REG - Bradda Head Lithium - San Domingo Update

Bradda Head LithiumAnnouncement

09/05/2023 07:15

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RNS Number : 6718Y  Bradda Head Lithium Ltd  09 May 2023

 

09 May 2023

 

Bradda Head Lithium Ltd.

 

Soil Sampling Indicates 9km Mineralised Trend at San Domingo and Further
Positive Assays

 

Bradda Head Lithium Ltd. (AIM:BHL, TSXV:BHLI, OTCQB:BHLIF) ("Bradda Head",
"Bradda", "BHL" or the "Company"), the North America-focused lithium
development company, is pleased to announce soil sampling results confirming a
9km mineralised trend along with further significant drill hole intercepts of
high grade lithium bearing minerals on multiple targets. These results were
from the Company's third and final set of assay results from its maiden
diamond core drilling programme at Bradda's 23km(2) San Domingo pegmatite
district in Arizona. This is a continuation of the first extensive drilling
campaign undertaken at San Domingo since the 1950's and is the maiden
programme under BHL.

 

Summary:

 

·    The assay results have now been received from the soil sampling
programme undertaken at San Domingo, with very promising results showing
priority targets along the complete 9km mineralised trend (see Figure 1).
Bradda's geologists have begun ground-truthing the identified soil anomalies,
finding numerous additional spodumene bearing outcrops not previously recorded
(see Figure 2), and further strengthening the district scale potential at San
Domingo.

·   Bradda Head finished a first pass phased 7,300m diamond core drilling
programme at its San Domingo lithium pegmatite district in Arizona in Q1 2023
(see Figures 4 and 5 below).

·   Lithium bearing minerals (spodumene and minor lepidolite) have been
identified in c.60% of the total holes completed and importantly the programme
has only tested just over 1% of the 23km(2) that Bradda holds in Arizona.

·    The first set of assays released in February (see PR dated 06
February 2023) and second set released in March (see PR dated 27 March 2023)
demonstrated high-grade visible lithium bearing intervals with the best result
intersected to date of 31.85 meters at 1.60% Li(2)O 1  in drill hole SD22-024.
The final set of assays has now been received with further encouraging
results.

·    This complete set of assays not only demonstrate significant
intersections of pegmatites with visible lithium minerals (spodumene and some
lepidolite) in the Northern Claim blocks (see Figures 6 and 7) but also that
BHL has intersections of visible spodumene at the Central Claim blocks too
(Lower Jumbo and Jumbo; see Figures 8, 9 and 10), strengthening the presence
of a 9km mineralised trend.

·    This first drill programme was focussed on shallow drilling to help
understand the structural and genetic controls at San Domingo. These shallow
intersections help us interpret what may be present at greater depth, similar
to what is seen in comparable LCT (Lithium-Caesium-Tantalum) systems in
Australia. Indications so far, demonstrate the potential for deeper feeder
systems as seen in other LCT systems (see Figure 3 for idealised San Domingo
cross-section).

·    High-grade intersections of lithium mineralisation have been detected
at shallow depths (from surface in some holes) in multiple locations across an
area in the Northern Claim block and Central Claim block at San Domingo (see
Figures 4 and 6).

·    Based on the success of Phase 1 at the Northern Claim block (see
Figure 2) as highlighted by the results noted above, Bradda Head commenced
Phase 2 (see Figure 3) at the Central Claim block and a detailed soil survey
over its 23km(2) land package (see PR dated 21 November 2022).

·    The wider soil survey programme was completed in late February and
along with an ongoing structural mapping programme, will be used to more
accurately and efficiently define Phase 3 drill programme targets (due to
start no later than H2 2023). This will build on the  Phase 1 and 2 results
and interpretation, and will explore the potential at the c.99% of our claims
at San Domingo that remain untested.

 

Highlights from final set of assays include:

 

Central Claims:

·    5.94m @ 1.22% Li(2)O in SD-DH23-046

4.72m @ 0.67% Li2O in SD-DH23-038a

Northern Claims:

·    6.52m @ 1.24% Li(2)O in SD-DH23-041

·    2.74m @ 2.12% Li(2)O in SD-DH23-042

·    1.77m @ 1.10% Li(2)O in SD-DH23-040

 

See maps below for locations of Northern and Central claim block drill holes
as well as cross-sections of results so far received; including cross-section
of Morningstar follow-up target modelled from historical drill data and
idealised cross-section showing potential at San Domingo. An updated corporate
presentation is now also available on the Company's website.

 

 

Charles FitzRoy, CEO of Bradda Head Lithium, commented:

 

"These final results are highly encouraging and set the scene for what we
believe has the potential to define a world class lithium pegmatite district
in Arizona, near vital infrastructure and battery end-users within the US and
the wider developing North American battery hub. The US is investing US$135bn
in its EV and critical minerals supply chain. All Bradda's assets are located
in the US for the US market, these results are therefore extremely supportive
of our business model. ESG is front and centre in our approach and we are
working to develop these assets with as low a carbon footprint as possible.

