REG - Bradda Head Lithium - Updated Mineral Resource Expansion Basin Project

Bradda Head LithiumAnnouncement

01/07/2024 07:00

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RNS Number : 4815U  Bradda Head Lithium Ltd  01 July 2024

1 July, 2024

Bradda Head Lithium Ltd

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

 

 Updated Mineral Resource Expansion, Basin Clay Project

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused
lithium development group, is pleased to announce a new Mineral Resource
Estimate ("MRE") at the Company's 100% owned 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")
by ABH Engineering Inc. ("ABH").

 

The Company is reporting a new MRE consisting of 99kt of of lithium carbonate
equivalent ("LCE") at an average grade of 929 ppm lithium in Measured
classification, 560kt of LCE at 860ppm Li in the Indicated classification; and
2,175kt of LCE at 808ppm Li in the Inferred classification following the
completion of drilling, reception and analysis of geochemical results, and new
modeling of the Basin project. As per the Gross Overriding Royalty Agreement
("Royalty Agreement") with the Lithium Royalty Company ("LRC"), the new
contained LCE Tonnage surpassed the contracted threshold of 2.5Mt and has
enabled the Company to trigger the payment of US$3.0 million from LRC to
Bradda Head. The Company has requested this payment be made, and therefore
expects to be well funded for the future, including our drilling plans at San
Domingo Arizona, our near surface Spodumene bearing pegmatite opportunity.

 

 Highlights:

 

·    The total new Mineral Resource now comprises 20 million tonnes in the
Measured category at 929ppm Li consisting of 99kt LCE, 122 million tonnes in
the Indicated category at 860 ppm Li consisting of 560kt LCE and 506 million
tonnes in the Inferred category at 808 ppm Li, carrying 2,175 kt LCE

 

·    The resource now contains 20 million tonnes of 929ppm lithium for
99Ktons of LCE in the Measured category, the first ever in this category at
Basin

 

·    As per the Royalty Agreement, BHL has formally requested payment of
US $3.0 million from LRC; documentation has been submitted per verification by
ABH Engineering Inc. ("ABH")

 

·    The results of the 2024 drilling programme demonstrate extensive
lateral continuity from Basin East through to Basin North, identifying
impressive consistency in the stratigraphic continuity of the Upper Clay and
grade profile over a 3.0 x 2.0 km area that remains open to the north, east,
and west

 

·    It's important to note that the Upper Clay Unit includes a continuous
High-Grade layer which has an average grade of some 1,190 ppm Li, and is on
average 15m thick and crops-out in Basin East potentially forming part of a
phased mining processing operation that would clearly enhance early stages of
mining and overall project economics

 

·    Five out of the eight drill holes encountered lithium mineralized
"Lower Clay" which makes a significant contribution to the overall resource,
particularly as the Company is able to connect the Lower Clay mineral resource
from Basin East to the northern edge of Basin North, a distance of 3.0km

 

·    The average in-situ grade of the Inferred Basin East Mineral Resource
has decreased slightly from 900 to 822 ppm Li, a 9% decrease

 

·    ABH applied a new cut off grade of 550ppm Li to report the Mineral
Resources and demonstrate reasonable prospects of eventual economic extraction
("RPEEE"). This is the same cut off grade previously used by SRK (550 ppm;
effective 28(th) September 2023)

 

·    ABH were selected to complete the Mineral Resource Update analysis
based upon their prior work in clay deposits across Nevada, having significant
expertise and knowledge. They applied a robust approach to both the in-situ
density measurement and the cut off grade utilised. The in-situ density
measurement was based upon several hundred core sample measurements using best
practices

 

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

 

·    Following the 2024 drill program and new geologic mapping, the
Company's understanding of the Basin project has increased significantly,
resulting in renewed encouragement of extensive exploration opportunities for
growth over the remainder of Basin North and all of Basin West where the
Company continue working on permits

 

·    The complete NI43-101 Technical Report by ABH will be available on
the Company's website and SEDAR by or before August 12, 2024

 

 

Ian Stalker, non-Executive Chair of Bradda Head, commented:

 

"This is a remarkable increase in LCE at Basin North and highlights the
ever-growing potential that we continue to believe is inherent at the Basin
Project. We have delivered on our objective to increase our resource to over
2.5MT, successfully triggering the US$3 million royalty payment from the LRC,
which we have now formally requested be paid. The total drilled area at Basin
East/Basin East Extension/Basin North covers only 4.0km(2) of our 20.8km(2)
license area at Basin. The surface geology and geochemistry across the entire
property strongly suggest further and extensive opportunities to continue
expanding the Resource."

 

"We are committed to continue on our strategy of permitting drill sites at
Basin West and Basin North, where we believe extensive opportunities are
obvious with a view to substantially building on the MRE and further proving
up what an excellent project Basin is."

 

 

 Mineral Resource Estimation

The updated 2024 Mineral Resource Estimate ("MRE") at Basin authored by ABH
Engineering Inc ("ABH"), is reported in accordance with the terminology and
definitions given in the Canadian Institute of Mining, Metallurgy and
Petroleum guidelines, comprising: a Measured Mineral Resource of 20 million
tonnes at an average grade of 929ppm for a total of 99kt of LCE, an Indicated
Mineral Resource of 122 million tonnes at an average grade of 860ppm Li for a
total of 560 kt LCE and an Inferred Mineral Resource of 506 million tonnes at
an average grade of 808 ppm Li for a total of 2,175 kt LCE. The
statement, presented in Table 1, was prepared by Mr. Damir Cukor of ABH, who
is considered a Qualified Person for this style of mineralisation.

