REG - Bradda Head Lithium - San Domingo Channel Sample Results

Bradda Head LithiumAnnouncement

01/10/2024 07:00

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RNS Number : 3378G  Bradda Head Lithium Ltd  01 October 2024

01 October, 2024

 

Bradda Head Lithium Ltd

("Bradda Head" or the "Company")

 

Channel Samples at Midnight Owl Return Excellent Lithium Grades and New Target
Identified at The San Domingo Pegmatite Project

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI,), the North America-focused
lithium development group, is pleased to announce the results from surface
samples at the San Domingo ("SD") pegmatite project in central Arizona. New
channel samples at the Midnight Owl target contain high grade intercepts of
8.40 meters of 1.17% Lithium Oxide ("Li(2)O") with 623 ppm Cs (Cesium) and 625
Ta(2)O(5) (Tantalum Pentoxide). A new target, Ruby Soho, was also discovered
as part of the Company's follow-up on anomalous soil samples.

 

Channel and Grab Sample Highlights:

 

·    8.40m @ 1.17% Li(2)0 with 623 ppm Cs and 625 Ta(2)O(5) at Midnight
Owl

·    Seven grab rock samples ranging from 0.25% to 3.57% Li(2)0 on newly
discovered Ruby Soho Pegmatite

·    Grab sampling identifies 3.97% Li(2)O on spodumene-bearing pegmatite
outcrop at the Thunder target

·  The abundance of Cs and Ta present in the Midnight Owl Samples holds
potential for excellent by-products (Ta(2)O(5) at $300/kg, CsCO(3) at
$142/kg)

·    Both Ruby Soho and Thunder are accessible by road, with clear drill
targets emerging

·  Bradda's management believes that with the completion of the next
drilling program, there will be sufficient data to develop a 43-101 compliant
resource on not only one but several pegmatite bodies

 

Project Highlights

·    New channel sampling from the Midnight Owl target reveals significant
lithium mineralization zones outside the main mine cut and on historic benches
near drill holes SD-22-03, 04, and 05 (PR 06 February, 2023). As reported,
Holes 03 and 05 contain 5.36m at 1.20% and 4.27m at 1.86% Li2O starting from
surface, and appear to represent different portions of the same pegmatite.

·    These new Midnight Owl channel samples also contain exceptional
Cesium at 623ppm and 625 Tantalum Pentoxide, both critical metals for the
Department of Energy ("DOE") and potential byproducts at San Domingo.

·    Additional nearby rock chip samples located 35m to the southwest on
the same bench contain 2.40%, 1.17%, and 0.61% Li2O from outcrops with visible
spodumene and lepidolite.

·    A new target called Ruby Soho was discovered about 1.5km east of
Midnight Owl and mapping reveals a single pegmatite running 1.5 to 5.0m in
width and exposed for over 250m, containing abundant visible spodumene.

·    Seven grab samples from Ruby Soho have a range of 0.25% to 3.57%
Li(2)O and clearly represent a new target that is accessible by road.

·    A previously identified target, Thunder, was sampled, identifying
outcrops with excellent high grades with one sample returning 3.97% Li(2)O.
The target has not been drill-tested and has road access.

 

Ian Stalker, Executive Chair, commented:

 

"The identification of exceptional lithium values on new and older targets
illustrates the ever-present and shallow potential for discovery of lithium
mineralization at San Domingo. We continue to discover excellent
mineralization on the surface around the Midnight Owl prospect and these new
channel samples demonstrate that the potential for shallow, open cut mining is
possible at San Domingo. Furthermore, the highly elevated cesium values
constitute a highly strategic opportunity at San Domingo as the element is a
distinctly sought after by the DOE and is a critical metal as designated by
the USA."

