Drilling Results for Basin Lithium-in-Clay Project

Bradda Head Lithium Ltd

14 June 2024

 

14 June 2024

Bradda Head Lithium Ltd

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

Drilling Results for Basin Lithium-in-Clay Project, Lithium Discovered in All Holes

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused lithium development group, is pleased to provide drill hole geochemical results for its Basin Project in Arizona. The lithium-in-clay, resource-expansion drilling programme has concluded with the completion of eight drill holes on the Basin North target portion of the Basin project and all assays have been received. A resource expansion exceeding 2.5 MT of lithium carbonate equivalent (LCE) would generate a US$3 million royalty payment to Bradda Head from Lithium Royalty Company (LRC).

Basin North Drill Programme  Highlights:

·    Upper Clay unit thickness at 103m in the center of the drill pattern discovered in hole BND24-19, encountering nearly 100m (99.82m) at 839 ppm Li with a higher-grade interval of 32.52m at 1,030 ppm Li

·    Five out of the eight holes contain abundant lithium in the Lower Clay, significant as we are now able to connect the Lower Clay in Basin North with holes drilled at Basin East, 2km to the south

·    Drill hole BND24-22 encountered 24.05m at 845 ppm Li in the lower clay, ending in 822 ppm Li due to hole collapsing

·    Additional surface geological mapping and surface sampling further predict the expansion of clays (Upper and Lower) towards the west onto Basin West, to the East onto a State of Arizona Mineral Exploration Permit (MEP), and well to the north where clays have been discovered 1.8km north of hole BND24-20

·    New surface sampling detects up to 1,241 ppm Li in clays 1.8km to the north of hole BND24-20, interpreted to represent the Upper Clay

·    Program completed without environmental or safety incidents

·    MRE anticipated to be complete within the next few weeks, following which the resource will be announced

Results from all eight drill holes contain excellent lithium mineralization, with extensive amounts newly discovered in the Lower Clay. The highlight of this year's drilling is 99.82m containing 841 ppm Li with a higher-grade interval of 32.52m containing 1,030 ppm Li in drill hole BND24-19. Hole BND24-19 contains the thickest Upper Clay thickness of 103m. Drill hole BND24-23 has strong lithium mineralization in both the Upper Clay and Lower Clay, highlighted by 69.80m of 976 ppm Li in the Upper Clay with 11.74m at 1,583 ppm Li in the High-Grade zone within the Upper Clay and 11.43m of 864 ppm in the Lower Clay. See Table 1 for a full summary of drilling results and Figure 1 for drill hole locations.

All of the geochemical data, including a refined Leapfrog geologic 3-D model, are presently with the Qualified Person, who is generating the 2024 MRE (Mineral Resource Estimate). We anticipate the MRE will be completed within the next few weeks, following which the resource will be announced.

Rock chip samples were also collected in Basin North around the north margin of the sedimentary basin, detecting up to 1,241 ppm Li on the surface, proving the exceptional expansion opportunities towards the north, along with what the Company knows about the extensive potential at Basin West (See Figure 1).

Ian Stalker, Executive Chair, commented:

"This is a particularly exciting juncture in the Company's trajectory, as we await the updated resource which could unlock a significant royalty payment from the LRC. Now, with all the results received and the notable expansion into the Lower Clay, we await calculation by our QP on the MRE expansion, which we anticipate proving significant growth from 1.08 MT of LCE. Since last year's sonic drilling and expansion from 371KT to 1.08MT of LCE, we have remained steadfast in our prediction that we will achieve what is an important increase. We tripled the resource last year and are optimistic we may achieve something similar with the conclusion of this 2024 program. We look forward to providing an update on the Basin MRE for all our stakeholders in short order."

Figure 1. Basin drill hole distribution, land, surface geochemistry, 2023 resource boundaries (inferred and indicated).

Table 1 Below, 2024 Drill Hole Intercepts

Drill Hole	From_m	To_m	Interval_m	Li in ppm	Clay Sequence	Comments
BND24-15	164.44	254.20	88.44	811	Upper Clay	1.52m of cave material, not included
Inc.	221.89	234.70	12.81	1,250	Upper Clay_High Grade
	282.82	311.54	*27.75	737	Lower Clay	* 0.97m Interval lost at 307.18 due to re-drill
Inc.	296.91	311.54	*12.29	1,024	Lower Clay_High Grade	* 0.97m Interval lost at 307.18 due to re-drill
BND24-16	76.5	156.67	80.17	694	Upper Clay
	120.52	130	9.48	938	Upper Clay
BND24-17						*Hole Lost at 76.2m
BND24-18	153.19	216.10	62.91	711	Upper Clay
	188.61	196.90	8.29	1,024	Upper Clay
BND24-19	213.21	313.03	99.82	841	Upper Clay
Inc.	251.46	283.98	32.52	1,030	Upper Clay_High Grade
	347.32	362.41	15.09	635	Lower Clay
BND24-20	198.39	275.2	76.81	749	Upper Clay
	244.24	257.83	13.59	946	Upper Clay
BND24-21	80.41	163.98	83.57	871	Upper Clay
Inc.	107.05	127.19	20.14	1,114	Upper Clay_High Grade
	173.31	213.57	40.26	695	Lower Clay
	206.36	211.53	4.88	1,123	Lower Clay_High Grade
BND24-22	217.81	241.86	24.05	845	Lower Clay	Upper Clay not analyzed, twin of BES23-11
BND24-23	98.82	168.25	69.80	976	Upper Clay
Inc.	136.43	148.07	11.74	1,584	Upper Clay_High Grade
	197.51	208.94	11.43	864	Lower Clay_High Grade

*Drill hole BND24-17 was lost at a depth of 76.2 meters. A new site was permitted 100m to the south as a replacement and drilled hole BND24-20. All holes were drilled vertical.

QAQC

Core samples were cut and sampled at the core shed under the supervision of Joey Wilkins, the Company's COO. The drill core was cut in half and one-half bagged, labelled, and tied-off. Samples were placed in a secure container until the hole was complete then shipped direct to SGS Laboratories in Burnaby, B.C., Canada where they prepped then analysed all samples using 4-acid digest with ICP-AES. Certified standards were inserted into the sample stream to ensure quality control at the laboratory. All standards passed QAQC metrics of less than 2 standard deviations and validate the geochemical data used in this PR. 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 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.

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.

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

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 / Josephine Clerkin	[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 and 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.

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.

 

END