REG - Bradda Head Lithium - Mobilization of Drilling & Ancillary Equipment

Bradda Head LithiumAnnouncement

04/03/2024 07:00

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RNS Number : 3621F  Bradda Head Lithium Ltd  04 March 2024

 

 

4 March 2024

 

Bradda Head Lithium Ltd

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

 

Mobilization of Drilling and Ancillary Equipment to Basin Project, Targeting
2.5MT LCE

 

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused
lithium development group, is pleased to announce the mobilization of
equipment to the Basin Project, Arizona to initiate Resource expansion
drilling with a six-hole program designed to significantly expand the
Company's lithium in clay Mineral Resource Estimate ("MRE"). This follows the
successful 2023 sonic drilling campaign which saw the "tripling" of BHL's
Inferred and Indicated MRE at Basin. This six-hole program will build upon
Bradda Head's 1.085MT Lithium Carbonate Equivalent (LCE) by drilling holes an
additional 1.2 kilometers towards the north on newly permitted drill holes.
The objective of this program is to add a minimum of 1.5MT LCE, surpassing the
benchmark of 2.5MT LCE which will trigger the final US$3 million royalty
payment from Lithium Royalty Company (LRC) to Bradda Head. The drilling
program is anticipated to finish towards the end of April, 2024.

 

Program Summary:

 

·    Six-hole core drilling program of approximately 8,800 feet (2,680m)
planned

·    Program anticipated to expand LCE from 1.085MT to >2.5MT

·    Step-out drill holes at 500 to 700m spacing to maintain Inferred
category of MRE

·    One hole will be drilled into Precambrian basement in center of
gravity low

·    Gravity low may represent extensively thick clays both in the Upper,
Lower, and Basal Red-Beds

·    Holes will test Lower Clay to expand tonnage potential and thicker
sequence correlative with gravity low which also has the potential for
exceptional lithium grades

 

Ian Stalker, Executive Chairperson, commented:

"After we completed the MRE in September 2023, we quickly realised the
unbridled potential to continue expansion of this important lithium-in-clay
resource in Arizona. Our geologists developed a plan, designed a new drilling
program and promptly engaged the BLM for an expansion of our Basin North
permit. We thank the BLM for delivering a positive decision and look forward
to embarking on this exciting drill program.

 

Not only are we hoping for sizeable expansion of this resource, but are
estimating the resource will grow from the current 1.085 MT of LCE  to over
2.5 MT, which will trigger an important US$3 million royalty payment from LRC.
We are confident this will be a successful programme, and, with the royalty
payment, the Company will be in an excellent position for the remainder of
2024 during the current softened lithium market."

 

 

 

 

General Background

The Company is building upon the 2023 MRE and NI-43-101 complaint report
completed by SRK Consulting (UK) Ltd and reported on 28 September, 2023. In
this prior PR, the Company reported the following in Table 1 below:

 

Table 1.

 Classification  Domain         Tonnes  Mean Grade        Contained Metal

                 Mt                     Li (ppm)  K (%)   LCE (kt)  K (kt)
 Indicated       Upper Clay     11      720       3.5     42        380

                 Upper Clay HG  6       1350      3.2     43        190
                 Lower Clay     -       -         -       -         -
                 SubTotal       17      940       3.4     85        570
 Inferred        Upper Clay     143     790       2.7     600       3,800

                 Upper Clay HG  48      1290      3.1     330       1,500
                 Lower Clay     19      690       2.8     70        530
                 SubTotal       210     900       2.8     1,000     5,800

 o  Mineral Resource statement has an effective date of 1 September 2023.

 o  The Mineral Resource is reported using a cut-off grade of 550 ppm Li and
 is constrained to an optimised open pit shell, which was generated using the
 following assumptions: lithium carbonate metal prices of 22,000 USD/tLCE;
 State of Arizona royalty (selling cost) of 6%; operating costs of 40 USD/
 tore; Li recovery of 72%; mining dilution and recovery of 0% and 100%; and pit
 slope angle of 45°.

 o  Tonnages are reported in metric units.

 o  Rounding as required by reporting guidelines may result in apparent
 summation differences between tonnes, grade and contained metal content which
 are not considered material.

 o  Conversion factor of Li metal to lithium carbonate equivalent (LCE) =
 5.323

 o  The figures above are reported on a gross basis given Bradda's 100%
 interest in the property

 

This new programme is targeting significantly thicker clay sequences,
consistent if not higher lithium grades and thicker lower clay sequence, with
the potential to also discover new clays within the nearly 2km(2) gravity low.

 

Bradda Head Lithium received an affirmative decision from the BLM on February
28(th) with confirmation that it could conduct exploration drilling on the
Basin North notice of intent (NOI) amendment and based on a reclamation bond
increase with permission to proceed on 3.8 acres of surface disturbance. Earth
moving equipment was mobilized to prepare drill sites and experienced core
drilling contractors brought in to conduct the drilling.

 

Like previous drilling programs conducted at Basin, drill holes will be
vertical, but when clay horizons are encountered the Company's plan is to
convert to a triple tube core capture technique which ensures high recovery
and provides the Company with many options for sampling, density measurements,
and geotechnical data for future studies.

 

Figure 1. Basin Drill Plan for 2024, prior drilling, geology, land, mineral
resource boundaries.

 

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 Chairperson

 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.
 MRE                         Mineral Resource Estimate

 

 

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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