 

Figure 1. Location map, North portion of property

 

Midnight Owl Channel Samples

A total of 15 new channel samples were collected at Midnight Owl on a historic
bench (or hillside bulldozer cut) in pegmatite outcrop, exposing large
spodumene crystals. Several large spodumene were newly exposed in outcrop upon
clearing vegetation growing alongside the bench and determined to be
significant, warranting channel sampling. The channel sampling returned
promising values over the 8.40m with 1.17% Li(2)O and a remarkable 623ppm Cs
and 625 Ta(2)O(5). The samples were collected across a pegmatite exposure that
represents surface mineralization potentially correlative with shallow lithium
intercepts in 2022 core holes, 20 meters to the northwest. As reported on 6
February 2023, the holes, SD-22-03, 04, and 05, encountered 5.36m, 3.29m, and
4.27m of 1.20%, 1.01% and 1.86% Li(2)O respectively from surface, potentially
suggesting sub-horizontal lithium mineralization in this pegmatite body. The
prior channel sampling in the Midnight Owl Pit (PR 08 April, 2024) highlighted
2.90 meters of 2.31% Li2O, but has different structural context to the new
channel sample results and appears to represent a separate pegmatite body.

 

The Company is conducting a re-interpretation of the shallow drill hole
segments at Midnight Owl in context of the surface data as there is the
potential for a broader, sub-horizontal lithium mineralized body. The
pegmatite covering this area on surface measures 250 meters long by 80 meters
in width. Thickness of the sub-horizontal and lithium mineralized pegmatite is
interpreted to vary between 5 and 10 meters. Further detailed mapping is
planned to ascertain better geologic and structural context and aid
interpretation with re-examination of the drill core for structural data.

 

Figure 2. Midnight Owl Channel and Rock Samples, Drill Hole Traces, &
Prospective Pegmatite (outlined in red line).

 

Lone Giant Channel Samples

Channel sampling conducted at Lone Giant was conducted opportunistically as
continuous outcrops were limited or difficult to cut with the handheld core
saw. The exposures are also in a large wash where the spodumene is evident but
degraded due to erosion and seasonal water flow. The best sampling comes from
3.60m of 0.05% Li2O, with 385ppm Cs. The highly elevated Cs is an excellent
indication of well mineralized pegmatite, but where lithium is locally
weathered. The area remains a viable target as prior grab samples contain up
to 0.43% Li2O and spodumene is visible over several outcrops on the pegmatite.

 

Recon Sampling

A new target called Ruby Soho was discovered, located 350 meters east of Lone
Giant, consisting of 250 meters of exposed pegmatite. The seven samples
collected along the 250-meter stretch have a lithium oxide range from 0.25% to
3.57% Li(2)O on a pegmatite that ranges in widths of 1.5 to 5.0 meters on the
surface. This target has never been drill-tested and has road access to the
highest-grade samples. One sample from the Thunder target ran 3.97% Li2O on a
north-south trending pegmatite that has not been drill-tested. This pegmatite
has limited strike length and good road access for future drill-testing.

 

QAQC

Channel samples were cut in the field under the supervision of Joey Wilkins.
Sample location sites were labelled, rock channels were bagged, tied-off, 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 channel and rock chip 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 (Bradda Head)

Joey Wilkins, B.Sc., P.Geo., is Chief Operating Officer at Bradda Head 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 Chair

 Denham Eke, Finance Director

 Beaumont Cornish (Nomad)           +44 20 7628 3396

 James Biddle / Roland Cornish

 Panmure Liberum (Joint Broker)     +44 20 7886 2500
 Kieron Hodgson / Rauf Munir

 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 / Josephine Clerkin     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 a Measured Mineral Resource of 20 Mt at an
average grade of 929 ppm Li for a total of 99 kt LCE and an Indicated
Mineral Resource of 122 Mt at an average grade of 860 ppm Li and an
Inferred Mineral Resource of 499 Mt at an average grade of 810 ppm Li for a
total of 2.81 Mt 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
 %                           Percent
 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
 Li(2)O %                    Lithium Oxide
 Cs                          Cesium
 Ta                          Tantalum
 Ta(2)O(5)                   Tantalum pentoxide
 K                           Potassium
 Rb                          Rubidium

 

 

 

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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