TIDMJAY
RNS Number : 9902G
Bluejay Mining PLC
24 July 2023
24 July 2023
Operational and Strategic Update on
Bluejay's Finland Projects &
Positive Visual Indications from Drilling at
the Hammaslahti Cu-Zn-Au-Ag Project
Bluejay Mining plc (AIM: JAY) ('Bluejay', the 'Group' or the
'Company'), the AIM, FSE-listed and OTCQB traded exploration and
development company with projects in Greenland and Finland, is
pleased to provide an operational and strategic update on the
Company's portfolio of exploration projects in eastern Finland,
namely the Hammaslahti copper-zinc-gold-silver ('Cu-Zn-Au-Ag')
Project, the Enonkoski nickel-copper-cobalt ('Ni-Cu-Co') Project,
the Outokumpu copper-zinc-nickel-cobalt-silver-gold
('Cu-Zn-Ni-Co-Ag-Au') Project and the Paltamo and Rautavaara
nickel-zinc-copper-cobalt ('Ni-Zn-Cu-Co') projects.
All projects are held by Bluejay's 100% owned subsidiaries,
FinnAust Mining Finland Oy, and FinnAust Mining Northern Oy
(hereafter collectively 'FinnAust').
Highlights
-- Geochemical assay results from Phase 1 of recent diamond
drilling programme at Hammaslahti Cu-Zn-Au-Ag Project are expected
shortly. A short programme of follow up drilling is due to commence
August 2023 with a view to develop a maiden Mineral Resource
Estimate ('MRE') for the East-lode ('E-lode') as well as the down
plunge extensions to previously mined ore lodes.
o All seven Phase 1 drill holes intersected broad zones of
disseminated to semi-massive sulphide mineralisation corresponding
to the E-lode orebody, some of which exceeded 10 metres ('m') in
width.
-- Bluejay and Rio Tinto have concluded their Joint Venture
Agreement and Earn-in Agreement ('JV') on the Enonkoski Ni-Cu-Co
Project. Bluejay retains its 100% ownership of the Project with Rio
Tinto having invested a total of US$4.65 million. The Company's
focus will now be to assess numerous as-yet-untested targets that
have been identified along the Enonkoski Belt.
o Drilling of up to 1,500m planned in late 2023 to test the
Makkola, Hälvalä and Kiislampi targets (subject to availability of
funding and drilling contractor).
-- Detailed ground gravity and airborne magnetic surveys planned
for the Outokumpu Cu-Zn-Ni-Co-Ag-Au Project to progress the
high-priority Haapovaara target (subject to availability of
funding).
o Haapovaara is located only a few kilometres ('km') along
strike, to the North East, of Boilden's Kylylahti Mine. The target
is coincident with two gravity highs in existing regional gravity
data that have never been drill tested.
o Bluejay recently increased its licence areas and is now the
largest landholder on the highly prospective Outokumpu belt, that
hosts three past producing high-grade, polymetallic mines.
-- Divestment of the Company's non-core Finnish projects is
progressing with the first day of trading of Metals One plc on the
AIM expected on 31 July 2023. Bluejay to receive cash and shares
valued in excess of GBP4 million GBP in exchange for the Paltamo
and Rautavaara Black Schist projects. Following its admission to
the AIM, Bluejay is expected to hold 29.01% of the issued share
capital in Metals One.
Executive Chairman of Bluejay Mining plc, Robert Edwards,
commented:
"Bluejay remains convinced that our portfolio of base metal
projects in Greenland and Finland present commercial opportunities
to generate value well in excess of outlay. As we have previously
stated, we have been keen to advance our Finnish exploration
portfolio in 2023 as we believe that the opportunities merit
expenditure due to the geological opportunity combined with the
relative ease and low cost of execution. Bluejay's exploration
activities in Finland are supported by our in-country exploration
office, core storage and logging facilities located in the town of
Outokumpu.
"Firstly, the Strategic Review (see Bluejay press release dated:
14 February 2023 ) highlighted that the near-mine targets at
Hammaslahti represents a clear opportunity that can be advanced at
modest cost. Having drilled and logged the cores drilled to date,
we await assay results. Further drilling is planned in early August
after which a wider drilling program may be embarked on if
warranted. Hammaslahti is a former operating mine within a belt
that we control. We know from other districts around the world that
Volcanic Massive Sulphide (VMS) deposits almost always occur in
clusters, not singularly. Our strategy is to develop a footprint
within the belt that would ultimately support commercial mine
development.
