REG - Bradda Head Lithium - Significant Mineral Resource Expansion at Basin

Bradda Head LithiumAnnouncement

28/09/2023 07:00

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RNS Number : 9127N  Bradda Head Lithium Ltd  28 September 2023

28 September 2023

Bradda Head Lithium Ltd

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

 

Further Significant Lithium Mineral Resource Expansion at The Basin
Project in Arizona

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI, OTCQB:BHLIF), the North
America-focused lithium development group, is pleased to announce an updated
Mineral Resource Estimate ("MRE") at the Company's Basin Project, Arizona (see
Table 1 below).  The updated MRE was prepared in accordance with Canadian
National Instrument 43-101 (Standards of Disclosure for Mineral Projects)
("NI-43-101"). As per the Gross Overriding Royalty Agreement ("Royalty
Agreement") with the Lithium Royalty Company ("LRC"), this new contained LCE
Tonnage which is well over the contracted threshold of 1Mt, has enabled the
Company to trigger the payment of US$2.5 million from LRC. The Company has
requested this payment be made.

 

 Highlights:

 

·    Based on a further 2,355.20m of sonic drilling, completed in 2023,
Bradda Head has added 729 kt of Lithium Carbonate Equivalent ("LCE") to the
Inferred Mineral Resource, for an updated total Inferred LCE content of
1.0 Mt. The total new Mineral Resource now comprises 17.0 million tonnes in
the Indicated category at 940 ppm carrying 85kt LCE and 210 million tonnes in
the Inferred category at 900 ppm, carrying 1,000 kt LCE

 

·    As per the Royalty Agreement, BHL has formally requested payment of
US $2.5 million from LRC; documentation has been submitted per verification by
SRK Consulting (UK) Ltd ("SRK").

 

·    The continued step out drilling success at Basin East Extension and
Basin North has increased the Company's confidence levels in achieving the
next milestone of 2.5Mt of LCE in situ, that enables BHL to receive a further
US$3.0 million payment from the Royalty Agreement.

 

·    SRK applied a new cut off grade of 550ppm Li to report Mineral
Resources and demonstrate reasonable prospects of eventual economic extraction
("RPEEE"). This cut off grade is higher than the cut-off grade used to report
the previous Mineral Resource (300 ppm; effective 13(th) October 2022). This
higher cut off grade more accurately reflects the recognised metallurgical
processing input parameters and takes into account operating costs presented
in the public domain by more advanced peer group projects.

 

·    The average in situ grade of the Inferred Basin East Mineral Resource
has increased from 694 to 900 ppm Li, a 30% increase.

 

·    The results of the 2023 drilling programme demonstrate extensive
lateral continuity of the Basin East clay package as well as impressive
consistency in the stratigraphic position and grade profile of a high-grade
clay-rich sub-unit, over an approximately 2.7 x1.8 km area.  It's
important to note that the Upper Clay Unit includes a continuous High-Grade
layer which has an average grade of some 1,300 ppm Li, and is on average 15m
thick. This higher-grade portion of the Upper Clay Unit is strategic as it
could potentially form part of a phased mining processing operation and would
clearly enhance early stages of mining and overall project economics.

 

 

·    Mineralisation is open to the north of the MRE model in the Basin
East and Basin North license blocks, and geological mapping, surface Li
samples. Geological mapping and geophysical surveys indicate that similar clay
strata may also be present across the majority of the Basin West license
block. The previous drilled area only covered 1.4km(2) of Bradda's total
41km(2) of sedimentary claims in Basin and Wikieup. The 2023  resource
expansion drill programme has increased this drilled area to 2.5km(2 )or 14%
of BHL's claims in the Basin district only (see
map https://www.braddaheadltd.com/media/image-library/
(https://www.braddaheadltd.com/media/image-library/) ). The next phase of
drilling is planned for early 2024 at Basin North under an existing notice of
intent ("NOI") permit. Bradda is also permitting an 80-hole programme at BWE
and BW with the BLM (Bureau of Land Management) where it expects significant
resource growth stemming from geological work done to date by our geologists.
BW and BWE cover an 11km(2) area, which is considerably larger than the BE
(1.5km(2)), BEE (2.3km(2)) and BN (2.3km(2)).

 

·    SRK were selected to complete the Mineral Resource Update analysis
and applied a stringent approach to both the in-situ density measurement and
the cut off grade utilised. A lower in situ density and higher cut off grade
than previously reported resulted in a more robust estimate. A significant and
pragmatic building block to develop the on-going test-work plan.

 

·    Table 2 below highlights the 'grade vs. tonnage' relationship with
the orebody and reflects a significant amount of flexibility in potential open
pit mining scenarios

 

·    The full study completed by SRK will be available on the Company's
website and SEDAR before November 10, 2023.

 

 

Ian Stalker, Chairman of Bradda Head, commented:

 

"The increase in LCE at Basin East Extension and into Basin North highlights
the impressive potential that we have always believed is inherent at
the Basin Project. The total drilled area at Basin East/Basin East
Extension/Basin North still only covers 2.5km(2) of our 41km(2) license area
at Basin and Wikieup.

 

"We believe that 2024 is going to be another exciting year of resource growth
for Bradda Head, hopefully in both projects areas - San Domingo Pegmatites and
the Basin Clays. We remain well funded, even more so following the royalty
payment. More drilling  is already planned at Basin North and Basin West
upon receipt of the Environmental Assessment ("EA") from the BLM in H2 2024.
The area we are permitting is over 11km(2), which is considerably larger than
BE, BEE, and BN combined (c.6km(2)). BHL is excellently placed to take full
advantage of the near-term resource growth potential at our sedimentary
lithium assets in Arizona. The BHL team on site has done a remarkable job and
showed persistence in delineating the Basin Project to date.

