Drilling Completed at Basin Lithium-in-Clay Project & San Domingo Pegmatite Project Update

Rhea-AI Summary

Bradda Head Lithium, focused on lithium development in North America, has completed an eight-hole drilling program at its Basin Project in Arizona. The anticipated resource expansion could increase from 1.08 MT to a minimum of 2.5 MT of lithium carbonate equivalent, potentially triggering a $3 million royalty payment. The company is also advancing its San Domingo Pegmatite Project, with plans to explore new high-profile targets. Initial visual results from Basin drilling appear promising, with further geochemical results pending. Upcoming programs at San Domingo include follow-up drilling and extensive sampling.

Positive

• Completion of an eight-hole drilling program at the Basin Project, potentially expanding resources to over 2.5 MT of lithium carbonate equivalent.
• Potential $3 million royalty payment from Lithium Royalty Company if resource expansion is confirmed.
• Initial promising visual results from Basin drilling, indicating high lithium values.
• Successful completion of Basin drilling program under budget and without environmental or safety incidents.
• Detailed exploration program planned for San Domingo Pegmatite Project, targeting high-grade lithium-bearing pegmatites.

Negative

• Partial results received so far from Basin Project drilling, with full geochemical results still pending.
• Total drilling depth at Basin Project was less than initially planned (2,353 meters vs. 2,682 meters).

BRITISH VIRGIN ISLANDS / ACCESSWIRE / May 22, 2024 / Bradda Head Lithium Ltd (AIM:BHL)(TSX-V:BHLI), the North America-focused lithium development group, is pleased to provide an update on work at 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. A resource expansion from 1.08 million tons (MT) to a minimum of 2.5 MT of lithium carbonate equivalent (LCE) would generate a US$3 million royalty payment to Bradda Head from Lithium Royalty Company (LRC).

To date, partial results have been received, with the remainder still pending and the Company will make further announcements as these are received in full.

The Company has also been working on the next phase of exploration at San Domingo hard rock Pegmatite Project and is excited to present a brief description of the next work program where several high-profile pegmatite targets have received little if any exploration and present excellent opportunities for growth. In addition, follow-up on last year's drilling and this year's channel sampling are planned.

Highlights:

Basin Project

• Average hole depth of 285 meters (934 feet) with a range of 231 to 387 meters (757 to 1,269 feet) in a total of 2,353 meters (7,720 feet) drilled This was less than the 2,682 meters (8,800 feet) initially envisaged as a result of finding shallower clay targets than anticipated
• Further resource increase anticipated following the definition of a window 900 meters wide (east-west) by 1,780 meters in length (north-south), consistent continuous lithium-bearing Upper and Lower Clay units, it has the potential to continue expanding, being wide open in all directions
• Thickest Upper Clay unit at 103 meters in the center of the drill pattern discovered at hole BND24-19
• Two holes were drilled on State Lands and designed to capture lower clay; substantially increasing the lower clay reach from Basin East to the northern end of Basin North, a linear distance of 3.3km
• Program was successfully completed under budget and without any environmental or safety incidents
• Completion of this program has produced promising visual results, Bradda Head's geology team are now able to recognise that the clays contained strong characteristics of high lithium values, and are greatly encouraged by the clays seen in the past eight drill holes
• The Qualified Person (QP) has made a site visit and was provided with all the geological and technical information, and the geologic block model has been revised to reflect the new intervals from drill hole lithologies and peripheral surficial geology

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

Basin Project Permitting Update

A Basin West drilling permit kick-off meeting was also held with the BLM in April and organised to initiate the NEPA (National Environmental Policy Act) process for development of the EA (Environmental Assessment) Report that, once approved, will allow the Company to commence drilling. This process follows the BLM's letter of EPO (Exploration Plan of Operations) completeness which the Company received earlier this year, and marks an important step on expanding our ability to extend exploration over the very promising Basin West target.