"Secondly, Bluejay will retain its 100% interest in the 15 km
long Enonkoski Belt post the conclusion of the RTX JV agreement.
Like Hammaslahti, the licence area hosts former producing mines as
well as high ranking targets which we aim to pursue, subject to
availability of funding. Quite a significant body of work was
completed under the JV including diamond drilling, top of bedrock
diamond drilling, extensive geophysical surveys and a significant
amount of analyses, measurements and relogging of historic drill
core that highlights several mafic-ultramafic intrusions within the
belt. Of highest priority to Bluejay is the Makkola intrusion which
is located close to the former Hälvälä Ni-Cu-Co Mine. This target
ranked top in the recent belt scale prospectivity assessment of all
known intrusions. The recent work, including a detailed ground
gravity survey and analysis, measurements and relogging of historic
drill core, indicates the potential for the presence of shallow
mineralisation at Makkola which the Company intends to drill test
in the near future.
"Thirdly, the Outokumpu Project which also hosts former
high-grade polymetallic mines, presents an exciting exploration
opportunity. Some shallow drill targets remain untested despite
their proximity to a recently operating mine, e.g., the Haapovaara
target. Much of the deeper parts of the region remain essentially
unexplored. The consistently high grades and unique metal basket
that Outokumpu-type ore provides make it compelling exploration
target in the context of increasing demand for base metals related
to the battery industrial ecosystems, electrification, and the
green energy transition. Bluejay has recently increased its land
package and is now the largest land holder on the Outokumpu Belt.
Low-cost ground gravity and magnetic surveys are the next stage of
work to be completed, after which Bluejay will develop an optimal
strategy for development. When the opportunity arises, Bluejay will
continue to hone its focus on opportunities that provide for
commercial investment, or divestment."
Enonkoski Ni-Cu-Co Project:
Drilling planned (subject to availability of funding)
On 24 July 2023, Bluejay announced that in regard to the
previously announced JV Agreement (see Bluejay's press release
dated: 10 November 2020 ) through which Rio Tinto Exploration
Finland Oy ('Rio Tinto') and Bluejay have been performing
exploration of the Enonkoski Ni-Cu-Co Project ('Enonkoski'), the
Company and Rio Tinto have ended the JV with immediate effect (see
Bluejay press release dated: 24 July 2023 ). Consequently, Rio
Tinto will cease to have any interest in the Enonkoski Project.
Bluejay will retain 100% ownership of the Project (through the
Company's subsidiary FinnAust Mining Finland Oy) along with all
data, samples and drill cores collected during the JV Agreement
with Rio Tinto.
The JV has enabled Bluejay to significantly advance the
Enonkoski Project through US$ 4.65 million in exploration
expenditure. It has opened the potential of targets close to the
historic Hälvälä Ni-Cu-Co Mine, as well as multiple high priority
targets within less explored parts of the belt that remain
untested. The exploration programmes carried out to date have
strengthened the Company's belief in the prospectivity of the
Project, and Senior Management firmly believes that Enonkoski will
continue to augment Bluejay's portfolio of assets. Bluejay's focus
will now be to assess numerous as-yet-untested targets that have
been identified along the Enonkoski Belt through the various
regional geophysical surveys, top of bedrock drilling and
geological mapping programmes completed under the JV (summarised in
the section below "Highlights of exploration completed under the JV
with Rio Tinto").
The highest priority target is the Makkola intrusion (see 'E' in
Figure 2), which is located close to the Hälvälä Ni-Cu-Co Mine (see
'F' in Figure 2) in the eastern part of the >15 km long Belt.
Makkola ranked very highly in the recent belt scale prospectivity
assessment of all known intrusions. A 747-station ground gravity
survey, covering a 2 square kilometre ('sq km') area of
Makkola-Hälvälä was completed late last year, along with reference
logging and sampling of historical drill cores. This work supports
the potential for the presence of shallow mineralisation.
