Bradda Head Lithium Ltd Announces Sonic Drilling Underway at the Basin Project

Rhea-AI Summary

Bradda Head Lithium Ltd (BHLIF) has commenced its 2023 sonic drilling program at the Basin Project in Arizona, aiming to enhance its existing compliant lithium resources. The program will involve drilling up to 25 holes across the 17km² area, which currently houses a mineral resource of 371kt of Lithium Carbonate Equivalent (LCE). The future exploration could see the resource expand towards the adjacent Basin East Extension and Basin North areas. The company is using environmentally sensitive sonic drilling methods and aims for a resource upgrade in Q3 2023.

Positive

• Commencement of 2023 sonic drilling program at Basin Project.
• Potential increase in compliant lithium resources at Basin Project.
• Planned drilling of up to 25 holes across 17km² area.
• Current resource of 371kt LCE, with expansion potential in adjacent areas.
• Environmental sensitivity due to use of sonic drilling methods.

Negative

• Volatility in stock markets may lead to rescheduling of other work programs.

Sonic Drilling Underway at the 17km² Lithium Basin Project in Arizona to Delineate Further Compliant Resources

BRITISH VIRGIN ISLANDS / ACCESSWIRE / March 16, 2023 / Bradda Head Lithium Ltd (AIM:BHL)(TSX-V:BHLI)(OTCQB:BHLIF), the North America-focused lithium development group, is pleased to announce that the Company has mobilised a sonic drilling rig to commence its 2023 drilling programme at the Basin Project, in Arizona, with the intention of further adding to its existing NI 43-101 Compliant Mineral Resource of Lithium Carbonate Equivalent (LCE) tonnes.

Highlights:

• Following on from the success of the 2022 drilling at Basin East ("BE"), BHL has mobilised a sonic drill rig to the Company's Basin Project to start the 2023 drilling programme at Basin, which has now commenced.
• BHL expects to drill up to 25 holes in the coming months at Basin East Extension ("BEE"), BE and Basin North ("BN") - BEE is adjacent to BE, and BN joins with BEE's northern border (see map in Figure 1).
• The intent at Basin in 2023 is to increase coverage over as much of the Project's 17km² area as possible. To date, c.1.4km² of the area has been drilled, leading to a Mineral Resource of 371kt of LCE.
• Importantly for future resource growth, the Mineral Resource remains open to the west, northwest, and north of the drilled area where BHL has the adjacent BEE claim block and beyond into BN, BHL's Basin West ("BW") and Basin West Extension ("BWE") claim blocks where geological mapping and geophysical surveys predict similar clay strata may be present.
• Results from the Company's previous drilling programme have indicated that the shallower High-Grade and Upper Clay zones thicken to the northwest extent of the drilled area towards Bradda's BEE permits (see map in Figure 1) which could potentially be mined first as part of a phased mining operation. The planned drilling at BEE is expected to further investigate the extent of this higher-grade zone, and could potentially lead to expanding the current Resource, setting the scene for drilling at BW and BWE where BHL is permitting to drill early in 2024. BW and BWE cover an 11km² area, significantly larger than BE, BEE and BN combined.
• During the drilling programme the Company will continue to guarantee that all efforts are focused on ensuring that work is carried out in these areas with as little disturbance as possible. Bradda Head is using sonic drilling, which is more environmentally sensitive as it uses very little water compared to diamond core or reverse circulation drilling.
• BHL continues to progress the metallurgical testing of our lithium-bearing clays at Basin, trialling existing and new technologies which may qualify for funding grants under the Biden administration's recent clean energy initiatives. The Company also continues to monitor progress made by other clay projects and learn from them.

Charles FitzRoy, CEO of Bradda Head, commented:

"We are delighted to have commenced our 2023 drill programme at Basin, which we believe will generate material catalysts for the Company this year. The current Resource remains open to the west, north-west and north of where we have drilled to date, and this first programme of 2023 will enable us to expand our current Resource into more of our 17km² Basin Project in Arizona. The area to be drilled at the Basin East Extension is 2.5km,² which is considerably larger than at Basin East (1.5km²) where we have our current Resource. We anticipate that this first programme will lead to a further resource upgrade in Q3 of this year.

"Drilling at Basin East Extension and Basin North are the next exciting steps in proving up a resource over the total 17km² claim package at Basin, where we have an exploration target of up to 6Mt LCE and a current Resource of 371kt LCE covering an area of only 1.2km²!"

"2023 is going to be a significant year of resource growth for Bradda Head. With further drilling already planned at Basin West and Basin West Extension, BHL is excellently placed to take full advantage of the near-term resource growth potential at our sedimentary lithium assets in Arizona. The area we are permitting at Basin West is over 11km², which is considerably larger than Basin East, Basin East Extension, and Basin North combined (c.6km²)."

