Bradda Head Lithium Ltd Replacement: Geophysical Survey at Basin Results

RNS Number : 1744D

Bradda Head Lithium Ltd

14 February 2024

 

GENERAL TEXT AMENDMENT

 

The following amendment has been made to the

'Geophysical Survey at Basin Reveals Significant Gravity Low, New Drill Targets. Issue of Options'

announcement released on 14^th February 2024 at 07:00 under RNS No 0406D:

 

"The Company also announces that it has issued to certain of the Company's Directors and Operational Team (together the "Recipients") an aggregate of 2,850,000 new Options representing 0.73% of the Company's issued share capital, each at an exercise price of £0.015 (or C$0.034), representing a 33% premium to market close on AIM and the TSXV on Tuesday, 13 February 2024."

 

to

 

"The Company also announces that it has issued to certain of the Company's Directors and Operational Team (together the "Recipients") an aggregate of 2,850,000 new Options representing 0.73% of the Company's issued share capital, each at an exercise price of £0.02 (or C$0.034), representing a 38% premium to market close on AIM and the TSXV on Tuesday, 13 February 2024."

 

All other details remain unchanged.

 

The full amended text is shown below.

 

 

 

 

 

14 February 2024

 

Bradda Head Lithium Ltd

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

 

 Geophysical Survey at Basin Reveals Significant Gravity Low, New Drill Targets.

Issue of Options

 

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused lithium development group, announces results from a gravity survey conducted at its Basin clay project in Arizona. The gravity survey was completed in late 2023 and post-processing has revealed a significant gravity low over the Basin North area, interpreted as a deep, depositional centre for sedimentary rocks and a deep basement rock geological setting. See Figure 1 below.

 

 

Figure 1: Residual gravity cbg survey, property boundary, drill holes, access. Gravity low (dark blue) corresponds to thickening of the Upper Clay, contours lines are 0.25mGal, density is 2.50 gr/cc. Red colors on the image correspond to basement rock, Precambrian granodiorite and granitic rocks.

 

 

Summary:

·    Results and location of gravity low (deep blue) have been interpreted to represent thicker clay beds, in both the Upper and Lower Clay sequences - potentially substantially thicker than the previous reported lithium-in-clay intersections from our current 43-101 compliant Resource.

·    Gravity results also led to the reconnaissance on ground 1.6km to the north but contiguous to our existing Basin licences where new clay and distinct marker bed silica nodules were discovered, indicating the entire clay sequence sits in a shallow setting below post-mineral tuffs and basalt layers.

·    The results of the gravity survey and field reconnaissance prompted the staking of 2.8km² of new lode and placer claims to the north on open BLM land, expanding the clay potential significantly.

·    Excellent opportunity to grow the clay deposit to the north and especially to the west where Bradda has over 11km² of property to explore, and adds confidence to our intent to reach a new resource of +2.5mt of Lithium Carbonate Equivalent (LCE) at the end of the upcoming drilling campaign.

 

The survey was the first-ever gravity geophysical survey of this kind conducted at Basin and covers the entire property, having collected 130 points across approximately a 32km² area. Sample stations were collected into basement rock, which consists of Precambrian granites and granodiorite, and then across the center of the Basin property which consists largely of clays, tuffs, and basalt layers. Most importantly, the gravity low corresponds to the thickening of the Upper Clay horizon and potentially the Lower Clay horizon, providing encouragement that the Upper Clay continuing with similar thickness to the north for another 2.7km from the last drill hole (BES23-14) in 2023.

 

An additional 39 lode claims (2.6km²) were added further to the north, in order to secure opportunities across Basin North. These cover potentially thick clay sequences and, in the process, discovered clay outcrops in the northeastern portion of the newly added claims (see Figure 1 above). The clays have similar attributes to what is visually seen at Basin East and Basin West with silica nodules giving us confidence that the Upper and possibly Lower Clays continue uninterrupted under tuffs, basalts, and fluvial conglomerates.

 

The gravity survey also covers Basin West, showing gravity lows corresponding to lithium anomalous, >1,000ppm Li in clay outcrops, providing confidence of extensive clay extent throughout the property to the west and northwest.