At Kiislampi (see 'G' in Figure 2), recent 3D inversion of
historic ground gravity data has identified a highly anomalous zone
of high density that warrants drill testing. A shallow historical
drillhole, M421102R350, drilled by the Geological Survey of Finland
('GTK') confirmed that the Kiislampi target is located within a
mafic-ultramafic intrusion (the hole intersected noritic -
pyroxenitic rocks). This was further confirmed in recent top of
bedrock ('ToB') shallow drillholes that intersected gabbroic and
noritic rocks. A massive pyrrhotite-chalcopyrite vein with 0.2% Ni
was observed in norite during Bluejay's reference logging of hole
M421102R350. However, all historical drilling at Kiislampi did not
reach the highly anomalous zone of high density identified from the
recent 3D inversion.
Bluejay intends carry out a drill programme of up to 1,500 m
testing the Makkola, Hälvalä near-mine and Kiislampi targets in
late 2023 to (subject to availability of funding and drilling
contractor). Alongside these activities, we will be assessing
strategies for the Project going forward for the best outcome for
our shareholders.
Figure 1. Enonkoski Ni-Cu-Co Project permit areas, as of July
2023.
Figure 2. Map of the Enonkoski Belt showing Bluejay's Licence
areas, drill holes drilled during the JV Agreement with Rio Tinto,
confirmed mafic-ultramafic intrusions, high priority target areas
and the Laukunkangas Mining Lease.
Figure 3. Map of the Enonkoski Belt showing Bluejay's Licence
areas as blue polygons and the location of the geophysical survey
conducted during the JV Agreement with Rio Tinto.
Figure 4. Belt-scale target ranking based on explorability and
technical evidence and prioritisation for the Enonkoski Project,
demonstrating the wealth of remaining targets throughout the
Enonkoski Belt (see next figure).
Highlights of exploration completed at Enonkoski under the JV
with Rio Tinto:
-- Total exploration expenditures by Rio Tinto totalled US$ 4.65
million over a 32-month period. FinnAust were the operator under
the JV and received a management fee for these services.
-- 9,667 m of diamond drilling for a total of 29 new drill holes
and extensions of 2 historic drill holes. The diamond drilling
carried out during the JV was focussed on the Laukunlampi,
Laukunsuo, Muhelampi and Tevanjoki near-mine target areas (see 'A'
and 'C' in Figure 2), all surrounding the former Laukunkangas
Ni-Cu-Co Mine (see 'B' in Figure 2).
-- Rio Tinto's primary interest from start of the JV was on the
targets previously identified by Bluejay immediately outside the
Laukunkangas Mining Lease. All diamond drill holes drilled during
the JV were within a maximum distance of 1.3 km from the Mining
Lease and most drill holes are only a few hundred metres away from
the Mining Lease boundary. Much of the >15 km long Enonkoski
Belt remains largely untested by drilling (see Figure 2).
-- Re-logging and sampling historical drill cores drilled by the
Finnish state mining company, Outokumpu Oy, the GTK and FinnAust,
totalling 65 drill holes for >16,750 m, including comprehensive
lithogeochemistry of selected intervals, totalling >1,000
drill-core samples; specific gravity, magnetic susceptibility,
conductivity, and portable x-ray fluorescence ('pXRF')
measurements; and detailed core photography.
-- 160 ToB diamond drill holes for a total of 1,633.5 m of drilling over 7 targets.
-- 161.5 line-kilometres ('line-km') of ground magnetics over 2 targets (see Figure 3).
-- 2018 line-km of three component ('3C') UAV magnetics surveys,
covering 50.2 sq km (see Figure 3).
-- A 747-station ground gravity survey, covering a 2 sq km area
at the Makkola-Hälvälä target (see Figure 3).
-- Downhole electromagnetic ('DHEM') surveys were completed on a
total of more than 50 drillholes for a total of >22,000m
including measurements of both historic and new drill holes with
several loop configurations.
-- 2.5D airborne electromagnetic inversion processing completed
on 1,055 line-km of HeliTEM data by Intrepid Geophysics.
-- Geological, geophysical and geochemical modelling (Leapfrog Geo/Edge, ioGAS).
-- Lithogeochemical and petrological studies by consultant geologist, Dr Hannu Makkonen.
-- Prospectivity analysis and ranking of all known intrusions.
-- Geological mapping and outcrop sampling.
-- LIBS (Laser Induced Breakdown Spectroscopy) scanning of selected drill core.
Figure 5. Belt-scale target ranking and prioritisation for the
Enonkoski Project. Note that target ID's correspond to those in the
previous figure. Top of Bedrock drilling shown by colored circles,
diamond drill holes shown by black circles with drill hole trace
also shown.
