REG - Bradda Head Lithium - Positive San Domingo Metallurgical Results

Bradda Head LithiumAnnouncement

20/11/2023 07:00

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RNS Number : 9629T  Bradda Head Lithium Ltd  20 November 2023

 

 

 

 

 

20 November 2023

 

Bradda Head Lithium Ltd

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

 

Positive preliminary metallurgical results on samples from Jumbo Spodumene
Pegmatite target at San Domingo Pegmatite District, Arizona

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI, OTCQB:BHLIF), the North
America-focused lithium development group, is pleased to announce positive
metallurgical heavy liquid separation ("HLS") results from test work
undertaken by the SGS Metallurgical Process Facility in Lakefield, Canada
("SGS Canada") on quartered drill core samples taken from its Jumbo
Exploration Target at San Domingo District, Arizona, USA.

 

Overview

·     Three composite samples were selected for test-work, representing
the low grade, medium grade and high-grade environment reflected in the maiden
2022/2023 exploration programme previously reported from drilling undertaken
at the Jumbo Target in the San Domingo Pegmatite district in Arizona.

 

·    After discussion with SGS Canada, an initial HLS test was undertaken
to evaluate the potential for dense media separation ("DMS") to produce a
sellable Li-oxide concentrate product (see attached test work flowsheet). This
test work is predominantly preliminary in its approach. The measured head
grade of the samples were 3.05% Li(2)O, 1.03% Li(2)O and 0.34% Li(2)O,
reflecting the high, medium and low-grade range seen in our drilling results
to date.

 

·    Despite the preliminary nature of this test-work programme, it was
highly encouraging to see the medium-grade sample produce an 'in spec' lithium
oxide concentrate product with a 6.0% Li(2)O grade and an interpolated
recovery of contained lithium to the concentrate of 50.3%, at a ¼" size crush
size. Tailings rejection was considered efficient in this scenario with the
rejection of 60.6% mass and a loss of only 2.1% lithium.

 

·    Alternately, at a crush size of 3/8" (9.5 mm), a concentrate was
produced with a grade of 5.5 % Li(2)O at a 55.5% recovery of contained lithium
oxide. This is still considered in spec in the current market. 'In spec' Li
concentrate currently sells in the Lithium-Oxide Spot Market for circa
US$2,100/ tonne.

 

·    Using the medium-grade sample, the flotation feed, a combination of
middling product from the HLS testing at a crush size of ¼" and under sized
fraction (minus 0.85 mm), recorded an upgraded value of 1.57% Li(2)O with Li
distribution of 47.0% and a mass distribution of 30.5%.

 

·    At our request, SGS Canada also undertook Tescan Integrated Mineral
Analyzer analysis of the medium grade sample, finding a dominance of spodumene
as the primary lithium mineral with possible, but very minor petalite and
eucryptite, along with muscovite, minor beryl, tourmaline, calcite, and
apatite. The overall iron content is low, <1.0%, indicative of a very good
concentrate product.

 

·    Bradda is currently undertaking a second drilling programme at its
San Domingo Pegmatite District with approximately 75% of the programme being
complete. Assay results to date were released on November 12 2023, highlighted
by drill hole SD-DH23-049 which contains 6.35m @ 0.83% Li(2)O followed by
3.05m @ 1.03% Li(2)O, with more results arriving in the near future.

 

·    Metallurgical test work is now currently on hold whilst Bradda
collects more representative samples from this next phase of drilling to
undertake a more detailed test work programme.

 

Bradda has 33km(2) license area under its control within this exciting
pegmatite district. It is a historical lithium mining environment with over 7
historic mines that focused on shallow open pit extraction of spodumene during
the late 1940s and early 1950s. Bradda commenced drilling in H2 of 2022
(7,300m) and is on its second campaign of 6,100 meters of core drilling,
designed to expand on existing mineralized intercepts and drill-test newly
developed high-quality lithium in pegmatite targets derived from soil sampling
and surface mapping.

Diamond core drilling continues at the San Domingo Pegmatite project with
approximately 75% of the program completed, where many of the holes have
encountered long intervals of pegmatite with visible spodumene mineralization.
Assay results have been slow to arrive due to the summer rush at the
laboratory, but drilling progress is good. Additional permits were received
from the State and BLM, sites are being constructed at the historic Morning
Star lithium mine and drilling there is planned to commence shortly. The
Company hopes to have news on San Domingo within the next few weeks as
preliminary results have started to arrive.

 

Ian Stalker, Executive Chairman, commented:

"These results are highly encouraging, and quite simply better than expected
from what can only be described as preliminary non-detailed scoping test work.
To produce an 'in spec' sellable gravity concentrate reflecting over 50%
recovery to the concentrate from a sample grading 1.03% Li(2)O on first pass
test work is simply mouth watering. Gravity Concentration, in this case,
otherwise referred to as dense media separation, is a standard, low cost,
simple process with a small, relatively non-invasive foot print.

 

"It is the kind of process operation that is quick to design and install, and
yet can deliver very attractive economic returns. We are therefore highly
encouraged, and when the next phase of drilling at San Domingo is complete and
sufficient sample material is available, we will revert quickly to SGS with a
more detailed test work and study programme to further the above objective."

 

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 Head of North America 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 37 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.

 

Independent Qualified Person (SGS)

The technical content relating to metallurgical testing disclosed in this
document was reviewed and approved by Curtis Mohns, P.Eng., Senior
Metallurgist at SGS Canada.  Mr. Mohns has an M.Sc. in Mineral Processing
Engineering and 29 years of related professional experience.  Mr. Mohns is a
Qualified Person as defined under NI 43-101.

 

 

 

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.

 

ENDS

 

 

Contact:

 

 Bradda Head Lithium Limited        +44 (0) 1624 639 396
 Ian Stalker, Executive Chairman

 Denham Eke, Finance Director

 Beaumont Cornish (Nomad)           +44 20 7628 3396

 James Biddle/Roland Cornish

 Panmure Gordon (Joint Broker)      +44 20 7886 2500
 John Prior / Hugh Rich

 Shard Capital (Joint Broker)       +44 207 186 9927
 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 Lithium
Carbonate Equivalent ("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
1.0 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, on the TSX
Venture Exchange with a ticker of BHLI, and on the US OTCQB market with a
ticker of BHLIF.

 

Technical Glossary

 

 Li(2)O      Lithium Oxide
 pegmatite   A pegmatite is an igneous rock showing a very coarse texture, with large
             interlocking crystals usually greater in size than 1 cm (0.4 in) and sometimes
             greater than 1 meter (3 ft). Most pegmatites are composed of quartz, feldspar,
             and mica, having a similar silicic composition to granite. However, rarer
             intermediate composition and mafic pegmatites are known.
 Spodumene   Spodumene is a pyroxene mineral consisting of lithium aluminium inosilicate,

           LiAl(SiO(3))(2), and is a source of lithium. Spodumene contains 3.73% lithium.

 Lepidolite  Lepidolite is a lilac-gray or rose-colored member of the mica group of

           minerals with chemical formula K(Li,Al)3(Al,Si,Rb)4O10(F,OH)2. 2  3  It is the
             most abundant lithium-bearing mineral 4  and is a secondary source of this
             metal. It is the major source of the alkali metal rubidium. Lepidolite
             contains 3.58% lithium.

The formula to convert lithium in parts per million (PPM) to lithium oxide is
to multiply Li ppm times 2.1527, then is reported in percent.

 

 

 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.

 

 

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.

 

 

 

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