Assays Identify Thickest Upper Clay Zone So Far

RNS Number : 3385T

Bradda Head Lithium Ltd

24 November 2021

 

24 November 2021

Bradda Head Lithium Ltd

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

Thickest Upper Clay Zone Identified so far from Bradda Head's Exploration Programme

Bradda Head Lithium Ltd (AIM: BHL), the North America-focused lithium development group, is pleased to announce assay results from the next three holes at its 100%-owned Burro Creek East Project ("BCE") and the remaining portion of the last twinned hole BCE21-02 (RNS 25/08/2021), which emphasise the opportunity for resource growth at this target site.

Highlights:

· Bradda Head has now received assays from the first three new holes from its 10-hole 2021 Burro Creek East (BCE) core drilling programme, with thicker intersections of Upper Clay identified than anticipated, including a high-grade section of 21.1m at 1,506ppm at hole BCE21-06, where the total Upper Clay zone is 98.6m thick.

· The thickest section of the Upper Clay zone previously intersected at BCE is 68.6m. The presence of this significantly thicker zone (98.6m), further south than previously thought, may lead to a larger resource increase in the higher-grade portion of the Upper Clay zone than originally estimated.

· Combining these new drill results with the recent geophysical data (RNS 29/10/2021) will enable our geologists to understand with much greater clarity the structure and depth of the clay across our entire Burro Creek Project and will help with the planning and targeting of future drill programmes.

· The work done to date at Burro Creek indicates that the Upper Clay zone, which is higher grade than the Lower Clay zone, thickens to the west and north-west, towards Bradda's other claims at Burro Creek. This may enable Bradda to focus on the Upper Clay zone and delineate a higher-grade resource than previously thought.

· Assay results from the remaining portion of the twinned hole (BCE21-02) in the Lower Clay zone at Burro Creek East have also been received. Previously unknown, but anticipated, lithium mineralisation was discovered there, which again highlights that there is significant potential for an increase in the lithium mineral resource as a consequence. The Lower Clay zone was not tested previously at this location in 2018. (See map for drill locations https://www.braddaheadltd.com/media/image-library/2021-burro-creek-east-drilling-programme/).

· These results, as well as the grades/intersections reported earlier (See RNS 25/08/2021 and RNS 27/09/2021) for holes BCE 21-01, the upper part of BCE21-02, and BCE21-03, compare favourably with the current JORC compliant resource of 185kt of Lithium Carbonate Equivalent (LCE) in 2018.

· This drilling programme at Burro Creek was completed on 8^th November. All core is now logged and being assayed with ALS. The updated resource is due in Q1 2022 and is expected to be significantly larger than the current one.

Charles FitzRoy, CEO of Bradda Head, commented:

"These positive drilling results are incredibly encouraging and if we continue to intersect similar depths of the Upper Clay then we may be able to target that zone for a higher-grade resource than what we have currently. The results not only provide further confidence to our geological model but, we believe, also add value and the potential to add further resources to our previously-reported numbers of 185kt of LCE.

"The presence of the increased thickness in the Upper Clay zone reinforces our geological interpretation for the Burro Creek lithium deposit and bodes well for the potential at the rest of our Burro Creek claims where we are in the process of permitting for drill programmes in 2022.

"Burro Creek East is a very small portion of our 47km² claims and the results from this programme demonstrate the potential we have. It's also worth noting that our geophysical programme, which will be finished shortly, has reinforced our geological model and will help us to plan future drill programmes. The funds from the royalty with LRC will enable Bradda to develop an early-stage technical study, and drill at all our 47km² of sedimentary claims.

"These are exciting times not only in terms of the overall lithium market space but also as our exploration drill programmes, and on-site field work at all three of our lithium targets, continue, with lots of newsflow planned for 2022."