Hammaslahti Cu-Zn-Au-Ag Project:
Drill Programme Successfully Completed
Bluejay is pleased to share the preliminary results from the
first exploration programme of 2023 at the Hammaslahti Cu-Zn-Au-Ag
Project ('Hammaslahti') in eastern Finland. Bluejay's most recent
fund raise of GBP1.3 million ($1.65 million) announced on 28 June
(see Bluejay press release dated: 28 June 2023 ) will be focussed
on the further development of the 100% owned Hammaslahti Project
where the Company completed Phase 1 of a diamond drilling programme
in May-June.
-- During Phase 1, seven diamond drill holes (see Figure 7) for
a total of 1,935.7 m were completed at Hammaslahti during May-June,
targeting extensions of the E-lode mineralisation discovered by the
Company during previous exploration drilling testing favourable
geological contacts close to the historic Hammaslahti Cu-Zn-Au-Ag
Mine (see Figure 6).
-- Encouragingly all seven drill holes intersected sulphide
mineralisation corresponding to the E-lode orebody. Mineralised
zones of disseminated to semi-massive sulphide (pyrrhotite,
sphalerite, chalcopyrite, with subordinate galena and pyrite), some
of which are in excess of 10 m width, have been intersected.
Systematic measurements using a handheld pXRF (portable X-ray
fluorescence) instrument confirm the presence of anomalous copper,
zinc and lead within the mineralised intervals. Mineralisation is
associated with strong sericite, carbonate and tremolite alteration
and silicification.
-- Selected drill core samples from the mineralised zones have
been submitted for geochemical analysis at ALS Laboratories in
Outokumpu (Finland) and Loughrea (Ireland). Assays results are
pending.
-- Prospect of a further short drill programme to be carried out
in August, followed by 3D resource modelling of the E-lode once all
assay results have been received with a view to developing a maiden
MRE for the E-lode as well as the down-plunge extensions to
previously mined ore-lodes that were drilled by the Company in
earlier drilling campaigns.
-- The Project has the potential to provide meaningful value to
shareholders in a short timeframe.
The Phase 1 programme undertaken in May-June 2023 focused on
infill drilling with the aim to get a better understanding of the
volume and grades of the E-lode mineralisation. The E-lode remains
open up plunge, but the true potential to increase the volume of
the mineralisation after the Phase 1 drilling is located down
plunge from the southernmost drill hole drilled in 2014,
intersecting the E-lode mineralisation at a vertical depth of
approximately 300 m.
All historic ore bodies are located close to the same contact
between black schist and strongly hydrothermally altered rocks, but
the E-lode is so far the only significant mineralisation found east
of the former mine on the other side of a large fold structure. No
drilling targeting possible structural repetitions of the E-lode
have so far been conducted, providing significant further potential
to the Project.
Two distinct gravity anomalies north-northeast of the E-lode,
within FinnAust's Exploration Licence areas, will be tested by
shallow drilling during the next phase of drilling, these anomalies
could represent near surface parts of previously unidentified
sulphide mineralisation close to the E-lode mineralisation. The
gravity anomalies are furthermore located in a favourable
structural position within a hinge zone interpreted from airborne
magnetics, considered by the Company to significantly increase the
prospectivity of these targets.
The Company will now finalise the geochemical analysis of
selected mineralised intervals from the seven holes drilled during
Phase 1 of the Hammaslahti drill programme, followed by detailed 3D
modelling and interpretation once the assay results have been
received. Follow up drilling has been planned to commence early
August.
Commenting on the results of the recent drilling programme at
Hammaslahti,
Thomas Levin, Chief Operating Officer of Bluejay subsidiary
FinnAust Mining Finland Oy, stated:
"The E-lode mineralisation that was discovered by the Company
during a near-mine drilling campaign almost a decade ago has since
then been a drill ready exploration target, and I am delighted to
report that the first phase of the follow up drilling has now been
successfully completed.
"The majority of the assay results are still pending, but
visually we have been able to confirm extensions of the E-lode
copper-zinc +/- gold-silver-lead sulphide mineralisation within the
new drill core. The visual observations have also been confirmed by
data from pXRF measurements. All seven new drill holes intersected
the mineralisation, with five out of seven drill holes showing
anomalous sulphide content over intervals in excess of 10 m. The
accuracy of the depths at which we intersected the E-lode, relative
to the expected depths validates that our geological model for the
E-lode is robust - an important step as we move towards undertaking
a maiden MRE.
