TIDMJAY
RNS Number : 2189A
Bluejay Mining PLC
01 February 2022
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector:
Mining
01 February 2022
Bluejay Mining plc ('Bluejay' or the 'Company')
Disko-Nuussuaq - New Joint-Venture Company incorporated
Bluejay Mining plc, the AIM, FSE listed and OTCQB traded
exploration and development company with projects in Greenland and
Finland, and KoBold Metals ("KoBold"), the Company's partner at the
Disko-Nuussuaq Nickel-Copper-Cobalt-Platinum Metals Project
("Disko") are pleased to announce the incorporation of the joint
venture ("JV") company, Nikkeli Greenland A/S ("Nikkeli") which
will be the new licence holder at Disko.
Summary
-- Greenland registered Nikkeli Greenland A/S created for the JV
with necessary applications lodged for the Disko licence
transfer
-- Planning of 2022 field activities currently in their final stage
Bluejay and KoBold are currently finalising the 2022 work and
field program which Bluejay will manage and execute on behalf of
the JV. Bluejay anticipates updating the market of these activities
in due course, with commencement expected in the latter part of Q2
2022.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018.
For further information please visit
http://www.bluejaymining.com or contact:
Roderick McIllree Bluejay Mining plc enquiry@bluejaymining.com
/ Kevin Sheil
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Ewan Leggat / Adam SP Angel Corporate Finance
Cowl LLP(Nominated Adviser) +44 (0) 20 3470 0470
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Hannam & Partners (Advisory)
Andrew Chubb LLP +44 (0) 20 7907 8500
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Tim Blythe / Megan
Ray Blytheweigh +44 (0) 20 7138 3205
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Notes
The Disko-Nuussuaq Project
Bluejay has a definitive joint venture agreement with KoBold
Metals at the Disko-Nuussuaq Nickel-Copper-Cobalt-Platinum Metals
Project to explore and discover new deposits rich in the critical
metals required for the green transition and electric vehicle
batteries. Principal investors in KoBold Metals include
Breakthrough Energy Ventures, a climate & technology fund,
overseen by Bill Gates, and whose investors include Michael
Bloomberg, Jeff Bezos, and Ray Dalio. Other investors in KoBold
include Andreessen Horowitz, the premier Silicon Valley venture
capital fund and Equinor, the Norwegian state-owned multinational
energy company.
The Disko -Nuussuaq Project is hosted within the West Greenland
Tertiary Igneous Province. This province is a well-recognised
geological analogue to the Siberian Flood Basalts of the Noril'sk
Region. Several peer-reviewed studies have highlighted the
similarities between the geology of the Noril'sk Region of Siberia,
which host the Noril'sk-Talnakh nickel-copper-cobalt-palladium
mining district, one of the worlds largest nickel producing
districts, and Disko-Nuussuaq province.
Historical work at Disko-Nuussuaq nickel mineralisation date
back to the discovery in 1870 of the 28-tonne Illukunguaq Boulder
of massive sulphide assaying 7% nickel, 3% copper and 512 grammes
per tonne ('g/t') cobalt, as well as more than 2.0 g/t platinum
group elements. More than 30 years of modern exploration by
companies, including Cominco and Falconbridge, but also more recent
work by Vismand Exploration and Cairn Energy backed Avannaa
Resources, as well as government-backed work and data acquisition
by the Geological Survey of Greenland/Geological Survey of Denmark,
has resulted in a vast amount of scientific data (both geological,
geochemical, and geophysical) all pointing to a process producing a
globally significant accumulation of metals. This multi-decade data
acquisition and field work represents millions of dollars of total
expenditure.
Detailed geochemical mass balance calculations on the Kukunguaq
Member sulphide-saturated contaminated flood-basalt sequence
indicates that 12-16 million tons of nickel missing from this
Member alone. The most likely explanation for this is that these
metals have precipitated as nickel and copper sulphides proximal to
the main volcanic vents and other structural corridors which
controlled the migration of magma. The licence areas cover all of
the currently known contaminated and metal-depleted volcanic
centres on Disko and Nuussuaq.
In addition to the magmatic sulphide mineralisation system,
massive gold bearing boulders of native iron have been found on the
Company's licences, specifically the 10 tonne Hammer Dal Boulder
providing another significant target for
iron-nickel-copper-cobalt-platinum group elements-gold
mineralisation.
Bluejay has undertaken multiple work campaigns over several
seasons with the inclusion of several state sponsored technical
partners, undertaking aerial surveys, extensive geochemical
sampling utilising the most modern analytical techniques with
ultra-low sensitivity as well as soil gas hydrocarbon sampling.
These new "deep-penetrating" geochemical and gas surveys have for
the first time provided metal anomaly signals coincident with
previously identified large-scale geophysical responses.
Bluejay's assessment and investigation over the last several
years has identified more than 20 drill-ready targets on licence
holdings at Disko-Nuussuaq. Of the targets defined, notably, there
are seven large conductive targets previously defined by Vismand
Exploration and Avannaa Resources and reconfirmed by Bluejay. The
two largest conductive targets are extraordinary in scale, the
largest being more than 10.0 kilometres ('km') long and around 2.0
km wide and another being around 4.8 km long and 800 metres ('m')
wide; both comparable in footprint to the world-class
Noril'sk-Talnakh ore bodies in Siberia.
Details on the potential analogue Norilsk-Talnakh nickel
district in Siberia
-- The copper-nickel-platinum group metal deposits at Noril
'sk-Talnakh are located at a depth of 500-to 1,500m beneath surface
in a series of flood basalts and sedimentary rocks. The massive
sulphide orebodies are hosted within the Talnakh intrusive
complex.
