Completion of Phase 2 Drilling at San Domingo

Bradda Head Lithium Ltd

16 January 2024

 

16 January 2024

Bradda Head Lithium Ltd

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

New Lithium Discoveries at Bradda Head's San Domingo Project, Following Completion of Phase 2 Drilling

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused lithium development group, announces final results from core drilling at the San Domingo Central target area ("Central Target Area"), Arizona, completed on 2 December 2023. This is the second of three sets of assays to be released from the Company's 18,950 feet (5,776m) programme, and include very encouraging results across all the target pegmatites (see PR dated 13 November 2023 for results from the San Domingo North target area).

Results from the San Domingo Central Target Area are highlighted by the following intervals:

·    7.28m at 1.27% Li₂O in hole SD-DH23-069 from 27.43m depth at White Ridge

·    5.18m of 0.88% Li₂O in hole SD-DH23-072 at White Ridge

·    5.06m @ 0.49% Li₂O in hole SD-DH23-083 at Joker

·    2.17m @ 0.58% Li₂O with 92ppm Sn at Jumbo

·    26.52m @ 0.27% BeO with 4.44m @ 0.40% BeO and 0.02% Li₂O in hole SD-DH23-075 at White Ridge

·    Jumbo drill hole SD-DH23-037 (see PR dated 27 March 2023) encountered 9.54m @ 1.85% Li₂O from 46.24m, highlighting the high grades and shallow nature of lithium mineralisation in a hole that is 400m away to the southwest of hole SD-DH23-069

  Summary:

·    Shallow lithium mineralised intercepts were encountered at the Central Target Area, with 90% of significant intercepts at <100m depth.

·    The pegmatites at White Ridge host 7.28m of 1.27% Li₂O, starting at 27.43m in hole SD-DH23-069. In a parallel pegmatite, hole SD-DH23-072 intersected 5.18m of 0.88% Li₂O at 23.77m (Figure 1 below).

·    Spodumene observed as the dominant lithium mineral with minor amounts of lepidolite.

·    Coarser spodumene (>20cm, and dominant at San Domingo) has better preservation than finer grained (1-3cm) spodumene, thus, crystal size is important to overall lithium content and simple low-cost recovery methods.

·    Elements such as tin, tantalum (Ta₂O₅) and beryllium (BeO) are found to be highly anomalous in the Central Target Area, including 0.40% BeO with 118 ppm Ta₂O₅ over 4.44m in SD-DH23-075 over 4.44m and within 26.52m at 0.27% BeO

·    Tantalum, tin, beryllium, rubidium, caesium, and niobium were consistently found to be strongly anomalous within, or peripheral to, our best lithium intercepts, providing excellent pathfinders for targeting, interpretation, and guides to this 'Kathleen Valley' LCT-style of lithium deposit.

·    These, and prior near surface drill hole intercepts in the Central Target Area, offer potential opportunity for open-pit development when further drilling proves up mineable resources. The shallow nature of mineralisation is a compelling argument for continued exploration.

·    The final news release, to include results from Morning Star, will follow as soon as data finalisation, compilation, and interpretation is completed.

Figure 1: Cross-section at White Ridge showing holes SD-DH23-069, 072, and 073

Ian Stalker, Executive Chairman, commented:

"These results support our view of a near surface potential spodumene lithium resource in the Central section of our San Domingo (SD) property. The results complement and add to the previous reported results in the same area. We have known spodumene mineralisation at both Midnight Owl in the north of our SD property and have now added additional near surface intercepts in the Central section.

"Our team has been working diligently throughout the year to interpret the data, and the arrival of the results in December was something of a Christmas present to ourselves! We are also confident that they will be a springboard to the next programme. We are encouraged by this second phase of exploration drilling, continue to be excited for the future at SD, and look forward to the next and final set of results from this drilling programme.

"It also needs to be noted that the nature of the mineralisation encountered to date is simple and shallow; no deep drilling as been undertaken, although this will be considered at a later stage of our Company's development. Deeper drilling may indeed reveal less mobilisation of the lithium due to weathering and, as a result, broader zones of mineralisation.

"We continue to ensure, via corporate cost reductions and in the field project work, that we are properly positioned to be ready for the next wave of lithium demand and subsequent commodity price increases."