"The conducted infill drilling focused on up-dip and down-dip
extensions of the mineralisation, with the aim to get a better
understanding of the volume and grades of the E-lode. Previous
drilling targeting the E-lode consisted mainly of single drill
holes on sections 50-100 m apart, with most of these historic drill
holes also intersecting mineralisation. Future drilling will focus
on the possible down plunge and up plunge extensions, as well as
possible structural repetitions of the E-lode.
"Two distinct gravity anomalies have been identified close to a
fold closure along strike from the historic mine and the E-lode,
and these targets are of very high priority for future drilling
since they might represent shallow parts of previously unknown
areas of mineralisation.
"I am also delighted to report that we have a drill rig secured
for follow up drilling in August. Several highly interesting target
areas have been identified further east of the historic Hammaslahti
Mine, and modelling and reinterpretations of these targets is
ongoing. Additionally, a lithogeochemical and petrological study
has been commissioned by VMS expert, Dr Denis Schlatter of
Helvetica Exploration Services GmbH to better constrain controls on
the mineralisation. We look forward to providing further updates on
all ongoing activities in due course".
Figure 6. Hammaslahti Cu-Zn-Ag-Au Project permit areas, as of
July 2023. The permits cover three key areas, namely the
Hammaslahti Mine, Tikkala and Tohmajärvi. Diamond drilling is
focussed on brownfield targets near the former Hammaslahti Mine.
Bluejay currently has field teams in the southern parts of the belt
following up on high-grade mineralisation reported historically
from boulders and outcrops.
Figure 7. Oblique long section looking west northwest. The mined
Hammaslahti ore lodes (named S-, N- and Z-lodes) all remain open
down plunge. In 2014, Bluejay discovered a new ore lode (E-lode) to
the east of the former mine. The completed Phase 1 drill programme
focussed on testing both the up and down dip and up plunge
extensions to the E-lode. The red grade shells show mineralisation
exceeding 1% copper-equivalent ('CuEq'), much of which was mined by
Outokumpu Oy. Assumptions used for the CuEq calculations were based
on current spot metal prices (as of 29(th) May 2023) of US$3.69/lb
copper, US$1.06/lb zinc, US$0.94/lb lead, US$23.3/oz Ag and
US$1,963.6/oz gold, and metallurgical recoveries were assumed to be
100%. The blue shells represent confirmed extensions to previously
mined ore lodes and/or newly discovered ore lodes based upon
drilling by FinnAust Mining Finland Oy, a 100% owned subsidiary of
Bluejay Mining plc.
Figure 8. Photos of the E-lode sulphide mineralisation from
drill hole HAM0001 (left) and HAM0005 (right).
Figure 9. Close-up photo of the E-lode sulphide mineralisation
from drill hole HAM0001 at 191.6 m, showing pyrrhotite and
sphalerite with minor chalcopyrite with strong actinolite
alteration and silicification.
Hammaslahti Project - about drilling extensions to the E-lode
and testing near-mine targets
Bluejay owns 100% of the Hammaslahti Project through its wholly
owned subsidiary FinnAust Mining Finland Oy ('FinnAust'). Bluejay's
licence area contains the historic Hammaslahti Mine, which was
operated by the Finnish state mining company, Outokumpu Oy from
1971 to 1986. The open-pit and underground mine produced a total of
7 million tonnes grading 1.16% Cu, 1.55% Zn, 0.59 grammes per tonne
('g/t') Au and 5.2 g/t Ag ( Geological Survey of Finland, 2023 ).
The polymetallic mineralisation at Hammaslahti is interpreted to be
a partially re-mobilised volcanogenic massive sulphide ('VMS') type
deposit. The Company's exploration permits, totalling 39.3 square
kilometres ('sq km'), cover the majority of the
Hammaslahti-Tohmajärvi Metallogenic Belt. The belt is considered
permissive for further polymetallic VMS deposits as supported by
the presence of high-grade mineralised outcrops and boulders within
Bluejay's licence areas south of the former mine, providing further
upside to the Project.
