Receipt of US$2.5 Million Royalty Payment and Next Basin Drilling Programme Design Underway to Target a Further US$3 Million Royalty Payment
Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI, OTCQB:BHLIF), the North America-focused lithium development group, is pleased to announce receipt of the US$2.5 million payment from the Lithium Royalty Corporation (“LRC”) upon confirmation of the Mineral Resource Estimate (“MRE”) surpassing 1.0Mt Lithium Carbonate Equivalent (“LCE”) at the Company’s Basin Project, Arizona (September 28, 2023 PR). BHL has initiated a new drill plan for Basin with a particular focus on placing sites to reduce surface impact and meet the Company’s objective of defining an inferred total MRE of +2.5Mt LCE. The Company has also expanded the claim block to the north by adding an additional 2.84km2 of claims over open ground which has exceptional exploration potential.
Overview:
· BHL received payment of US$2.5 million from LRC following expansion of the Basin resource by drilling 2,355m and 14 sonic holes tripling the resource from 0.371Mt to 1.085Mt LCE.
· The next plan and strategy for continued MRE expansion at Basin North is underway with an emphasis on drilling holes at approximately 800m spacings. The anticipated programme is for approximately 10 holes or +/- 3,000m of drilling. The programme is pending Notice of Intent permit expansion with the Bureau of Land Management (“BLM”).
· The Company has also expanded its land package, adding 2.84km2 of mining claims to the north of the Basin North claims, where land was open for staking, increasing the Basin land package to 19.7km2.
· Our Exploration team in Arizona had identified the same stratigraphy of clays plus silica nodules along the northern boundary of the new claims as seen to the southwest in Basin West, a distance of over 4.0km.
· The Company has confidence in achieving the next milestone of 2.5Mt of LCE in situ, enabling BHL to receive a further US$3.0 million payment from LRC under the Royalty Agreement.
· SRK Consulting (UK) Ltd indicated that the Basin project has potential to grow another 1.0 to 4.0Mt LCE but notes that this is prior to the new license area added at Basin.
Ian Stalker, Executive Chair, commented:
“The receipt of our first royalty payment is a significant event, substantiating the Company’s confidence in its resource size and demonstrating the value of the Basin project, in particular. Following this, we are confident in proving up more than 2.5Mt of resource and triggering the final royalty payment of US$3 million from LRC.
“In addition to resource expansion, we are also expanding our claims, with indications that similarly positive geology extends to the north, into the new claims. These new claims will also feed into the high-grade potential of future resource expansion and will enable us to reach the 2.5Mt threshold for the next royalty payment more quickly.
“Diamond core drilling continues at the San Domingo Pegmatite project with approximately 50% of the program completed, where many of the holes have encountered long intervals of pegmatite with visible spodumene mineralization. Assay results have been slow to arrive due to the summer rush at the laboratory, but drilling progress is good. Additional permits were received from the State and BLM, sites are being constructed at the historic Morning Star lithium mine and we understand drilling there is planned to commence within the next week. The Company hopes to have news on San Domingo within the next few weeks as preliminary results have started to arrive.”
For further information please visit the Company’s website: www.braddaheadltd.com
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.