 

"We have a compelling 12 months ahead with what we believe are a number of
material catalysts and we look forward to providing further updates in 2023,
including our ongoing work at our San Domingo Pegmatite district as well as in
2024 in what we believe is going to be another exciting year of resource
growth for Bradda both at San Domingo and Basin."

 

 

 

Mineral Resource Estimation

The updated 2023 Mineral Resource Estimate ("MRE") at Basin authored by SRK
Consulting (UK) Ltd ("SRK"), is reported in accordance with the terminology
and definitions given in the JORC Code (2012) and the Canadian Institute of
Mining, Metallurgy and Petroleum guidelines, comprises: 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 for a total of 1.0 Mt LCE. The statement,
presented in Table 1, was prepared by Mr. Martin Pittuck of SRK, who is
considered a Qualified Person for this style of mineralisation.

 

SRK has applied basic technical and economic assumptions for open pit mining
(mining and selling costs, mining recovery and dilution, pit slope angles) and
processing factors (Li recovery, processing costs), to determine which portion
of the block model has reasonable prospects for eventual economic extraction
as required by the JORC Code. To achieve this, the Mineral Resource has been
subject to a pit optimisation study and cut-off grade analysis.

 

The 2023 Q3 Mineral Resource follows the completion of a 14 hole 2,355.2m
sonic drilling programme which was completed in Q2 2023. Drilling covers
double the area compared with the previous estimate giving new relatively wide
spaced intersections in Basin East Extension and the southern part of Basin
North.

 

2023 Mineral Resource Statement

 

Table 1:  Mineral Resource Statement for Basin East, Basin East Extension
and Basin North effective 1 September 2023.

 

 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

 

High Grade

Over one third of the contained LCE is in a High-Grade zone within the Upper
Clay zone with an average grade of some 1,300 ppm Li. This High-Grade zone
gives Bradda Head further optionality and could have important economic
implications for a potential future mining operation. The shallow nature of
the High-Grade zone, which crops out in Basin East, would likely result in a
low strip ratio, enabling High-Grade ore to be scheduled early in a possible
mine plan as it sits in the upper part of the deposit.

 

Exploration Potential

The Upper Clay zone and Higher-Grade zone show remarkable extent and
continuity throughout the drilled parts of the Basin Project and remain open
to the north, indicating significant exploration potential in the Basin North
license. Geological mapping, surface samples assayed for lithium, and
geophysical (Ground Penetrating Radar) survey work also indicate similar clay
layers are likely present throughout the majority of the Basin West license
area. As such, with further wide-spaced drilling Bradda Head sees excellent
potential to increase the resource base substantially with the goal of
reaching and exceeding 2.5MT LCE.

 

For the prospective parts of Basin East, Basin West, Basin West Extension and
Basin North claims, SRK has determined a JORC compliant Exploration Target of
250 to 830 Mt of additional material grading between 750 to 900 ppm Li.
This is equivalent to a range of between 1 to 4 Mt contained LCE. This
Exploration Target is based on an assessment of the updated Mineral Resource
LCE per unit area, an estimated range of likely grades based on the MRE and an
assessment of the extent of mapped clay and hangingwall lithologies, together
with surface sample Li grades, in the undrilled parts of the Basin
Project licence areas. See map (https://www.braddaheadltd.com/media
(https://www.braddaheadltd.com/media) ).

 

 

Related Tables

The following table is for information and context, comparing Q4 2022, Q1 2022
and 2018 totals in relation to the areas on which work had been conducted at
each time.

 

Comparison of updated 2023 to Q4 2022 MRE to Q1 2022 MRE to 2018 MRE:

 

2023 model sensitivity of LCE to cut-off grade:

 

Table 2: Grade-Tonnage sensitivity* to cut-off grade

 Li cut-off grade (ppm)  Indicated                                                                          Inferred
                         Tonnage above cut-off  Average grade above cut-off  Contained metal above cut-off  Tonnage above cut-off  Average grade above cut-off  Contained metal above cut-off
                         Mt                     Li (ppm)                     LCE (kt)                       Mt                     Li (ppm)                     LCE (kt)
 650                     15                     990                          77                             190                    910                          940
 750                     11                     1100                         61                             140                    990                          750
 850                     8                      1220                         49                             80                     1120                         500
 1000                    6                      1290                         42                             50                     1270                         340
 *This table does not constitute a Mineral Resource, as defined by the JORC
 Code, but is an expression of the sensitivity of the average grade and
 contained tonnage of LCE to a selection of different Li cut-off grades

 

Other Comments

Remarkably, the resource was developed in 4 separate programs over the span of
5 years, drilling 62 holes for a total of 6,730 meters, extremely high value
for share holders, resulting in over 1.0MT of LCE.

 

For further information please visit the Company's
website: www.braddaheadltd.com (http://www.braddaheadltd.com/)

 

This announcement contains inside information for the purposes of Article 7 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, this inside information is now
considered to be in the public domain.

 

Qualified Person SRK

The Mineral Resource statement has been authored by Mr. 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 technical
information in this release and context in which it appears.

 

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.

 

Reference is made to the report entitled "Independent Technical Report On The
Basin And Wikieup Lithium Clay Projects, Arizona, USA" (the Report)
dated October 18 2022 with an effective date of June 10 2022. The Report
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 SEDARplus (https://www.sedarplus.ca) and the Company's website
www.braddaheadltd.com (http://www.braddaheadltd.com) .

 

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 (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 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

 

 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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