Table 1: San Domingo Central Targets Drill Hole Summary

Hole Number	From (m)	To (m)	Int (m)	Li2O (%)	Sn (ppm)	Ta2O5 (ppm)	BeO%	Target
SD-DH23-069	15.97	23.26	7.29	0.17	--		0.19	White Ridge
	27.43	34.72	7.28	1.27	91	92	0.17
	27.43	41.91	14.48			146	0.22
SD-DH23-070	7.01	9.60	2.59	0.20
	57.00	59.89	2.90	0.04			0.11
	116.43	118.11	1.68	0.07
SD-DH23-072	23.77	28.96	5.18	0.88	48
SD-DH23-073	41.79	47.30	5.52	0.04		113
SD-DH23-074	26.00	30.63	4.63	0.04
SD-DH23-075	25.76	28.74	2.99	0.04
	23.16	49.68	26.52				0.27
	45.23	49.68	4.44			118	0.40
SD-DH23-076	18.99	22.95	3.95	0.12
	45.42	54.56	9.13	0.08		42
SD-DH23-079	42.37	57.15	14.78	0.03				Jumbo
SD-DH23-081	109.58	111.74	2.17	0.58	92
	124.36	133.50	9.12			105
	136.86	138.07	1.22		252
	142.25	142.65	0.40	0.55
	146.61	148.74	2.13	0.33	68
SD-DH23-083	28.13	33.19	5.06	0.49	49			Joker

*All drill depths are from surface

Figure 2: San Domingo Project, land, phase I and II drill holes, and target areas

This exploration campaign was designed to test for shallow lithium mineralisation on targets proximal to existing roads and access, to maximise our ability to test as many pegmatites as possible from the same or proximal drill platforms, keeping disturbance to a minimum. Some holes were drilled longitudinally and others perpendicular to the surface-exposed pegmatites, with holes designed to test lateral and vertical zoning. Other holes were step-outs from the previous drilling campaign, such as holes at Joker and Jumbo, both taking advantage of existing roads or minimal new roads to lessen impact on the drill permits.

The White Ridge target is a surface expression of parallel, northeast-southwest to north-south trending pegmatites with several historic mines excavated on spodumene mineralisation. Drill hole SD-DH23-069 was drilled longitudinally and intercepted coarse spodumene crystals at a depth of 27.43m, finding 7.28m @ 1.27% Li₂O, with 91ppm Sn, 92 ppm Ta₂O₅, and 0.17% BeO. Drill hole SD-DH23-072 was designed to cross cut the White Ridge mine (See Figure 3, surface sample with 1.45% Li₂O), finding 5.18m of 0.88% Li₂O at a depth of 23.77m and also contains 48ppm Sn.

Drill holes at Joker cross cut a steeply west dipping, and roughly 15-20m wide, pegmatite with surface expression of 0.25km strike length. Overall, the drill holes contain an abundance of fine-grained spodumene although geochemical results were generally low, interpreted as a lithium depletion of the spodumene, possibly due to localised hydrothermal activity. The visible spodumene at Joker reached high volume percentage, between 25% and 50%, but the depletion of lithium due to localised processes produced low grade intercepts such as 5.06m of 0.49% Li₂O, 18.29m of 0.05%, and 10.67m of 0.06% Li₂O. The pegmatite is open at depth and to the south, however, further work at Joker will depend upon targeting less altered zones.

The Jumbo target sits on a hill with limited access and holes were drilled with intentions to extend mineralisation down dip and along strike. Hole SD-DH23-081 was a step-out and down-dip hole looking to extend prior intercepts, such as 9.54m at 1.85% Li₂O in hole SD-DH23-037 (See PR dated 27 March 2023). While thinner, hole SD-DH23-081 encountered 2.17m at 0.58% Li₂O and 0.55% Li₂O over 0.40m at depths of 109.58m and 142.25m, extending mineralisation to the south. Due to limited access to the west and south, where greater potential exists, no holes were drilled in these preferred locations.

The final news release, to include results from Morning Star, will follow as soon as data finalisation, compilation, and interpretation is completed. Morning Star is approximately 1km to the southwest of Jumbo, along the prominent NE-SW corridor of pegmatites seen on the 10.5km long San Domingo district trend.

Figure 3: San Domingo Central drilling, pegmatites, and target areas

For further information, please visit the Company's website: www.braddaheadltd.com.

QAQC

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 Qualified Person. Mr. Wilkins 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 Chief Operating Officer 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	[phone]
Ian Stalker, Executive Chairman Denham Eke, Finance Director
Beaumont Cornish (Nomad)	[phone]
James Biddle / Roland Cornish
Panmure Gordon (Joint Broker)	[phone]
Hugh Rich
Shard Capital (Joint Broker)	[phone]
Damon Heath / Isabella Pierre
Red Cloud (North American Broker)	[phone]
Joe Fars
Tavistock (Financial PR)	+ 44 20 7920 3150
Nick Elwes / Adam Baynes	[e-mail]

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 1.09 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.

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.
Sn	Tin
Ta2O5	Tantalum pentoxide

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.

 

END