TIDMBHL
RNS Number : 9127N
Bradda Head Lithium Ltd
28 September 2023
28 September 2023
Bradda Head Lithium Ltd
("Bradda Head", "Bradda", "BHL" or the "Company")
Further Significant Lithium Mineral Resource Expansion at The
Basin Project in Arizona
Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI, OTCQB:BHLIF), the
North America-focused lithium development group, is pleased to
announce an updated Mineral Resource Estimate ("MRE") at the
Company's Basin Project, Arizona (see Table 1 below). The updated
MRE was prepared in accordance with Canadian National Instrument
43-101 (Standards of Disclosure for Mineral Projects)
("NI-43-101"). As per the Gross Overriding Royalty Agreement
("Royalty Agreement") with the Lithium Royalty Company ("LRC"),
this new contained LCE Tonnage which is well over the contracted
threshold of 1Mt, has enabled the Company to trigger the payment of
US$2.5 million from LRC. The Company has requested this payment be
made.
Highlights :
-- Based on a further 2,355.20m of sonic drilling, completed in
2023, Bradda Head has added 729 kt of Lithium Carbonate Equivalent
("LCE") to the Inferred Mineral Resource, for an updated total
Inferred LCE content of 1.0 Mt. The total new Mineral Resource now
comprises 17.0 million tonnes in the Indicated category at 940 ppm
carrying 85kt LCE and 210 million tonnes in the Inferred category
at 900 ppm, carrying 1,000 kt LCE
-- As per the Royalty Agreement, BHL has formally requested payment of US $2.5 million from LRC; documentation has been submitted per verification by SRK Consulting (UK) Ltd ("SRK").
-- Th e continued step out drilling success at Basin East
Extension and Basin North has increased the Company's confidence
levels in achieving the next milestone of 2.5Mt of LCE in situ,
that enables BHL to receive a further US$3.0 million payment from
the Royalty Agreement.
-- SRK applied a new cut off grade of 550ppm Li to report
Mineral Resources and demonstrate reasonable prospects of eventual
economic extraction ("RPEEE"). This cut off grade is higher than
the cut-off grade used to report the previous Mineral Resource (300
ppm; effective 13(th) October 2022). This higher cut off grade more
accurately reflects the recognised metallurgical processing input
parameters and takes into account operating costs presented in the
public domain by more advanced peer group projects.
-- The average in situ grade of the Inferred Basin East Mineral
Resource has increased from 694 to 900 ppm Li, a 30% increase.
-- The results of the 2023 drilling programme demonstrate
extensive lateral continuity of the Basin East clay package as well
as impressive consistency in the stratigraphic position and grade
profile of a high-grade clay-rich sub-unit, over an approximately
2.7 x1.8 km area. It's important to note that the Upper Clay Unit
includes a continuous High-Grade layer which has an average grade
of some 1,300 ppm Li, and is on average 15m thick. This
higher-grade portion of the Upper Clay Unit is strategic as it
could potentially form part of a phased mining processing operation
and would clearly enhance early stages of mining and overall
project economics.
-- Mineralisation is open to the north of the MRE model in the
Basin East and Basin North license blocks, and geological mapping,
surface Li samples. Geological mapping and geophysical surveys
indicate that similar clay strata may also be present across the
majority of the Basin West license block. The previous drilled area
only covered 1.4km(2) of Bradda's total 41km(2) of sedimentary
claims in Basin and Wikieup. The 2023 resource expansion drill
programme has increased this drilled area to 2.5km(2) or 14% of
BHL's claims in the Basin district only (see map
https://www.braddaheadltd.com/media/image-library/ ). The next
phase of drilling is planned for early 2024 at Basin North under an
existing notice of intent ("NOI") permit. Bradda is also permitting
an 80-hole programme at BWE and BW with the BLM (Bureau of Land
Management) where it expects significant resource growth stemming
from geological work done to date by our geologists. BW and BWE
cover an 11km(2) area, which is considerably larger than the BE
(1.5km(2) ), BEE (2.3km(2) ) and BN (2.3km(2) ).
-- SRK were selected to complete the Mineral Resource Update
analysis and applied a stringent approach to both the in-situ
density measurement and the cut off grade utilised. A lower in situ
density and higher cut off grade than previously reported resulted
in a more robust estimate. A significant and pragmatic building
block to develop the on-going test-work plan.
