REG - Bradda Head Lithium - Receipt of US$2.5m Royalty Payment

Bradda Head LithiumAnnouncement

24/10/2023 07:00

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RNS Number : 0219R  Bradda Head Lithium Ltd  24 October 2023

 

 

 

 

 

24 October 2023

 

Bradda Head Lithium Ltd

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

 

Receipt of US$2.5 Million Royalty Payment and Next Basin Drilling Programme
Design Underway to Target a Further US$3 Million Royalty Payment

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI, OTCQB:BHLIF), the North
America-focused lithium development group, is pleased to announce receipt of
the US$2.5 million payment from the Lithium Royalty Corporation ("LRC") upon
confirmation of the Mineral Resource Estimate ("MRE") surpassing 1.0Mt Lithium
Carbonate Equivalent ("LCE") at the Company's Basin Project, Arizona
(September 28, 2023 PR). BHL has initiated a new drill plan for Basin with a
particular focus on placing sites to reduce surface impact and meet the
Company's objective of defining an inferred total MRE of +2.5Mt LCE. The
Company has also expanded the claim block to the north by adding an additional
2.84km(2) of claims over open ground which has exceptional exploration
potential.

 

 Overview:

·    BHL received payment of US$2.5 million from LRC following expansion
of the Basin resource by drilling 2,355m and 14 sonic holes tripling the
resource from 0.371Mt to 1.085Mt LCE.

 

·    The next plan and strategy for continued MRE expansion at Basin North
is underway with an emphasis on drilling holes at approximately 800m spacings.
The anticipated programme is for approximately 10 holes or +/- 3,000m of
drilling. The programme is pending Notice of Intent permit expansion with the
Bureau of Land Management ("BLM").

 

·    The Company has also expanded its land package, adding 2.84km(2) of
mining claims to the north of the Basin North claims, where land was open for
staking, increasing the Basin land package to 19.7km(2).

 

·    Our Exploration team in Arizona had identified the same stratigraphy
of clays plus silica nodules along the northern boundary of the new claims as
seen to the southwest in Basin West, a distance of over 4.0km.

 

·    The Company has confidence in achieving the next milestone of 2.5Mt
of LCE in situ, enabling BHL to receive a further US$3.0 million payment from
LRC under the Royalty Agreement.

 

·    SRK Consulting (UK) Ltd indicated that the Basin project has
potential to grow another 1.0 to 4.0Mt LCE but notes that this is prior to the
new license area added at Basin.

Ian Stalker, Executive Chair, commented:

 

"The receipt of our first royalty payment is a significant event,
substantiating the Company's confidence in its resource size and demonstrating
the value of the Basin project, in particular. Following this, we are
confident in proving up more than 2.5Mt of resource and triggering the final
royalty payment of US$3 million from LRC.

 

"In addition to resource expansion, we are also expanding our claims, with
indications that similarly positive geology extends to the north, into the new
claims. These new claims will also feed into the high-grade potential of
future resource expansion and will enable us to reach the 2.5Mt threshold for
the next royalty payment more quickly.

 

"Diamond core drilling continues at the San Domingo Pegmatite project with
approximately 50% 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 we understand drilling there is planned to commence
within the next week. The Company hopes to have news on San Domingo within the
next few weeks as preliminary results have started to arrive."

 

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.

 

 

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 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 (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 1.0 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 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

 

 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 based on 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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