Further Background

Bradda Head has finished a 10-hole programme at Burro Creek East, consisting of seven new holes and three twinned holes, designed to test the 2018 RC drill programme that was used to estimate the Burro Creek East Inferred Resource in 2018. The three twinned holes also tested the Lower Clay zone where the 2018 drill holes were not drilled deep enough to test the Lower Clay. To date, Bradda Head has received positive results from this programme, and it is anticipated that the results and resource revision will lead to both an increase in resource size and grade, and an increase in confidence classification.

The results so far from our 2021 drill programme at BCE indicate that the Upper Clay zone thickens towards the west and north-west towards our other claims (map link https://www.braddaheadltd.com/media/image-library/2021-burro-creek-east-drilling-programme/). The initial results of our geophysics programme have added further insights to our geological models at our sedimentary assets and has helped demonstrate that the thickness of our Upper Clay zone potentially increases to the west and north-west towards our other claims, which Bradda Head is in the process of permitting for drill programmes in early 2022. Bradda Head is now focussing on expanding our resources at Burro Creek with permitting underway at claims adjacent to Burro Creek East.

Bradda Head is finalising a geophysical programme that will help to plan future drill programmes at the remainder of its 47km² of sedimentary assets in Arizona. This will ensure drill holes are placed strategically to ensure no funds are wasted on unnecessary drilling, and that Bradda Head will maintain as small a footprint as possible whilst drilling. The recent announcement regarding the royalty with LRC (RNS 15/11/2021) will enable Bradda Head to drill at all its 47km² of sedimentary claims and produce an early-stage technical study.

All remaining holes in the 2021 programme at BCE have been completed, and all core has been transported to ALS and is being assayed. The updated resource at BCE is due in Q1 2022.

2021 core programme, new hole Upper Clay zone highlights:

	Total Upper Clay zone grade (ppm)	Total Upper Clay zone thickness (m)	High-grade Interval Li grade (ppm)	High-grade Interval Intersection length (m)
Hole BCE21-04	1,122 ppm Li	22.2m	1,321 ppm Li	14.3m
Hole BCE21-05	938 ppm Li	60.1m	1,076 ppm Li	37.4m
Hole BCE21-06	860 ppm Li	98.6m	1,505 ppm Li	21.1m

2021 core programme, BCE21-02 highlights:

	2021 core programme Li grade (ppm)		2018 RC programme Li grade (ppm)	% Change Li grade	2021 core programme intercept thickness		2018 RC core programme intercept thickness		% Change intercept thickness
High Grade Upper Clay zone in BCE21-02		1,450ppm Li	1,361ppm Li	7%		22.8m	24.4m	(6%)
Lower Clay zone in BCE21-03		807ppm Li	N/A	N/A		11.2m	N/A	N/A

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

Contact:

Bradda Head Lithium Limited	[phone]
Charlie FitzRoy, CEO Denham Eke, Finance Director
Beaumont Cornish (Nomad) James Biddle/Roland Cornish	[phone]
Peterhouse (Joint Broker)	[phone]
Charles Goodfellow Duncan Vasey Lucy Williams
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 Oliver Lamb Adam Baynes	[e-mail]

Qualified Person

The information in this announcement has been reviewed by Jim Guilinger, COO Bradda Head Lithium. Mr. Guilinger is a graduate of the University of Colorado - Boulder with a BA in Geology with more than 40 years' experience in mineral exploration and mining geology and is a qualified person under the AIM Rules. Mr. Guilinger consents to the inclusion of the technical information in this release and context in which they appear. 

Notes to Editors

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 Burro Creek Project (Burro Creek East Project, and the Burro Creek West Project) and the Wikieup Project.

The Burro Creek East Project has an estimated an Inferred Mineral Resource (JORC) of 42.6 Mt of lithium bearing clays at an average grade of 818 ppm of lithium for 185,000 tonnes of lithium carbonate equivalent (LCE). The Burro Creek East Project also has additional exploration potential for extensions to the current model of between 50,000 to 300,000 tonnes of lithium carbonate equivalent.

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 listed on the AIM market of the London Stock Exchange with the ticker of BHL.

 

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