Receipt of US$2.5m Royalty Payment

Bradda Head Lithium Ltd

24 October 2023

 

​​​24 October 2023

Bradda Head Lithium Ltd

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

Receipt of US$2.5 Million Royalty Payment and Next Basin Drilling Programme Design Underway to Target a Further US$3 Million Royalty Payment

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI, OTCQB:BHLIF), the North America-focused lithium development group, is pleased to announce receipt of the US$2.5 million payment from the Lithium Royalty Corporation ("LRC") upon confirmation of the Mineral Resource Estimate ("MRE") surpassing 1.0Mt Lithium Carbonate Equivalent ("LCE") at the Company's Basin Project, Arizona (September 28, 2023 PR). BHL has initiated a new drill plan for Basin with a particular focus on placing sites to reduce surface impact and meet the Company's objective of defining an inferred total MRE of +2.5Mt LCE. The Company has also expanded the claim block to the north by adding an additional 2.84km² of claims over open ground which has exceptional exploration potential.

 Overview:                             

·    BHL received payment of US$2.5 million from LRC following expansion of the Basin resource by drilling 2,355m and 14 sonic holes tripling the resource from 0.371Mt to 1.085Mt LCE.

·    The next plan and strategy for continued MRE expansion at Basin North is underway with an emphasis on drilling holes at approximately 800m spacings. The anticipated programme is for approximately 10 holes or +/- 3,000m of drilling. The programme is pending Notice of Intent permit expansion with the Bureau of Land Management ("BLM").

·    The Company has also expanded its land package, adding 2.84km² of mining claims to the north of the Basin North claims, where land was open for staking, increasing the Basin land package to 19.7km².

·    Our Exploration team in Arizona had identified the same stratigraphy of clays plus silica nodules along the northern boundary of the new claims as seen to the southwest in Basin West, a distance of over 4.0km.

·    The Company has confidence in achieving the next milestone of 2.5Mt of LCE in situ, enabling BHL to receive a further US$3.0 million payment from LRC under the Royalty Agreement.

·    SRK Consulting (UK) Ltd indicated that the Basin project has potential to grow another 1.0 to 4.0Mt LCE but notes that this is prior to the new license area added at Basin.

​Ian Stalker, Executive Chair, commented:

"The receipt of our first royalty payment is a significant event, substantiating the Company's confidence in its resource size and demonstrating the value of the Basin project, in particular. Following this, we are confident in proving up more than 2.5Mt of resource and triggering the final royalty payment of US$3 million from LRC.

"In addition to resource expansion, we are also expanding our claims, with indications that similarly positive geology extends to the north, into the new claims. These new claims will also feed into the high-grade potential of future resource expansion and will enable us to reach the 2.5Mt threshold for the next royalty payment more quickly.

"Diamond core drilling continues at the San Domingo Pegmatite project with approximately 50% of the program completed, where many of the holes have encountered long intervals of pegmatite with visible spodumene mineralization. Assay results have been slow to arrive due to the summer rush at the laboratory, but drilling progress is good. Additional permits were received from the State and BLM, sites are being constructed at the historic Morning Star lithium mine and we understand drilling there is planned to commence within the next week. The Company hopes to have news on San Domingo within the next few weeks as preliminary results have started to arrive."

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 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) James Biddle/Roland Cornish	[phone]
Panmure Gordon (Joint Broker)	[phone]
John Prior / Hugh Rich
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.

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 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 based on 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.

 

END