 

ABH 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 CIM. To achieve this, the Mineral Resource has been subject to
a pit optimisation study and cut-off grade analysis.

 

2024 Mineral Resource Estimate Statement

 

Table 1:  Mineral Resource Statement for Basin East, Basin East Extension
and Basin North effective 11 June, 2024.

 Classification  Domain         Tonnes  Mean Grade  Contained Metal

                 Mt                     Li (ppm)    LCE (kt)
 Measured        Upper Clay     13      720         48
                 Upper Clay HG  7       1,316       49
                 Lower Clay     1       687         2
                 SubTotal       20      929         99
 Indicated       Upper Clay     90      794         382

                 Upper Clay HG  18      1,302       126
                 Lower Clay     14      712         52
                 SubTotal       122     860         560
 Inferred        Upper Clay     318     740         1,254

                 Upper Clay HG  90      1,154       555
                 Lower Clay     97      709         366
                 SubTotal       506     808         2,175

o  Mineral Resource statement has an effective date of 11(th) June 2024.

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 $17,200 USD/t LCE;
State of Arizona royalty (selling cost) of 6%; operating costs of $35 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

o  Bradda is the Operator at Basin and 100% owner

 

 

High Grade

Over one quarter, or 115 million tonnes of the contained LCE, is in a
High-Grade zone within the Upper Clay zone with an average grade of some
1,190 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.

 

 

Graph 1: Growth of resource, grade average, tonnes of LCE, since 2018

 

The graph above illustrates the growth of the Basin resource since 2018 and
the near exponential growth since 2023 when the total LCE grew significantly
in the inferred and indicated categories, not to mention the new measured
category.. Additional growth is anticipated once additional permits are
obtained for Basin West and expansion of existing permit for Basin North.

 

Exploration Potential

The Upper Clay, Upper Higher-Grade and Lower Clay horizons show remarkable
extent and continuity throughout the drilled parts of the Basin Project and
remain open to the north, west, and east indicating significant exploration
potential in the overall Basin property. 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. Recent surface mapping over Basin West has
identified substantial Upper and Lower Clay horizons, separated by tuff and
basalt layers, providing stratigraphic context. Both tuff and basalt layers
are found above the Upper and Lower Clays, indicating strong optimism in
discovering additional clays in the northwest quadrant of Basin West.  As
such, with further wide-spaced drilling Bradda Head sees excellent potential
to increase the resource base substantially.

 

 

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 2024 to Q4 2023 MRE:

 

2024 model sensitivity of LCE to cut-off grade:

 

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

 

 Li cut-off grade (ppm)  Measured                                                                           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  Tonnage above cut-off  Average grade above cut-off  Contained metal above cut-off
                         Mt                     Li (ppm)                     LCE (kt)                       Mt                     Li (ppm)                     LCE (kt)                       Mt                     Li (ppm)                     LCE (kt)
 450                     21                     916                          101                            127                    847                          573                            546                    785                          2,283
 550                     20                     929                          99                             122                    860                          560                            506                    808                          2,175
 650                     17                     992                          88                             112                    884                          526                            432                    842                          1,938
 750                     11                     1,130                        69                             84                     944                          420                            266                    929                          1,315
 850                     8                      1,248                        56                             44                     1,071                        253                            124                    1,084                        716
 1000                    7                      1,319                        49                             20                     1,282                        136                            80                     1,182                        501

*This table does not constitute a Mineral Resource, as defined by the CIM 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

 

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 (ABH)

The Mineral Resource statement has been authored by Mr. Damir Cukor,
Qualified Person who works for ABH Engineering Inc, an independent mining
consultancy. Mr. Cukor has over 28 years' experience as a professional
geologist (P.G.) and 20 years as a Qualified Person (QP), undertaking and
reviewing Mineral Resource Estimates and has worked on lithium clay estimates
for over 5 years. Mr. Cukor 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 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.

 

Reference is made to the report entitled "Technical Report on the Mineral
Resource and Exploration Target Estimates For the Basin Lithium Project, USA"
(the Report) dated 1 September 2023with an effective date of 9 November,
2023. The Report was prepared by Martin Pittuck, CEng, MIMMM, FGS, and Kirsty
Reynolds MSci, PhD.. 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.

 

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.

 

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 Liberum (Joint Broker)     +44 20 3100 2000
 Kieron Hodgson

 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, Basin North, and Basin West targets) and the Wikieup
Project. The Basin East Project has a Measured Mineral Resource of 20 million
tonnes consisting of 929ppm lithium for 99kt LCE, an Indicated Mineral
Resource of 122 million tonnes at an average grade of 860 ppm lithium for
560 kt LCE and an Inferred Mineral Resource of 506 million tonnes at an
average grade of 808 ppm lithium for a total of 2,175 kt 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.
 Measured Mineral Resource   That part of a Mineral Resource for which mineralization or other natural
                             material of economic interest may be classified as a Measured Mineral Resource
                             by the Qualified Person when the nature, quality, quantity and distribution of
                             data are such that the tonnage and grade or quality of the mineralization can
                             be estimated to within close limits and that variation from the estimate would
                             not significantly affect potential economic viability of the deposit. This
                             category requires a high level of confidence in, and understanding of, the
                             geology and controls of the mineral deposit.

 

 

Forward-Looking Statements

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.

 

Nominated Adviser

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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