Basin East Extension Permit Received

RNS Number : 1869Y

Bradda Head Lithium Ltd

05 September 2022

 

05 September 2022

Bradda Head Lithium Ltd

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

 Basin East Extension Permit Received and Drilling to Commence in September

Bradda Head Lithium Ltd (AIM:BHL, OTCQB:BHLIF), the North America-focused lithium development group, announces that it has received permission to drill at Basin East Extension ("BEE") in Arizona, which is adjacent to Basin East (BE) where Bradda has a of 305kt Lithium Carbonate Equivalent (LCE) JORC Resource.

Highlights :

· Bradda Head has received permission to drill 120-holes at the Company's BEE State Lease. Drilling of the first phase (20 holes) is expected to commence in September.

· Sonic drilling, will be used, which has performed very well at the Company's clay assets this year, and also importantly uses far less water than traditional core drilling, whilst offering superior core recoveries for softer deposits like clay, enabling more accurate lithological domaining and assaying.

· Drilling will commence first at BEE with 20 holes. The Company will then conduct analysis on the results to optimise the follow-up programmes, before commencing drilling 10 holes at Basin North (BN) where permits have already been received (see PR dated 05 May 2022).

· Previous drilling at the neighbouring BE claims (where Bradda has a 305kt LCE JORC Resource) indicated that the Upper Clay Zone which includes a higher-grade seam, thickened at the northwest portion of BE, towards BEE (see RNS dated 26^th January 2022) and Basin North (BN).

· Drilling results from BEE are expected to feed into a revised resource estimate at the Basin Project ("Basin") expected towards the end of 2022/early 2023.  This will also form part of the resource for our Preliminary Economic Assessment (PEA), due to start in 2023.

· Bradda is targeting to grow its resources at its Basin project this year with the upcoming drill programmes at BEE and BN. Bradda has two royalty payments due from expanding its resources at its clay claims (see PR dated 22 December 2021). The next payment of US$2.5m is paid on Bradda expanding its resource base to 1Mt LCE (Lithium Carbonate Equivalent), and then the third payment of US$3m is achieved when Bradda expands its resource base to 2.5Mt LCE. Bradda is working with its geologists to hit these targets as soon as is feasible with the programmes mentioned above and the planned programmes in 2023 at Basin West and Basin West Extension.

· See PR dated 29^th March 2022 for more information on the updated Mineral Resource estimate ("MRE") at BE, and map at https://www.braddaheadltd.com/media/image-library/ for more information on Basin in Arizona.

Charles FitzRoy, CEO of Bradda Head, commented:  

"The award of the BEE drilling permit is yet another great piece of news for Bradda Head. Our decision to drill at BEE is based on a continuation of the exploration at Basin where we are aggressively targeting resource expansion, which will feed into a PEA we plan to commence in 2023. We have two significant resource expansion milestones at Basin, the first one being expanding our resource base to 1Mt LCE which will result in the second royalty payment of US$2.5m from LRC  and the second being hitting 2.5Mt LCE which we expect to achieve once we get going at Basin West and Basin West  Extension in 2023. All of this is underpinned by our exploration target, identified by SRK earlier this year, at Basin of up to 6Mt LCE.  

"We are also busy with permit applications for other parts of the Basin Project, and will look to revise our resource estimate as soon is feasible. What is important to note is that we have commenced Phase 2 of our metallurgical testwork at Basin (see PR dated 7 June 2022) and expect to release early results from it later this year. This is even more exciting following last week's announcement that we have managed to use standard commercial equipment (Cyclone Classification) to pre-concentrate our clay as part of a follow-up programme from Phase 1 of our metallurgical testwork programme.

"Crucially, Bradda Head is fully-funded to complete the pipeline of planned exploration drilling, and we are confident that this current BEE programme will provide strong results to enable us to continue with our plans at Basin. Alongside of Basin we are also drilling at our San Domingo pegmatite district in Arizona, with results expected to follow very shortly."

Details

Bradda Head is actively engaged in detailed exploration and evaluation of potential lithium deposits in western Arizona.  Bradda is dedicated to high standards for its evaluation programs, and this includes early recognition and protection of other natural resources that may be effected during evaluation.  Bardda routinely conducts detailed cultural resource and biologic surveys for both flora and fauna to be able to design its evaluation programmes to minimize effects to other resources.  This level of environmental stewardship not only serves to protect other resources but also helps to streamline permitting processes and ensure efficient and uncurtailed on-the-ground operations.

Bradda Head has been awarded permission by the state of Arizona to drill a total of 120 holes at its BEE sedimentary claims in Central Arizona. Drilling of the first phase (20 holes) is expected to commence in September.

Due to the resource growth potential seen at Bradda's Basin Project, a 44-hole drilling programme covering parts of its BE, BEE and BN claims has also been planned for the remainder of 2022. This is expected to feed into a revised resource estimate towards the end of 2022/ early 2023.

An Exploration Target for the entire Basin Project of between 300 to 1,300 Mt of material grading between 600 to 850 ppm Li, equivalent to between 1 and 6 Mt LCE, has been identified by SRK covering the claims BN, BE, BEE and BW and BWE. This is based on an assessment of the updated Mineral Resource LCE per unit area, an estimated range of likely grades based on the MRE and an assessment of the extent of mapped clay and hanging-wall lithologies in the undrilled parts of the Basin Project licence areas (see map: https://www.braddaheadltd.com/media/image-library/ ).

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

This announcement contains inside information for the purposes of Article 7 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, this inside information is now considered to be in the public domain.

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 Adam Baynes	[e-mail]

Qualified Person BHL

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 Basin Project (Basin East Project, and the Basin West Project) and the Wikieup Project.

The Basin East Project has an Indicated Mineral Resource of 17.6Mt at an average grade of 912ppm Li and 3.4%K for a total of 86kt LCE and an Inferred Mineral Resource of 57.6Mt at an average grade of 717ppm Li and 3.3%K for a total of 220kt LCE. In the rest of the Basin Project SRK has estimated an Exploration Target of between 300 and 1,300Mt of material grading between 600 and 850ppm Li which is equivalent to a range of between 1 and 6Mt 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 US OTCQB market with a ticker of BHLIF.

 

END

 

 

DRLVZLBBLKLXBBB