Drill Rig Mobilised to San Domingo

Bradda Head Lithium Ltd

10 August 2023

 

10 August 2023

Bradda Head Lithium Ltd.

Drill Rig Mobilised to San Domingo Pegmatite District, Arizona

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 drill rig mobilisation for its Phase 3 drill programme at the San Domingo pegmatite district, Arizona. This represents the second large-scale drill programme conducted in less than one year at San Domingo, underscoring the Company's commitment to exploring and unlocking the potential of our 23km² land package within this highly prospective pegmatite district.

Summary:

·    Bradda Head was granted an exploration permit to drill at its Northern claim block in the San Domingo Pegmatite district. A rig has been mobilised and the Company expects to commence drilling this month. See Figure 1 for overview of priority target areas.

·    The Phase 3 drill programme has been rigorously designed, benefiting from a comprehensive array of data and analyses. Bradda's team of geologists conducted an extensive soil geochemistry survey, undertook a thorough structural mapping programme, reviewed previous GPR geophysical data, and carried out additional ground truthing to optimize the locations and potential effectiveness of this exploration campaign.

·    This has resulted in the identification of several new high priority targets which the Company is excited about and anticipates making new discoveries and extending known lithium mineralization from the previous programme.

·    The first two phases of drilling completed in March 2023 yielded promising results, with the best intercept reported as 31.85m at 1.6% Li₂O at the Midnight Owl prospect in the Northern claim block. Phase 3 drilling will aim to extend this known lithium mineralization.

·    San Domingo's strategic location in Arizona places it at the heart of the burgeoning battery supply chain in the Western US. Bradda's 23km² pegmatite district is steeped in a history of lithium mining, with spodumene ore previously mined in the 1940s and 1950s on a small scale from surface at various historic lithium mines within Bradda's claim boundaries.

·    The Company is eager to advance its exploration efforts and work towards delineating the first shallow and potentially open pitable lithium resource at San Domingo.

·    Bradda Head will continue to provide regular updates on the Company's progress at San Domingo, and extends our gratitude to all stakeholders for their support as Bradda work towards unlocking the full potential of this remarkable pegmatite district.

Charles FitzRoy, CEO of Bradda Head Lithium, commented:

"We are thrilled to initiate the Phase 3 drilling programme at San Domingo, building on the successes of our previous phases and leveraging the valuable insights gained from our geologists' groundwork. The aim of this programme is to delineate the first resource at San Domingo, and we are confident in the project's potential to contribute significantly to the developing battery supply chain in the Western US.

"San Domingo's rich history of lithium mining, combined with the positive results from the first two drilling phases, has only increased our enthusiasm and confidence in the project's potential. We remain committed to conducting responsible exploration and maximizing the value of this valuable asset. We have only just scratched the surface of what we have at San Domingo with just over 1% of the area drilled from this first programme. We look forward to sharing further developments of this exciting project.

"The groundwork conducted by our geologists and the comprehensive data analysis have been crucial in designing this Phase 3 drill programme. Our team's efforts are aimed at unlocking the full potential of San Domingo, and we are excited about the possibilities this exploration campaign holds for Bradda Head and its stakeholders.

"As well as progressing its pegmatite projects, Bradda Head recently announced further positive assay results from its lithium in clay Basin project in Arizona. With almost 0.4Mt of LCE already in compliant resources Bradda Head has the largest publicly announced lithium resource in Arizona and the Company expects that resource number to grow significantly this year."

Figure 1: San Domingo overview showing priority target areas for Phase 3 drill programme

Background

San Domingo's strategic location in Arizona places it at the heart of the burgeoning battery supply chain in the Western US. As the demand for lithium and other battery-related minerals continues to soar, Bradda Head aims to play a pivotal role in meeting the region's requirements while adhering to the highest standards of environmental stewardship.

San Domingo is steeped in a history of lithium mining, with spodumene ore previously mined in the 1940s and 1950s on a small scale from surface at various historic lithium mines within Bradda's claim boundaries. Building on the successful outcomes of the first two phases of drilling, which concluded in March this year and yielded significant lithium mineralisation in approximately 60% of the holes drilled. The Company are eager to advance its exploration efforts and work towards delineating the first shallow and open pit lithium resource at San Domingo.

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) was drilled with positive results demonstrating high-grade intersections. This scout drilling programme was completed on 10 March, of which, assays for 47 of the holes have been received.

The Company increased its claims by 75% to cover 23km² in 2022, following on from SRK's 3D remote mapping of the Company's whole San Domingo claims, and Bradda's geological fieldwork, thereby strengthening its position in what Bradda believes has the potential to be a world class lithium district[1] with the potential to deliver a Tier 1 asset.

In 2022 Bradda completed a soil sampling survey covering c.11% or just under 3km² of its 23km² 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 17km² in early 2023, culminating in a total of 3,885 samples. Samples were collected on 100m spaced lines with sample spacing at 50m, North-South lines.

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. The soil geochemical dataset was thoroughly examined by a geochemist, the result of which point to localization of Li bearing pegmatites along a phosphorous-magnesium geochemical and possible metamorphic boundary. Many of our Li-bearing pegmatites are found along this metamorphic front.

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% Li₂O in drill hole SD22-024 which includes 3.21 meters at 3.74% Li₂O on the Midnight Owl target.

Spodumene crystals are observed in all six holes drilled on the Jumbo target, with assays for the last hole (SD-DH23-038a) showing multiple intersections of Li₂O grades between 1.01% and 2.44% Li₂O. Previous results from Jumbo include 9.54m @ 1.85% Li₂O in SD-DH23-037 and 4.02m @ 1.27% Li₂O in SD-DH23-035 both at shallow depths.

Bradda continues to expand its knowledge of the property through both innovative and traditional exploration techniques whilst intelligently and proactively doing everything commercially possible to sample the Company's entire pegmatite district to ensure follow-up drill programmes hit more high-priority targets and to continue to keep intersecting further lithium bearing pegmatites.

The Phase 3 drill programme has been rigorously designed, benefiting from a comprehensive array of data and analyses. Bradda's team of geologists conducted an extensive soil geochemistry survey, undertook a thorough structural mapping programme, reviewed previous GPR geophysical data, and carried out additional ground truthing to optimize the locations and potential effectiveness of this exploration campaign.

This has resulted in the identification of several new high priority targets which the Company is excited about in order to make new discoveries or extend known lithium mineralization from the previous programme. A NOI (Notice of Intent) exploration drilling permit was granted by the BLM giving us permission to commence operations in the northern part of the claim block, see Figure 1 for overview of priority target areas.

Bradda Head will continue to provide regular updates on the progress of the Company's exploration efforts at San Domingo, and extend our gratitude to all stakeholders for their support as Bradda work towards unlocking the full potential of this remarkable pegmatite district.

For further information please visit the Company's website: 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	[phone]
Charlie FitzRoy, CEO Denham Eke, Finance Director
Beaumont Cornish (Nomad) James Biddle/Roland Cornish	[phone]
Panmure Gordon (Joint Broker) John Prior Hugh Rich	[phone]
Shard Capital (Joint Broker)	[phone]
Damon Heath Isabella Pierre
Red Cloud (North American Broker)	[phone]
Joe Fars
Tavistock (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.

As previously announced in a 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

Li2O	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.

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[1] See PRs dated 09 May 2023, 27 March 2023, 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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