface channel samples taken at our San
Domingo Project, which was designed to test multiple sample locations and
provide further data that can be integrated into our planned work programme
whilst targeting resource development. We believe that these high-grade
samples bode extremely well for the potential of the asset in its entirety,
and reaffirms favourable results from both previous sampling undertaken by
Bradda, as well as the historic sampling.

 

Looking forward, the success of this cost-effective and efficient technique is
also a notable positive, particularly as we look to further our surface
exploration in Q3 of this year. This demonstrates our innovative thinking in
regard to how to best maximise our resources, and so far, we are having great
success."

 

Channel samples collected at White Ridge mine cut returned excellent results,
including 5.00m at 2.33% and 4.10m at 2.81% Li2O. Each of the three sample
groups at White Ridge are separated by roughly 2.0m, where sample material was
unavailable. The results strengthen Bradda's confidence that the values
represent viable thicknesses in these steeply dipping pegmatites. The sample
locations are correlative to drill hole SD-DH23-072 intercept which carries
5.18m @ 0.88% Li2O (see January 16, 2024 RNS for drill hole intercepts), see
Figure 1 below. The shallow mineralization in the mine cut and at depth in the
drill hole is open to the north.

 

 

Figure 1. White Ridge channel sample locations and values in percent, drill
hole intercept and surface projection.

 

The sampling on the surface at Morning Star and near the center of this
target, contains 5.30m a 1.25% Li(2)O, which is proximal to drill hole
SD-DH23-090 where 2.80m of 0.655% Li(2)O was encountered within a broader zone
of 17.43m at 0.18% Li(2)O (see Figure 2 below). Towards the north end of
Morning Star and proximal to drill hole SD-DH23-093 is an isolated 0.80m
sample running 5.337% Li(2)O. Hole SD-DH23-093 contains 8.99m at 1.20% Li(2)O,
which could link to the 5.337% surface sample, providing opportunity for
expansion in this part of Morning Star.

 

Mine cut channels collected at South Morning Star, resulted in 4.00m of 0.43%
Li(2)O. This interval is very proximal and above drill hole SD-DH23-099 which
contains 6.69m at 0.576% Li(2)O followed by 5.55mm at 1.034% Li(2)O.

 

The mine cut at Midnight Owl was sampled, resulting in a 2.90m interval
running 2.31% Li(2)O. This interval is the up-dip correlation to intervals
seen in our drill holes, such as hole SD-DH23-049 which has 6.35m at 0.83%
Li(2)O followed by 3.05m at 1.03% Li(2)O (see Figure 3). These drill hole
intercepts are interpreted to connect with the surface channel samples, a
vertical distance of 55m. Several areas within the historic mine were
inaccessible due to steep walls or obvious spodumene which was out of reach.
Outcrops above and outside the mine were also sampled to provide information
on natural exposures.

 

Figure 2. Morning Star channel samples and relevant drill hole intercepts.

 

Elevated to well mineralized lithium-rich channel samples also contained very
anomalous amounts of tin, tantalum, caesium, niobium, and rubidium, again
typifying the LCT nature of this pegmatite district.

 

Bradda Head considers this channel sample program a success and will continue
to implement this technique over the property on pegmatites that are
reasonably accessible, visibly lithium-bearing, offering the opportunity to
collect clean samples over continuous lengths and subsequently adding value to
future drill targeting.

 

The sampling procedures were designed for integration into 3-D models that
could lead to development of shallow resources. Sample cuts were made with a
diamond saw along contiguous exposures, adding certified standards for every
10(th) sample, similar to our drill holes. Cuts were dominantly horizontal and
along pegmatite exposures with a diamond handheld core saw. Two parallel cuts
were made at 4-5cm apart and the material between the cuts was sampled to
depths of 2-3cm.

 

 

 

Figure 3 above. Midnight Owl channel samples and nearby drill holes.

 

Figure 4 above. Location map of channel samples, property, drilling, land

 

Basin Drilling Update

 

The drilling at Basin is progressing well, with the Company completing its
second drill hole, encountering  >80 meters of Upper Clay in both holes
and finding encouraging thicknesses of between 25 to 35m of the Lower Clay
unit. The first two holes have been logged, sampled, and shipped to the
laboratory for analysis.

 

QAQC

Channel samples cut in the field under the supervision of Joey Wilkins.
Samples cuts were labelled and photographed, bags were tied-off, labelled,
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 (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.

 

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 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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