-- Table 2 below highlights the 'grade vs. tonnage' relationship
with the orebody and reflects a significant amount of flexibility
in potential open pit mining scenarios
-- The full study completed by SRK will be available on the
Company's website and SEDAR before November 10, 2023.
Ian Stalker, Chairman of Bradda Head, commented:
"The increase in LCE at Basin East Extension and into Basin
North highlights the impressive potential that we have always
believed is inherent at the Basin Project. The total drilled area
at Basin East/Basin East Extension/Basin North still only covers
2.5km(2) of our 41km(2) license area at Basin and Wikieup.
"We believe that 202 4 is going to be another exciting year of
resource growth for Bradda Head, hopefully in both projects areas -
San Domingo Pegmatites and the Basin Clays. We remain well funded,
even more so following the royalty payment. More drilling is
already planned at Basin North and Basin West upon receipt of the
Environmental Assessment ("EA") from the BLM in H2 2024. The area
we are permitting is over 11km(2) , which is considerably larger
than BE, BEE, and BN combined (c.6km(2) ). BHL is excellently
placed to take full advantage of the near-term resource growth
potential at our sedimentary lithium assets in Arizona. The BHL
team on site has done a remarkable job and showed persistence in
delineating the Basin Project to date.
"We have a compelling 12 months ahead with what we believe are a
number of material catalysts and we look forward to providing
further updates in 2023, including our ongoing work at our San
Domingo Pegmatite district as well as in 2024 in what we believe is
going to be another exciting year of resource growth for Bradda
both at San Domingo and Basin."
Mineral Resource Estimation
The updated 2023 Mineral Resource Estimate ("MRE") at Basin
authored by SRK Consulting (UK) Ltd ("SRK"), is reported in
accordance with the terminology and definitions given in the JORC
Code (2012) and the Canadian Institute of Mining, Metallurgy and
Petroleum guidelines, comprises: 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 for a total of 1.0 Mt LCE. The
statement, presented in Table 1, was prepared by Mr. Martin Pittuck
of SRK, who is considered a Qualified Person for this style of
mineralisation.
SRK has applied basic technical and economic assumptions for
open pit mining (mining and selling costs, mining recovery and
dilution, pit slope angles) and processing factors (Li recovery,
processing costs), to determine which portion of the block model
has reasonable prospects for eventual economic extraction as
required by the JORC Code. To achieve this, the Mineral Resource
has been subject to a pit optimisation study and cut-off grade
analysis.
The 2023 Q3 Mineral Resource follows the completion of a 14 hole
2,355.2m sonic drilling programme which was completed in Q2 2023.
Drilling covers double the area compared with the previous estimate
giving new relatively wide spaced intersections in Basin East
Extension and the southern part of Basin North.
2023 Mineral Resource Statement
Table 1: Mineral Resource Statement for Basin East, Basin East
Extension and Basin North effective 1 September 2023.
Classification Domain Tonnes Mean Grade Contained Metal
Mt Li (ppm) K (%) LCE K (kt)
(kt)
-------- ---------- ------- -------- --------
Indicated Upper Clay 11 720 3.5 42 380
----------------- -------- ---------- ------- -------- --------
Upper Clay HG 6 1350 3.2 43 190
------------------------------------ -------- ---------- ------- -------- --------
Lower Clay - - - - -
----------------- -------- ---------- ------- -------- --------
SubTotal 17 940 3.4 85 570
------------------------------------ -------- ---------- ------- -------- --------
Inferred Upper Clay 143 790 2.7 600 3,800
----------------- -------- ---------- ------- -------- --------
Upper Clay HG 48 1290 3.1 330 1,500
------------------------------------ -------- ---------- ------- -------- --------
Lower Clay 19 690 2.8 70 530
------------------------------------ -------- ---------- ------- -------- --------
SubTotal 210 900 2.8 1,000 5,800
------------------------------------ -------- ---------- ------- -------- --------
o Mineral Resource statement has an effective date of 1 September
2023.
o The Mineral Resource is reported using a cut-off grade of 550
ppm Li and is constrained to an optimised open pit shell, which
was generated using the following assumptions: lithium carbonate
metal prices of 22,000 USD/tLCE; State of Arizona royalty (selling
cost) of 6%; operating costs of 40 USD/ tore; Li recovery of 72%;
mining dilution and recovery of 0% and 100%; and pit slope angle
of 45deg.
o Tonnages are reported in metric units.