San Domingo Pegmatite Project

• A well thought out, and detailed exploration programme is planned for the second half of this year on the Company's San Domingo Project, building on the success of the two previous drilling campaigns. At this moment the plans include a design to offset 2023 drill hole high-grade intercepts at Morning Star, White Ridge, and Midnight Owl, surface sampling (channel, rock, soil) on new targets accompanied by detailed geologic and structural mapping, then access review for drill hole permitting
• A summer program of planned geologic/structural mapping, channel, rock chip, and soil sampling on unexplored soil anomaly/pegmatite targets
• Follow-up drilling to strategically offset last year's high grade drill hole intercepts where feasible
• Exploration of the following greenfield targets: Yellowstone, Thunder, Dragon, Lone Giant, Road Runner, in addition to recently staked lands to the northwest and south where pegmatites and greenstone are present: all targets have excellent upside potential
• Yellowstone is a 900x900 meter undrilled target with multiple lithium-caesium-rubidium anomalies, and where spodumene was identified in the field during cursory reconnaissance
• Dragon is an undrilled pegmatite target with surface grab samples up to 7.99% Li₂O and 10 out of 48 surface samples >0.50% Li₂O

San Domingo Pegmatite Project Update

The Company is diligently working on the next phase of exploration at the 100% owned San Domingo pegmatite project. The team believe that there is excellent potential to find new lithium bearing pegmatites given the extensive size of the nearly 33 square kilometer property and limited amount of ground coverage to date. In addition, to developing new targets, there will be follow-up on last year's drill hole intercepts, as well as this year's excellent channel sampling at Morning Star, White Ridge, and Midnight Owl. The future plan will be to strategically place drill holes to test channel sample mineralization and offset down-hole mineralization in order to grow resource potential at all three targets.

The summer program is expected to include geologic/structural mapping, channel and rock chip sampling, and additional soil sampling to refine targets for potential drilling, specific details of which will follow later. The Yellowstone target, for example, has multiple lithium-caesium-rubidium geochemical anomalies across a 900 by 900 meter target area where spodumene was identified in the field during cursory reconnaissance and this, as well as other targets, require detailed work to elevate them to drill target status. The Company remains very encouraged by the strong soil geochemistry and presence of spodumene. Additionally, the Company has undrilled targets such as Dragon, where surface rock chip samples detected up to 7.99% Li₂O from a mine dump sample with 10 out of 48 rock chip samples containing over 0.50 % Li₂O. The Dragon area will be the focus of channel sampling, taking advantage of excellent road access to several historic and shallow lithium prospects.

Ian Stalker, Executive Chair, commented:

"Now that drilling has concluded and the visual aspects of the clays appear promising, we await the geochemical results that we believe will support the MRE expansion from 1.08 MT to over 2.5 MT of LCE. We are confident that this is an exciting and promising clay project in west central Arizona and are proud to be contributing to lithium expansion in the USA.

"We look forward to providing further updates for all our stakeholders as the results come in from Basin, as well as more details on our forthcoming plans for San Domingo."

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. 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	+44 (0) 1624 639 396
Ian Stalker, Executive Chairman Denham Eke, Finance Director
Beaumont Cornish (Nomad)	+44 (0) 2076 283 396
James Biddle / Roland Cornish
Panmure Gordon (Joint Broker)	+44 (0) 2078 862 500
Hugh Rich
Shard Capital (Joint Broker)	+44 (0) 2071 869 927
Damon Heath / Isabella Pierre
Red Cloud (North American Broker)	+1 416 803 3562
Joe Fars
Tavistock (Financial PR)	+ 44 20 7920 3150
Nick Elwes / Josephine Clerkin	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 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.

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 the original press release on accesswire.com

FAQ

What is the latest update on Bradda Head Lithium's Basin Project?

Bradda Head Lithium has completed an eight-hole drilling program at its Basin Project in Arizona, with expected resource expansion to over 2.5 MT of lithium carbonate equivalent.

How much lithium carbonate equivalent is expected from the Basin Project resource expansion?

The resource expansion at the Basin Project is expected to increase from 1.08 MT to a minimum of 2.5 MT of lithium carbonate equivalent.

Will Bradda Head Lithium receive any financial benefit from the Basin Project resource expansion?

Yes, Bradda Head Lithium could receive a $3 million royalty payment from Lithium Royalty Company if the resource expands to the expected levels.

What are the next steps for Bradda Head Lithium's San Domingo Pegmatite Project?

Bradda Head Lithium plans to conduct follow-up drilling and extensive sampling at the San Domingo Pegmatite Project, targeting high-grade lithium-bearing pegmatites.

What challenges has Bradda Head Lithium faced in its Basin Project drilling?

While the drilling program at the Basin Project was completed under budget, the total drilling depth was less than initially planned, and only partial results have been received so far.