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.

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').

The 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 13th 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 1.4km2 of Bradda's total 41km2 of sedimentary claims in Basin and Wikieup. The 2023 resource expansion drill programme has increased this drilled area to 2.5km2 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 11km2 area, which is considerably larger than the BE (1.5km2), BEE (2.3km2) and BN (2.3km2).

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.

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 2.5km2 of our 41km2 license area at Basin and Wikieup.

'We believe that 2024 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 11km2, which is considerably larger than BE, BEE, and BN combined (c.6km2). 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.

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.

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.

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 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.

(C) 2023 Electronic News Publishing, source ENP Newswire