 

"Furthermore, this last set of results from this first drill programme at San
Domingo highlights further a distinct district scale potential with multiple
areas showing promising results and high-grade lithium intersections with
visible spodumene. As a result, Bradda is in the process of designing a
follow-up drilling programme in H2 of this year aimed at testing additional
ground within the much wider 23km(2) of lithium pegmatite claims and leases
held in Arizona. Funds are already in place for this work, and ongoing
exploration work by our geologists suggests that we have only just scratched
the surface of what we have at San Domingo with just over 1% of the area
tested from this first programme. We look forward to sharing further
developments of this exciting project.

 

"As well as progressing its pegmatite projects, Bradda Head recently announced
commencement of drilling at its Basin Project and a 2(nd) Resource update in
less than 12 months at its lithium in clay Basin project in Arizona. The drill
programme that has just commenced, we believe, will likely lead to further
resource growth at our flagship clay asset. With almost 0.4Mt of LCE already
in compliant Resources Bradda Head now has the largest publicly announced
lithium resource in Arizona and 2023 is expected to be yet another resource
growth year for the Company.

 

"The success of our current programmes at our San Domingo Pegmatite district,
and also at our Lithium in Clay Basin Project, both located in Arizona, USA,
continue to highlight the risk diversification approach followed by Bradda
that we believe separates us from many of our peers in the 'Lithium' space."

 

 

Figure 1: San Domingo overview map.

 

 

 

 

 

 

 

 

 

Figure 2: Soil sampling results

 

Figure 3: Idealised San Domingo cross-section

 

 

Figure 4: Phase 1 - Northern Claim Block - Midnight Owl area

 

 

Figure 5: Phase 2 - Central Claim Block.

 

 

Figure 6: Northern Claim Block - Midnight Owl

 

 

Figure 7: North Claim Block - Midnight Owl cross-section

 

 

Figure 8: Central Claim Block - Jumbo and Lower Jumbo overview

 

 

Figure 9: Jumbo cross-section

 

 

 

Figure 10: Lower Jumbo cross-section

 

 

 

Figure 11: Central Claim Block - North Morningstar historical drill data

 

 

 

Figure 12: North Morningstar cross-section A-B using historical drill data

 

Figure 13: North Morningstar cross-section C-D using historical drill data

 

 

 

Table 1: Next set of San Domingo Phase 1 and 2 drill highlights so far.

 

 Drill Hole    From_m  To_m    Int_m                    Li2O %  Target Area
 SD-DH23-038a  23.77   28.50             4.72           0.67    Central Claims
 with          27.68   28.50             0.82           2.44    Central Claims
 and           30.02   31.09             1.07           0.48    Central Claims
 and           39.01   40.39             1.37           1.49    Central Claims
 and           49.99   52.73             2.74           0.32    Central Claims
 and           57.58   59.83             2.25           1.01    Central Claims
 and           75.22   89.92           14.69            0.15    Central Claims
 with          79.89   81.08             1.19           1.32    Central Claims
 SD-DH23-039   No significant Results                           Northern Claims
 SD-DH23-040   104.15  105.92            1.77           1.10    Northern Claims
 SD-DH23-041   26.21   27.49             1.28           0.55    Northern Claims
 and           46.48   53.00             6.52           1.24    Northern Claims
 and           57.30   60.35             3.05           0.67    Northern Claims
 and           63.86   67.54             3.69           0.42    Northern Claims
 and           104.55  105.67            1.13           0.68    Northern Claims
 SD-DH23-042   65.53   68.28             2.74           2.12    Northern Claims
 and           73.91   75.74             1.83           0.43    Northern Claims
 and           85.65   89.09             3.44           0.09    Northern Claims
 and           102.26  106.07            3.81           0.06    Northern Claims
 and           116.74  121.31            4.57           0.08    Northern Claims
 SD-DH23-043   104.24  106.25            2.01           0.12    Northern Claims
 SD-DH23-045   No significant Results                           Central Claims
 SD-DH23-046   65.99   71.93             5.94           1.22    Central Claims
 with          70.20   70.99             0.79           4.16    Central Claims
 and           76.50   130.03          40.87            0.03    Central Claims

 

* All drill holes commenced at surface

 

 

Background

 

The Phase 1 and 2 7,000m diamond core drilling programme was designed to test
the thesis that San Domingo is similar in structure to other well-known zoned
pegmatites. The hundreds of pegmatites at San Domingo are hosted within a 1.6
Ba package of Proterozoic metamorphosed greenstone altered biotite-schists,
chlorite-schists, amphibolites, and muscovite-schists. These largely
sedimentary host rocks to pegmatites are established as critical to the
development of lithium-bearing bodies worldwide.

 

Out of the 7,000m planned, 7,300m (47 holes completed) were drilled with
positive results demonstrating high-grade intersections, as set out in the
table below (Table 1). This scout drilling programme was completed on 10
March, of which, assays for 46 of the holes have been received.