o Rounding as required by reporting guidelines may result in apparent
summation differences between tonnes, grade and contained metal
content which are not considered material.
o Conversion factor of Li metal to lithium carbonate equivalent
(LCE) = 5.323
o The figures above are reported on a gross basis given Bradda's
100% interest in the property
High Grade
Over one third of the contained LCE is in a High-Grade zone
within the Upper Clay zone with an average grade of some 1,300 ppm
Li. This High-Grade zone gives Bradda Head further optionality and
could have important economic implications for a potential future
mining operation. The shallow nature of the High-Grade zone, which
crops out in Basin East, would likely result in a low strip ratio,
enabling High-Grade ore to be scheduled early in a possible mine
plan as it sits in the upper part of the deposit.
Exploration Potential
The Upper Clay zone and Higher-Grade zone show remarkable extent
and continuity throughout the drilled parts of the Basin Project
and remain open to the north, indicating significant exploration
potential in the Basin North license. Geological mapping, surface
samples assayed for lithium, and geophysical (Ground Penetrating
Radar) survey work also indicate similar clay layers are likely
present throughout the majority of the Basin West license area. As
such, with further wide-spaced drilling Bradda Head sees excellent
potential to increase the resource base substantially with the goal
of reaching and exceeding 2.5MT LCE.
For the prospective parts of Basin East, Basin West, Basin West
Extension and Basin North claims, SRK has determined a JORC
compliant Exploration Target of 250 to 830 Mt of additional
material grading between 750 to 900 ppm Li. This is equivalent to a
range of between 1 to 4 Mt contained LCE. This Exploration Target
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 hangingwall
lithologies, together with surface sample Li grades, in the
undrilled parts of the Basin Project licence areas. See map (
https://www.braddaheadltd.com/media ).
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.
Comparison of updated 2023 to Q4 2022 MRE to Q1 2022 MRE to 2018
MRE:
2023 model sensitivity of LCE to cut-off grade:
Table 2: Grade-Tonnage sensitivity* to cut-off grade
Li cut-off Indicated
grade
(ppm) Inferred
----------------------------------------- ---------------------------------------
Tonnage Average Contained Tonnage Average Contained
above cut-off grade metal above above grade above metal above
above cut-off cut-off cut-off cut-off
cut-off
--------------- --------- ------------- --------- ------------- -------------
Mt Li (ppm) LCE (kt) Mt Li (ppm) LCE (kt)
--------------- --------- ------------- --------- ------------- -------------
650 15 990 77 190 910 940
--------------- --------- ------------- --------- ------------- -------------
750 11 1100 61 140 990 750
--------------- --------- ------------- --------- ------------- -------------
850 8 1220 49 80 1120 500
--------------- --------- ------------- --------- ------------- -------------
1000 6 1290 42 50 1270 340
--------------- --------- ------------- --------- ------------- -------------
*This table does not constitute a Mineral Resource, as defined
by the JORC Code, but is an expression of the sensitivity
of the average grade and contained tonnage of LCE to a selection
of different Li cut-off grades
Other Comments
Remarkably, the resource was developed in 4 separate programs
over the span of 5 years, drilling 62 holes for a total of 6,730
meters, extremely high value for share holders, resulting in over
1.0MT of LCE.
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.
Qualified Person SRK
The Mineral Resource statement has been authored by Mr. Martin
Pittuck, CEng, MIMMM, FGS who works for SRK Consulting (UK) Ltd, an
independent mining consultancy. Mr. Pittuck has over 25 years'
experience undertaking and reviewing Mineral Resource Estimates and
has worked on lithium clay estimates for over 5 years. Mr. Pittuck
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 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.
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. The Report is available for review on
SEDARplus (https://www.sedarplus.ca) and the Company's website
www.braddaheadltd.com.
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.
S
Contact:
Bradda Head Lithium Limited +44 (0) 1624 639 396
Ian Stalker, Executive Chairman
Denham Eke, Finance Director
Beaumont Cornish (Nomad)
James Biddle/Roland Cornish +44 20 7628 3396
Panmure Gordon (Joint Broker) +44 20 7886 2500
John Prior / Hugh Rich
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 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 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 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 That part of a Mineral Resource for which
Resource 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 That part of a Mineral Resource for which
Resource 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.
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END
MSCZZGZLGNGGFZZ
(END) Dow Jones Newswires
September 28, 2023 02:00 ET (06:00 GMT)
Bradda Head Lithium (LSE:BHL)
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