BRITISH VIRGIN ISLANDS - Bradda Head Lithium Ltd (AIM:BHL)(TSX-V:BHLI), the North America-focused lithium development group, is pleased to announce a new Mineral Resource Estimate ('MRE') at the Company's 100% owned Basin Project, Arizona.
The updated MRE was prepared in accordance with Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects) ('NI-43-101') by ABH Engineering Inc. ('ABH').
The Company is reporting a new MRE consisting of 99kt of of lithium carbonate equivalent ('LCE') at an average grade of 929 ppm lithium in Measured classification, 560kt of LCE at 860ppm Li in the Indicated classification and 2,175kt of LCE at 808ppm Li in the Inferred classification following the completion of drilling, reception and analysis of geochemical results, and new modeling of the Basin project. As per the Gross Overriding Royalty Agreement ('Royalty Agreement') with the Lithium Royalty Company ('LRC'), the new contained LCE Tonnage surpassed the contracted threshold of 2.5Mt and has enabled the Company to trigger the payment of US$3.0 million from LRC to Bradda Head. The Company has requested this payment be made, and therefore expects to be well funded for the future, including our drilling plans at San Domingo Arizona, our near surface Spodumene bearing pegmatite opportunity.
Highlights: The total new Mineral Resource now comprises 20 million tonnes in the Measured category at 929ppm Li consisting of 99kt LCE, 122 million tonnes in the Indicated category at 860 ppm Li consisting of 560kt LCE and 506 million tonnes in the Inferred category at 808 ppm Li, carrying 2,175 kt LCE
The resource now contains 20 million tonnes of 929ppm lithium for 99Ktons of LCE in the Measured category, the first ever in this category at Basin
As per the Royalty Agreement, BHL has formally requested payment of US $3.0 million from LRC; documentation has been submitted per verification by ABH Engineering Inc. ('ABH')
The results of the 2024 drilling programme demonstrate extensive lateral continuity from Basin East through to Basin North, identifying impressive consistency in the stratigraphic continuity of the Upper Clay and grade profile over a 3.0 x 2.0 km area that remains open to the north, east, and west
It's important to note that the Upper Clay Unit includes a continuous High-Grade layer which has an average grade of some 1,190 ppm Li, and is on average 15m thick and crops-out in Basin East potentially forming part of a phased mining processing operation that would clearly enhance early stages of mining and overall project economics
Five out of the eight drill holes encountered lithium mineralized 'Lower Clay' which makes a significant contribution to the overall resource, particularly as the Company is able to connect the Lower Clay mineral resource from Basin East to the northern edge of Basin North, a distance of 3.0km
The average in-situ grade of the Inferred Basin East Mineral Resource has decreased slightly from 900 to 822 ppm Li, a 9% decrease
ABH applied a new cut off grade of 550ppm Li to report the Mineral Resources and demonstrate reasonable prospects of eventual economic extraction ('RPEEE'). This is the same cut off grade previously used by SRK (550 ppm; effective 28th September 2023)
ABH were selected to complete the Mineral Resource Update analysis based upon their prior work in clay deposits across Nevada, having significant expertise and knowledge. They applied a robust approach to both the in-situ density measurement and the cut off grade utilised. The in-situ density measurement was based upon several hundred core sample measurements using best practices
Table 2 below highlights the 'grade vs. tonnage' sensitivities with the orebody and reflects a significant amount of flexibility in potential open pit mining scenarios
Following the 2024 drill program and new geologic mapping, the Company's understanding of the Basin project has increased significantly, resulting in renewed encouragement of extensive exploration opportunities for growth over the remainder of Basin North and all of Basin West where the Company continue working on permits
The complete NI43-101 Technical Report by ABH will be available on the Company's website and SEDAR by or before August 12, 2024
Ian Stalker, non-Executive Chair of Bradda Head, commented: 'This is a remarkable increase in LCE at Basin North and highlights the ever-growing potential that we continue to believe is inherent at the Basin Project. We have delivered on our objective to increase our resource to over 2.5MT, successfully triggering the US$3 million royalty payment from the LRC, which we have now formally requested be paid. The total drilled area at Basin East/Basin East Extension/Basin North covers only 4.0km2 of our 20.8km2 license area at Basin. The surface geology and geochemistry across the entire property strongly suggest further and extensive opportunities to continue expanding the Resource.'
'We are committed to continue on our strategy of permitting drill sites at Basin West and Basin North, where we believe extensive opportunities are obvious with a view to substantially building on the MRE and further proving up what an excellent project Basin is.'
Mineral Resource Estimation
The updated 2024 Mineral Resource Estimate ('MRE') at Basin authored by ABH Engineering Inc ('ABH'), is reported in accordance with the terminology and definitions given in the Canadian Institute of Mining, Metallurgy and Petroleum guidelines, comprising: a Measured Mineral Resource of 20 million tonnes at an average grade of 929ppm for a total of 99kt of LCE, an Indicated Mineral Resource of 122 million tonnes at an average grade of 860ppm Li for a total of 560 kt LCE and an Inferred Mineral Resource of 506 million tonnes at an average grade of 808 ppm Li for a total of 2,175 kt LCE.
ABH 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 CIM. To achieve this, the Mineral Resource has been subject to a pit optimisation study and cut-off grade analysis.
Exploration Potential
The Upper Clay, Upper Higher-Grade and Lower Clay horizons show remarkable extent and continuity throughout the drilled parts of the Basin Project and remain open to the north, west, and east indicating significant exploration potential in the overall Basin property. 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. Recent surface mapping over Basin West has identified substantial Upper and Lower Clay horizons, separated by tuff and basalt layers, providing stratigraphic context. Both tuff and basalt layers are found above the Upper and Lower Clays, indicating strong optimism in discovering additional clays in the northwest quadrant of Basin West. As such, with further wide-spaced drilling Bradda Head sees excellent potential to increase the resource base substantially.
Contact:
Tel: +44 (0) 1624 639 396
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, Basin North, and Basin West targets) and the Wikieup Project. The Basin East Project has a Measured Mineral Resource of 20 million tonnes consisting of 929ppm lithium for 99kt LCE, an Indicated Mineral Resource of 122 million tonnes at an average grade of 860 ppm lithium for 560 kt LCE and an Inferred Mineral Resource of 506 million tonnes at an average grade of 808 ppm lithium for a total of 2,175 kt 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.
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