 

 

Following on from SRK's 3D remote mapping of the Company's whole San Domingo
claims, and Bradda's geological fieldwork, the Company increased its claims by
75% to cover 23km(2) in 2022, thereby strengthening its position in what
Bradda believes has the potential to be a world class lithium district 2 .

 

In 2022 Bradda completed a soil sampling survey covering c.11% or just under
3km(2) of its 23km(2) of pegmatite ground in Arizona, yielding highly
prospective follow-up drill targets and a 3km trend on the area covered by the
soil sampling (see PR dated 21 November2022) with the same elemental
signatures that have been seen at known lithium mineralisation locations
globally.

The programme was expanded to cover and additional 17km(2) with contractors
from Rangefront Geological Services.

 

The soil geochemistry strongly indicates the pegmatite swarms are largely of
the LCT (lithium-caesium-tantalum) mineralisation type, the most significant
for lithium deposits and what is commonly associated with economic occurrences
of lithium and tantalum. LCT-type pegmatites are generally found in the
Western Australian pegmatite district, like Tianqi and Albemarle's
joint-venture Greenbushes lithium mine.

 

Initial results from the programme were released in February 2023 (see PR
dated 06 February 2023) demonstrating the presence of multiple lithium bearing
pegmatites. With the best result BHL has intersected 31.85 meters at 1.60%
Li(2)O in drill hole SD22-024 which includes 3.21 meters at 3.74% Li(2)O.

 

Large spodumene crystals are observed in all 6 holes drilled on the Jumbo
target, with assays for the last hole (SD-DH23-038a) showing multiple
intersections of Li(2)O grades between 1.01% and 2.44% Li(2)O. Previous
results from Jumbo include 9.54m @ 1.85% Li(2)O in SD-DH23-037 and 4.02m @
1.27% Li(2)O in SD-DH23-035 both at shallow depths.

 

Bradda is proactively doing everything commercially possible to sample our
entire pegmatite district to ensure follow-up drill programmes hit more
high-priority targets and to continue to keep intersecting further lithium
bearing pegmatites. Bradda has a 10,000m drill programme planned to start in
the second half of 2023, using data from the wider soil sampling, current
drilling, SRK pegmatite mapping and the upcoming structural mapping programme.

 

Previous surface sampling at named outcropping pegmatites in the San Domingo
claim blocks returned individual sample grade highlights of:

 

·      Midnight Owl: 1.44% Li(2)O

·      Joker: 0.35% Li(2)O

·      White Ridge: 2.49% Li(2)O

·      Lower Jumbo: 1.62% Li(2)O

·      Sunrise: 0.67% Li(2)O

·      North Morning Star: 0.92% Li(2)O

 

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
Canadian National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"). Core samples were split on site and bagged with sample
tracking tags. 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 sample stream and
reviewed by the QP. 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

 

 

For further information, please contact:

 

 Bradda Head Lithium Limited        +44 (0) 1624 639 396
 Charlie FitzRoy, CEO

 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                         braddahead@tavistock.co.uk

 Adam Baynes

 

 

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.

 

As previously announced in press release on 16 January 2022, the Basin East
Project has an Indicated Mineral Resource of 21.2 Mt at an average grade of
891 ppm Li and 3.5% K for a total of 100 kt LCE and an Inferred Mineral
Resource of 73.3 Mt at an average grade of 694 ppm Li and 3.2% K for a total
of 271 kt LCE. In the rest of the Basin Project SRK has estimated an
Exploration Target of between 300 to 1,300 Mt of material grading between 600
to 850 ppm Li which is equivalent to a range of between 1 to 6 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, on the TSX Ventures exchange with a ticker of BHLI, and on the US
OTCQB market with a ticker of BHLIF.

 

Competent Person SRK

The Mineral Resource statement for the Basin Project was authored by Martin
Pittuck, CEng, MIMMM, FGS who works for SRK Consulting (UK) Ltd, an
independent mining consultancy. Mr. Pittuck has over 25 years' experience
undertaking and reviewing Mineral Resource estimates and has worked on lithium
clay estimates for over 5 years. Mr. Pittuck consents to the inclusion of the
resources information in this press release and context in which they appear.
Martin Pittuck is a Qualified Person as defined under NI 43-101.

Reference is made to the report entitled "Independent technical report on the
Basin and Wikieup Lithium clay projects, Arizona, USA" dated October 18, 2022
with an effective date of June 10, 2022  was prepared by Martin Pittuck,
CEng, MIMMM, FGS, and Kirsty Reynolds MSci, PhD, FGS and reviewed by Nick Fox
MSc, ACA, MIMMM. The Report is available for review on SEDAR (www.sedar.com)
and the Company's website www.braddaheadltd.com.

 

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(SiO3)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.

 

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", "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 SEDAR. 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.

 

 1  Core length

 2  See PRs dated 06 February 2023, 21 November 2022, 13 September 2022, 08
August 2022, 18 July 2022, 21 June 2022 and 02 November 2021.

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