"In order for BHL to accelerate programmes at our flagship assets Basin and San Domingo, we are putting our funds (currently c.US$8m at the end of February) where we believe it will give shareholders the greatest return from cash spent in the ground. Cash preservation is a top priority for BHL so whilst stock markets remain unusually volatile, we may consider rescheduling some of our other work programmes (Eureka, Wilson and Wikieup) and will update the timeline to Investors and in our presentation once finalised to reflect this."

Figure 1: Map of Basin East Extension, Basin East and southern portion of Basin North

Next Drilling Steps

BHL's drilling over the last 4 years at BE only covers 1.4km² of our c.46km² of sedimentary lithium claims in Arizona comprising the Basin and Wikieup Projects. The 2023 plan at Basin is to increase exploration drilling coverage over as much of our c.46km² of lithium-bearing sediments as possible and by completing this, BHL anticipates further resource growth in 2023 across this project.

BHL released an updated Mineral Resource Estimate ("MRE") in January this year (see PR dated 16 January 2023), which was the 2^nd MRE that BHL has released in 18 months since quoting on AIM in July 2021.

The Company has obtained drilling permits for 120 holes at BEE, where sonic drilling has commenced. The Company also has permission to drill 10 holes at its BN Claim. The difference in the scale of the programmes is that BEE is a state lease, whereas BN is a Bureau of Land Management ("BLM") series of lode and placer claims (see map for all Basin Project claims/leases at https://www.braddaheadltd.com/media). BEE, BE, and BN are contiguous land positions with BEE's northern border.

Bradda Head is in the process of permitting exploratory drilling at its BW and BWE claims through a Plan of Operations, a procedure with the BLM.

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.

Table 1: Comparison of updated Q4 2022 MRE to Q1 2022 MRE to 2018 MRE:

	LCE (kt)	Resource area (km2)	% of resource area over total 41km2	Drilled area (km2)	% of drilled area over total 41km2
2018 MRE	185	0.58	1.4	0.9	2.2
Q1 2022 MRE	3051	0.94	2.3	1.1	2.7
Q4 2022 MRE	3712	1.24	3.0	1.4	3.4

^[1] National Instrument 43-101 compliant technical report filed for the Basin Project in November 2022

² National Instrument 43-101 compliant technical report filed for the Basin Project in March 2023

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. 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 "Independent Technical Report On The Basin And Wikieup Lithium Clay Projects, Arizona, USA" (the Report) dated October 18 2022 with an effective date of June 10 2022.The Report was prepared by Martin Pittuck, CEng, MIMMM, FGS, and Kirsty Reynolds MSci, PhD, FGS and reviewed by Nick Fox MSc, ACA, MIMMM. Reference is made to the report entitled "Technical Report On The Mineral Resource And Exploration Target Estimates For The Basin Lithium Project, USA" dated February 28 2023 with an effective date of October 13 2022. The Report was prepared by Martin Pittuck, CEng, MIMMM, FGS, Kirsty Reynolds MSci, PhD, FGS and Jamie Price MESci, PhD. The Reports are available for review on SEDAR (www.sedar.com) and the Company's website.

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	+44 (0) 1624 639 396
Charlie FitzRoy, CEO Denham Eke, Finance Director
Beaumont Cornish (Nomad) James Biddle/Roland Cornish	+44 20 7628 3396
Peterhouse (Joint Broker)	+44 207 469 0930
Charles Goodfellow Duncan Vasey Lucy Williams
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 Adam Baynes	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 Project, and the Basin West Project) and the Wikieup Project.

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.

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Bradda Head Lithium Limited

View source version on accesswire.com:
https://www.accesswire.com/744130/Bradda-Head-Lithium-Ltd-Announces-Sonic-Drilling-Underway-at-the-Basin-Project

FAQ

What is the latest news about Bradda Head Lithium Ltd (BHLIF) drilling program?

Bradda Head Lithium Ltd (BHLIF) has initiated its 2023 sonic drilling program at the Basin Project in Arizona to expand its lithium resources.

How many holes will be drilled in the Basin Project by Bradda Head Lithium (BHLIF)?

The company plans to drill up to 25 holes in the Basin Project area.

What is the current lithium resource of Bradda Head Lithium Ltd (BHLIF)?

Bradda Head Lithium Ltd has a current mineral resource of 371kt of Lithium Carbonate Equivalent (LCE).

When does Bradda Head Lithium Ltd (BHLIF) expect to update its resource estimate?

The company anticipates a resource upgrade announcement in Q3 2023.

What drilling method is used by Bradda Head Lithium Ltd (BHLIF) for environmental sensitivity?

Bradda Head Lithium Ltd employs sonic drilling methods, which require significantly less water compared to traditional drilling techniques.