 

The survey was conducted by consultant Tom Carpenter, an expert in gravity data collection for the last 35 years throughout North America. The data was collected with a LaCoste and Romberg Model-G gravity meter number G-230. This instrument is capable of sensitivities of +/- 0.005 mGal and had excellent repeatability on 8 stations. A total of 130 gravity station locations were collected with a Leica GPS Model GS15 to +/- 0.001 to 0.032 meters and processed the data, producing excellent elevation control data. All information was reduced and processed by Mr. Carpenter, who used his knowledge and Geosoft Oasis montaj software to correct the data for terrain (elevation changes) and removed all regional effects to produce complete bouguer and residual gravity maps, and at different densities, to better reflect the variable lithologic host rocks on the property.

 

Ian Stalker, Executive Chairman, commented:

"The results from this first-ever gravity based geophysical survey in our Basin district in Arizona USA add to our confidence to reach our new target resource no. of 2.5mt of LCE with a limited amount of further drilling. This cost-effective campaign is designed to allow us to unlock a further US$3m payment from LRC, the royalty company that has an existing royalty agreement with us.

 

"The potential existence of thicker clay beds in both Upper and Lower Clay sequences is hugely encouraging and reaffirms our understanding of our Basin Project as an important resource for lithium-in-clay. The additional discovery of the new clay and silica nodule beds to the north is indicative of favourable open pit based mining conditions, further promoting the value of this project.

 

"We look forward to commencing our new Basin focussed drilling campaign in the very near future."

 

 

Issue of Options

The Company also announces that it has issued to certain of the Company's Directors and Operational Team (together the "Recipients") an aggregate of 2,850,000 new Options representing 0.73% of the Company's issued share capital, each at an exercise price of £0.02 (or C$0.034), representing a 38% premium to market close on AIM and the TSXV on Tuesday, 13 February 2024.

 

Options awarded are subject to the following conditions (and the other terms of the Stock Option Plan of Bradda Head (the "Plan")):

 

·    Options vest immediately following approval;

·    No performance or non-performance conditions attached to them;

·    Options are exercisable for a period of five years from date of issue; and

·    The Options issued to each participant will lapse upon any participant no longer being an employee or connected person remunerated by the Company.

 

Directors and persons discharging managerial responsibilities ("PDMRs") included in the award are detailed in the table below:

 

Director/ PDMR	Current Options Held	New Options awarded	Total Options Held
Ian Stalker	18,250,000	1,000,000	19,250,000
Joey Wilkins	1,500,000	1,000,000	2,500,000
Piotr Schabik	1,000,000	500,000	1,500,000

 

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

 

 

 

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.

 

ENDS

 

 

Contact:

 

Bradda Head Lithium Limited	[phone]
Ian Stalker, Executive Chairman Denham Eke, Finance Director
Beaumont Cornish (Nomad)	[phone]
James Biddle / Roland Cornish
Panmure Gordon (Joint Broker)	[phone]
Kieran Hodgson / Hugh Rich
Shard Capital (Joint Broker)	[phone]
Damon Heath / Isabella Pierre
Red Cloud (North American Broker)	[phone]
Joe Fars
Tavistock (Financial PR)	+ 44 20 7920 3150
Nick Elwes / Adam Baynes	[e-mail]

 

 

 

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
Gal	Unit of acceleration typically used in precision gravimetry.

  

 

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"), which is authorised and regulated in the United Kingdom by the FCA and is a member of the London Stock Exchange, is the Company's nominated adviser for the purposes of the AIM Rules. Beaumont Cornish is acting exclusively for the Company and will not regard any other person (whether or not a recipient of this announcement) as a client and will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for providing advice in relation to the contents of this announcement or any other matter referred to herein. Beaumont Cornish's responsibilities as the Company's nominated adviser under the AIM Rules for Nominated Advisers are owed to the London Stock Exchange and not to any other person and in particular, but without limitation, in respect of their decision to acquire Ordinary Shares in reliance on any part of this announcement. Beaumont Cornish has not authorised the contents of this announcement for any purpose and no liability whatsoever is accepted by Beaumont Cornish, nor does it make any representation or warranty, express or implied, as to the accuracy of any information or opinion contained in this announcement or for the omission of any information. Beaumont Cornish expressly disclaims all and any responsibility or liability whether arising in tort, contract or otherwise which it might otherwise have in respect of this announcement.

 

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END

 

 

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