-- The ores range from nickel-rich contact ores with copper,
cobalt, platinum, palladium, rhodium, and gold, footwall and
hanging wall Cuprous ores rich in copper and precious metals with
some nickel and cobalt, and disseminated sulphide
mineralisation.
-- The most recent reserve estimates by the mining company MMC
Noril'sk Nickel estimate proven and probable ore reserves totalling
663.1 million tonnes ('Mt'), containing 6.0 Mt of nickel, 11.4 Mt
of copper and 117.5 million ounces ('Moz') of platinum group
metals. Reserves are reportedly sufficient to support 80 years of
output. Measured and indicated ore resources are in the order of a
stunning 1,702.9 Mt containing 11.6 Mt of nickel, 22 Mt of copper
and 257.3 Moz of platinum group metals. Source: MMC Norilsk Nickel,
Annual Report 2020.
-- It is estimated that since mining started in 1940, the
Norilsk district has produced a total of 8.3 Mt of nickel, 16.3 Mt
of copper, 178 Moz of platinum group metals, and 3.1 Moz of gold
from 691 Mt of ore. After adjusting for mining and processing
losses, the total pre-mined resource for the district camp is
estimated to be 2,800 Mt at 0.9% nickel, 1.7% copper, 6.0 g/t
platinum group metals and 0.2 g/t gold.
-- Comparing global reserves plus resources the Norilsk camp
contains 15% of the global resource of sulphide nickel, 27% of the
total global palladium resource, and 30% of the global resource of
magmatic sulphide-hosted copper.
-- Based on the above estimates of combined reserves, resources,
and historic production, the total value of the ores in the Norilsk
district in 2020 metal prices is US$1.4 trillion, of which the
platinum group elements account for about 60%; the Oktyabrysk
massive sulphide orebody alone (accessed from the Oktyabrsk and
Taimyr mines) contain ed over half a trillion dollars of metal
value, exceeding the value the next 5 largest metal deposits and
making it by far the most valuable single orebody of any type on
earth.
The exploration licence areas at Disko-Nuussuaq that is in the
process of being transferred covers 2,897 square kilometres. The
licence holdings are concentrated over the most prospective
settings/contaminated basalt, as well as targeting the larger
fault-systems & magmatic pathways. The land holdings also host
most of the previously recognized magmatic sulphide and native iron
boulders and native iron occurrences.
The nearest major town to the holdings at Disko-Nuussuaq is
Ilulissat which is located in mainland Greenland c. 100-170 km
south-east of the licence areas. Ilulissat is the gateway, as well
as the educational, business and administration centre to northern
West Greenland, and is an active hub with an airport, deep-water
port facilities and service providers. A new international airport
is currently being constructed in Ilulissat and is scheduled to be
completed in 2024. Bluejay has had an established office and
storage facility in Ilulissat since 2016 which has been used to
support all West Greenland activity.
Key Terms of the JV Agreement
-- KoBold will earn 51% of the Disko-Nuussuaq licence holding
through a two stage earn-in commitment
o Stage I: Advanced geological and geophysical evaluation of
Disko -Nuussuaq to refine drill-targets using KoBold's proprietary
technology, $3.4 million sole-funded by 31 December 2022
o Stage II: Sole funding of either US$11.6 million in drilling
expenditure or 15 pre-agreed drill holes within the Disko licence
area by 31 December 2024
-- Bluejay can maintain its 49% shareholding by funding its pro-rata commitment after Stage II
Bluejay Mining Plc
Bluejay is listed on the London AIM market and Frankfurt Stock
Exchange and its shares also trade on the OTCQB Market in the US.
With multiple projects in Greenland and Finland, Bluejay has now
secured three globally respected entities as partner, customer, and
co-investor on three of its projects, giving the Company and its
shareholders both portfolio and commodity diversification in high
quality jurisdictions.
Bluejay's most advanced project is the Dundas Ilmenite Project
in Greenland, which is fully permitted and being developed towards
production in the near term, with preparatory activities scheduled
to commence in 2022. The Dundas Ilmenite Project has been proven to
be the highest-grade mineral sand ilmenite project globally, with a
Mineral Resource reported in accordance with the JORC Code of 117Mt
at 6.1% ilmenite and a maiden offshore Exploration Target of
between 300Mt and 530Mt of ilmenite at an average expected grade
range of 0.4 - 4.8% ilmenite in-situ. The Company has agreed a
Master Distribution Agreement with a major Asian conglomerate for
up-to 340ktpa of its anticipated 440ktpa annual output. The Company
has signed on a major European bank to head the financing syndicate
for Dundas. The Company's strategy is focused on securing financing
ahead of commencing commercial production at Dundas in order to
create a company capable of self-funding exploration on its current
and future projects.
In addition to the Disko-Nuussuaq Project, Bluejay holds two
additional projects in Greenland - the 692sq km Kangerluarsuk
zinc-lead- silver project ('Kangerluarsuk'), where historical work
has recovered grades of 41% zinc, 9.3% lead and 596 g/t silver and
identified four large-scale drill ready targets; and the 2,025 sq
km Thunderstone project which has the potential to host large-scale
base metal and gold deposits. Bluejay has agreed a joint-venture
agreement with a mining major at its Enonkoski
nickel-copper-cobalt-platinum metals project in Finland. In
addition to this, holds Bluejay two other projects in Finland and
has recently signed a binding agreement for a partial divestment in
a fourth Finnish project.
**ENDS**
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