07:18:57 EDT Wed 02 Jul 2025
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Bradda Head Lithium Ltd
Symbol BHLI
Shares Issued 390,609,439
Close 2024-08-26 C$ 0.025
Market Cap C$ 9,765,236
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Bradda Head samples 8.8 m of 0.97% Li2O at San Domingo

2024-09-03 20:39 ET - News Release

Mr. Ian Stalker reports

BRADDA HEAD LITHIUM LTD ANNOUNCES CHANNEL SAMPLE RESULTS AT SAN DOMINGO PROJECT

Bradda Head Lithium Ltd. has released the results from surface channel samples at the San Domingo (SD) pegmatite project in central Arizona. The Dragon target contains 8.80 metres (m) of 0.97 per cent lithium oxide (Li2O) and 10.40 m of 0.68 per cent Li2O, sampled from two separate prospects on the same pegmatite. Elevated cesium (Cs) is also consistently present and elevated in the channel and rock chip samples, an important element for the Department of Energy (DOE), and Cs is of significant economic value.

Channel sample highlights:

  • 8.80 m at 0.97 per cent Li20 with 174 parts per million (ppm) Cs at Dragon South;
  • 10.40 m at 0.68 per cent Li2O with 341 ppm Cs at Dragon South;
  • 4.80 m at 0.41 per cent Li2O with 336 ppm Cs at Dragon North;
  • 9.00 m at 0.29 per cent Li2O with 325 ppm Cs at Dragon North;
  • 4.70 m at 0.28 per cent Li2O with 176 ppm Cs at Dragon North;
  • 1.90 m at 0.29 per cent Li2O with 609 ppm Cs at Dragon South.

Highlights:

  • Significant new drill tagetes developed at San Domingo following on from a detailed surface channel sampling program;
  • A total of 84 channel samples were collected from Dragon South and North targets at the San Domingo project, and an additional 83 grab rock chip samples from across the project;
  • The Dragon channel sampling focused on historic prospects where exposure was fair to excellent;
  • Dragon South contains an excellent exposure on a northeast-trending pegmatite where sampling was conducted across its two prospects, one of which is a large cut, exposing abundant coarse spodumene crystals and bordered by massive quartz, typical LCE (lithium carbonate equivalent) pegmatite zoning;
  • Elevated Cs is also noted across the Dragon targets, with channel samples running as high as 994 ppm and grab samples up to 1,317 ppm, important as the DOE considers Cs a strategic and critical metal and actively seeking it;
  • Three open cuts at Dragon North were sampled, some of which consist of very coarse spodumene and lepidolite, containing 4.80 m at 0.41 per cent Li2O;
  • A geographically dispersed set of 52 mica samples were collected from pegmatites and analyzed with Libs, several revealing highly fractionated pegmatites with robust lithium content and excellent K/Rb (potassium/rubidium) ratios, fractionation across pegmatite swarms implicates higher degree of lithium development;
  • The company has commenced drill hole permitting on the Dragon targets, proposing up to 40 drill sites to thoroughly test shallow lithium mineralization;
  • The company continues building additional geochemical and geological data across the project, with an emphasis on supporting shallow drilling at Midnight Owl, Lone Giant, Thunder, White Ridge, Lower Jumbo and Morning Star.

Ian Stalker, executive chair, commented:

"These surface channel samples collected at the Dragon targets highlight just a few of the objectives the company is building for the next drilling program and gaining encouragement on the extent of lithium mineralization across the entire property. As we explore new or orphaned areas, we continue to uncover new targets worthy of drill testing and hope to continue bringing value to the San Domingo pegmatite project."

The Dragon target is broken into two areas, Dragon North and Dragon South. The Dragon South target contains several historical prospects sunk on lithium-bearing pegmatites, mineralization that exhibits an abundance of large spodumene crystals, more than 1.0 m. Prior surface rock chip samples contain upward of 7.99 per cent Li2O and several more than 500 ppm Cs (overlimits not assayed), spurring interest to identify the nature of mineralization, and establish a mapping and sampling program. This led to commencing a channel sampling program for better information on the lengths of potential lithium mineralization in outcrop and possible development of drill targets.

The channel sampling targeted both naturally outcropping pegmatite, dozer cut pegmatite, and historically excavated/mined pegmatite across both Dragon South and Dragon North. Naturally exposed samples returned lower lithium values likely due to surface weathering, but new (since 1945) exposures detected better lithium values as the fresher spodumene reveals less exposure to weathering. The best interval contains 8.80 m at 0.97 per cent Li2O with 174 ppm Cs and 131 ppm tin (Sn), and was collected from an excavated pit above a larger open cut on the Dragon South target. The lower cut contains 10.40 m at 0.68 per cent Li2O, with a high of 2.13 per cent Li2O over 1.5 m, and the entire interval contains 341 ppm Cs, 107 ppm Sn and 89 ppm Ta2O5 (tantalum pentoxide). The overall apparent width of mineralized pegmatite at this location is at least 12 m, although the full exposure is 20 m in width.

