REG - Bradda Head Lithium - Geophysical Survey at Basin Results

Bradda Head LithiumAnnouncement

14/02/2024 07:00

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RNS Number : 0406D  Bradda Head Lithium Ltd  14 February 2024

 

 

 

 

14 February 2024

 

Bradda Head Lithium Ltd

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

 

 Geophysical Survey at Basin Reveals Significant Gravity Low, New Drill
Targets.

Issue of Options

 

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused
lithium development group, announces results from a gravity survey conducted
at its Basin clay project in Arizona. The gravity survey was completed in late
2023 and post-processing has revealed a significant gravity low over the Basin
North area, interpreted as a deep, depositional centre for sedimentary rocks
and a deep basement rock geological setting. See Figure 1 below.

 

 

Figure 1: Residual gravity cbg survey, property boundary, drill holes, access.
Gravity low (dark blue) corresponds to thickening of the Upper Clay, contours
lines are 0.25mGal, density is 2.50 gr/cc. Red colors on the image correspond
to basement rock, Precambrian granodiorite and granitic rocks.

 

 

Summary:

·    Results and location of gravity low (deep blue) have been interpreted
to represent thicker clay beds, in both the Upper and Lower Clay sequences -
potentially substantially thicker than the previous reported lithium-in-clay
intersections from our current 43-101 compliant Resource.

·    Gravity results also led to the reconnaissance on ground 1.6km to the
north but contiguous to our existing Basin licences where new clay and
distinct marker bed silica nodules were discovered, indicating the entire clay
sequence sits in a shallow setting below post-mineral tuffs and basalt layers.

·    The results of the gravity survey and field reconnaissance prompted
the staking of 2.8km(2) of new lode and placer claims to the north on open BLM
land, expanding the clay potential significantly.

·    Excellent opportunity to grow the clay deposit to the north and
especially to the west where Bradda has over 11km(2) of property to explore,
and adds confidence to our intent to reach a new resource of +2.5mt of Lithium
Carbonate Equivalent (LCE) at the end of the upcoming drilling campaign.

 

The survey was the first-ever gravity geophysical survey of this kind
conducted at Basin and covers the entire property, having collected 130 points
across approximately a 32km(2) area. Sample stations were collected into
basement rock, which consists of Precambrian granites and granodiorite, and
then across the center of the Basin property which consists largely of clays,
tuffs, and basalt layers. Most importantly, the gravity low corresponds to the
thickening of the Upper Clay horizon and potentially the Lower Clay horizon,
providing encouragement that the Upper Clay continuing with similar thickness
to the north for another 2.7km from the last drill hole (BES23-14) in 2023.

 

An additional 39 lode claims (2.6km(2)) were added further to the north, in
order to secure opportunities across Basin North. These cover potentially
thick clay sequences and, in the process, discovered clay outcrops in the
northeastern portion of the newly added claims (see Figure 1 above). The clays
have similar attributes to what is visually seen at Basin East and Basin West
with silica nodules giving us confidence that the Upper and possibly Lower
Clays continue uninterrupted under tuffs, basalts, and fluvial conglomerates.

 

The gravity survey also covers Basin West, showing gravity lows corresponding
to lithium anomalous, >1,000ppm Li in clay outcrops, providing confidence
of extensive clay extent throughout the property to the west and northwest.

 

The survey was conducted by consultant Tom Carpenter, an expert in gravity
data collection for the last 35 years throughout North America. The data was
collected with a LaCoste and Romberg Model-G gravity meter number G-230. This
instrument is capable of sensitivities of +/- 0.005 mGal and had excellent
repeatability on 8 stations. A total of 130 gravity station locations were
collected with a Leica GPS Model GS15 to +/- 0.001 to 0.032 meters and
processed the data, producing excellent elevation control data. All
information was reduced and processed by Mr. Carpenter, who used his knowledge
and Geosoft Oasis montaj software to correct the data for terrain (elevation
changes) and removed all regional effects to produce complete bouguer and
residual gravity maps, and at different densities, to better reflect the
variable lithologic host rocks on the property.

 

Ian Stalker, Executive Chairman, commented:

"The results from this first-ever gravity based geophysical survey in our
Basin district in Arizona USA add to our confidence to reach our new target
resource no. of 2.5mt of LCE with a limited amount of further drilling. This
cost-effective campaign is designed to allow us to unlock a further US$3m
payment from LRC, the royalty company that has an existing royalty agreement
with us.

 

"The potential existence of thicker clay beds in both Upper and Lower Clay
sequences is hugely encouraging and reaffirms our understanding of our Basin
Project as an important resource for lithium-in-clay. The additional discovery
of the new clay and silica nodule beds to the north is indicative of
favourable open pit based mining conditions, further promoting the value of
this project.

 

"We look forward to commencing our new Basin focussed drilling campaign in the
very near future."

 

 

Issue of Options

The Company also announces that it has issued to certain of the Company's
Directors and Operational Team (together the "Recipients") an aggregate of
2,850,000 new Options representing 0.73% of the Company's issued share
capital, each at an exercise price of £0.015 (or C$0.034), representing a 33%
premium to market close on AIM and the TSXV on Tuesday, 13 February 2024.

 

Options awarded are subject to the following conditions (and the other terms
of the Stock Option Plan of Bradda Head (the "Plan")):

 

·    Options vest immediately following approval;

·    No performance or non-performance conditions attached to them;

·    Options are exercisable for a period of five years from date of
issue; and

·    The Options issued to each participant will lapse upon any
participant no longer being an employee or connected person remunerated by the
Company.

 

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

 

 Director/ PDMR  Current Options Held  New Options awarded  Total Options Held
 Ian Stalker     18,250,000            1,000,000            19,250,000
 Joey Wilkins    1,500,000             1,000,000            2,500,000
 Piotr Schabik   1,000,000             500,000              1,500,000

 

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

 

 

 

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
 Kieran Hodgson / 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
 Gal                         Unit of acceleration typically used in precision gravimetry.

 

 

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"), which is authorised and
regulated in the United Kingdom by the FCA and is a member of the London Stock
Exchange, is the Company's nominated adviser for the purposes of the AIM
Rules. Beaumont Cornish is acting exclusively for the Company and will not
regard any other person (whether or not a recipient of this announcement) as a
client and will not be responsible to anyone other than the Company for
providing the protections afforded to its clients nor for providing advice in
relation to the contents of this announcement or any other matter referred to
herein. Beaumont Cornish's responsibilities as the Company's nominated adviser
under the AIM Rules for Nominated Advisers are owed to the London Stock
Exchange and not to any other person and in particular, but without
limitation, in respect of their decision to acquire Ordinary Shares in
reliance on any part of this announcement. Beaumont Cornish has not authorised
the contents of this announcement for any purpose and no liability whatsoever
is accepted by Beaumont Cornish, nor does it make any representation or
warranty, express or implied, as to the accuracy of any information or opinion
contained in this announcement or for the omission of any information.
Beaumont Cornish expressly disclaims all and any responsibility or liability
whether arising in tort, contract or otherwise which it might otherwise have
in respect of this announcement.

 

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