Several exposures are found at Dragon North and courtesy of historical mining plus excavation on lithium-bearing pegmatites. The south end of the northeast-southwest-trending pegmatite contains spodumene-lepidolite whereas the northern extent has lepidolite-spodumene, noting the very coarse nature of muscovite (pink lepidolite) intergrown with quartz and minor feldspar. Recent excavations contain 4.80 m at 0.41 per cent Li2O, 336 ppm Cs and 121 ppm Ta2O5 in a lepidolite dominated zone adjacent to a 9.00 m interval containing 0.29 per cent Li2O, 325 ppm Cs and 134 Ta2O5. A separate pegmatite 30 m to the northwest has excavations exposing lithium-bearing pegmatite, with channel samples running 4.70 m at 0.28 per cent Li2O with 176 ppm Cs and 103 ppm Ta2O5. Farther to the north on the same pegmatite, a small prospect contains minor spodumene and lepidolite, carrying 2.50 m at 0.19 per cent Li2O, 27 ppm Cs, 134 ppm Sn and 534 ppm Ta2O5, revealing localized very elevated tantalum values.

Additional and new surface grab rock samples include 2.40 per cent, 1.72 per cent, 1.64 per cent, 1.51 per cent, 1.30 per cent and 1.20 per cent Li2O from various outcrops across both Dragon South and North targets. Other elements of significant interest are Cs with values up to 1,317 ppm, Sn up to 358 ppm and Ta up to 437 ppm from select samples across Dragon. Surface sampling continues across the property to support the potential for channel sampling.

Dozens of muscovite (mica) samples were collected across the project and scanned by a third party with a Libs hand-held scanning device, resulting in identification of several highly fractionated pegmatites, including the Dragon area pegmatites. Libs are widely used across the industry and provide lithium, potassium and rubidium geochemistry of mica minerals within pegmatites. The Libs data help identify and prioritize the targets across the project. Further work into the results will continue and possibly expanded where rock geochemistry is inconclusive.

QA/QC (quality assurance/quality control)

Channel samples were cut in the field under the supervision of Joey Wilkins. Sample location sites were labelled, and rock channels were bagged, tied off, then transported to the core shed under lock and key. Samples were shipped by the company directly to SGS Laboratories in Burnaby, B.C., Canada, where SGS prepped then analyzed all samples using sodium peroxide fusion combined ICP-AES (inductively coupled plasma atomic emission spectroscopy) and ICP-MS (inductively coupled plasma mass spectrometry), method GE-ICM90A50. Certified standards were inserted into the sample stream and reviewed by the qualified person.

Qualified person (Bradda Head)

Joey Wilkins, BSc, PGeo, is chief operating officer at Bradda Head 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 BSc in geology, with more than 38 years of experience in mineral exploration, and is a qualified person under the Alternative Investment Market rules and a qualified person as defined under National Instrument 43-101. Mr. Wilkins consents to the inclusion of the technical information in this release and the context in which it appears.

Share option repricing

The company also announces that pursuant to its share option plan, it has reduced the exercise price of nine million outstanding share options.

The repricing applies to existing options previously granted to, among others, certain directors and management of the company pursuant to the company's share option plan. The existing options will be repriced from an exercise price of 0.06 pound sterling (10 Canadian cents), 0.09 pound sterling (15 Canadian cents), 0.105 pound sterling (15 Canadian cents) and 0.18 pound sterling (29 Canadian cents), as applicable, per ordinary share to 0.017 pound sterling (three Canadian cents) per ordinary share. No other terms of the existing options are being amended. The repricing is being taken in response to the current market challenges impacting the lithium sector and a reduction in the ensuing company's share price, and to better align with the recent share options granted to certain officers and directors of the company.

The repricing of the existing options is subject to the approval the TSX Venture Exchange, as well as by a majority of votes cast at a meeting of shareholders of the company, excluding the votes cast by shareholders who are subject to the repricing of the existing options. In the event that any of such approval is not obtained, the existing options will not be repriced. No options may be exercised until such approvals are obtained. Disinterested shareholder approval is expected to be sought at the company's next annual and special meeting of shareholders, anticipated to be held in November, 2024.

Directors and persons discharging managerial responsibilities (PDMRs) included in the repricing are detailed in an attached table.

The repricing of the existing options previously issued to insiders of the company constitutes a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The repricing is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 as no securities of the company are listed on certain exchanges specific by MI 61-101. It is also exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to Section 5.7(a) of MI 61-101 insofar as the fair market value of such repricing is less than 25 per cent of the company's market capitalization (as such term is defined in MI 61-101).

About Bradda Head Lithium Ltd.

Bradda Head 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 (the Basin East project and the Basin West project), and the Wikieup project.

The Basin East project has a measured mineral resource of 20 million tonnes (t) at an average grade of 929 ppm lithium (Li) for a total of 99,000 t LCE, an indicated mineral resource of 122 million t at an average grade of 860 ppm Li and an inferred mineral resource of 499 million t at an average grade of 810 ppm Li for a total of 2.81 million t LCE. The group intends to continue to develop its three phase 1 projects in Arizona, while 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-per-cent 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.

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