The Company's exploration efforts have so far mostly focused on
brownfields targets in the near-mine area, with only minor
exploration conducted elsewhere on the belt to date. Drilling by
FinnAust has confirmed that all previously mined ore lodes at
Hammaslahti (namely, the Z-, N- and S-lodes) remain open down
plunge to the South and has also resulted in the discovery of a new
ore lode, the E-lode in 2014. The E-lode discovery hole (Hole ID:
M424114-R325) returned 8.65 m grading 2.2% Cu, 2.0% Zn, 0.5 % Pb,
47.5 g/t Ag, and 0.5 g/t Au, including 5.60 m grading 3.2% Cu, 3.2%
Zn, 81.1 g/t Ag, and 0.9 g/t Au hosted in semi-massive to massive
sulphides (see FinnAust Mining press release dated: 21 July 2014 ).
The E-lode is located approximately 200 m east from underground
infrastructure of the former Hammaslahti Mine and is comparable in
grade and style of mineralisation to the ore-lodes that were mined
historically. The S-lode has been demonstrated in earlier drilling
by FinnAust to be open down-plunge to the south, beyond 500 m
depth, e.g., 15 m from 536 m grading 3.1% Cu, 0.1% Zn, 14.4 g/t Ag
and 0.8 g/t Au, including 3.4 m grading 11.5% Cu, 0.4% Zn, 53.4 g/t
Ag and 3.0 g/t Au. Prior to the Phase 1 drilling 2023 completed in
May-June no follow up drilling had been conducted on the
E-lode.
Figure 10. Bluejay's licence areas in the southern part of the
Hammaslahti Belt, showing historical highest-grade float and
outcrops samples with underlying airborne regional magnetics.
Bluejay's geologists are currently carrying out fieldwork in these
areas to follow up on these occurrences.
Outokumpu Cu-Zn-Ni-Co-Ag-Au Project:
Ground Gravity and Airborne Magnetic Surveys Planned
Bluejay plans to undertake detailed ground gravity and 3C UAV
magnetics surveys over the high-priority Haapovaara target Belt
(subject to availability of funding) at its Outokumpu
Cu-Zn-Ni-Co-Ag-Au Project (see Figure 12). The planned gravity
survey will comprise of approximately 600 stations, covering an
area of 12 sq km. The 3C UAV magnetic survey will cover the same
area. Haapovaara is located immediately along strike, to the NE, of
the Kylylahti Mine which was operated by Boilden (NASDAQ OMX
Stockholm: BOL). Kylylahti has a resource of 8.9 million tonnes
('Mt') grading 1.3% Cu, 0.24% Co, 0.23% Ni, 0.34% Zn and 0.78 g/t
Au ( Geological Survey of Finland, 2022 ). The Kylylahti Mine was
closed in late 2020.
Both the Kylylahti deposit and Bluejay's Haapovaara target are
coincident with two gravity highs in existing regional gravity
data. Whilst the two gravity highs over Haapovaara are weaker, this
likely reflects a difference the thickness of the overlying
overburden as the area is covered by glacial till. Despite its
proximity to the Kylylahti Mine, the Haapovaara gravity anomaly has
never been drill tested. Bluejay intends to refine the target
through the planned geophysical surveys, ahead of a maiden drill
programme.
Figure 11. Outokumpu Cu-Zn-Ni-Co-Ag-Au Project permit areas, as
of July 2023 .
Figure 12. Map of the Haapovaara area, in the northern part of
the Outokumpu Belt, showing the extent of the planned ground
gravity (blue polygon) and 3C UAV magnetic (black polygon) surveys.
Background image is regional gravity. The recently operating
Kylylahti Mine (operated by Boilden and closed in late 2020) is a
marked gravity anomaly. Two weaker gravity anomalies are located
along trend from the mine, within Bluejay's licence areas. The
weaker gravity anomalies in this area are considered to reflect the
deeper overburden depths at Haapovaara relative to Kylylahti which
mask the gravity response, resulting in more subtle anomalies.
About the Outokumpu Cu-Zn-Ni-Co-Ag-Au Project
Bluejay, through its subsidiary, FinnAust, is the largest
licence holder on the over 40 km long Outokumpu Belt. Earlier this
year, Bluejay further increased its licence area (see Bluejay press
release dated: 16 January 2023 ), and now holds a total licence
area of 8,064 hectares, comprising 12 exploration permits, permit
applications and reservations along the Outokumpu Belt (Figure 11).
The Outokumpu Belt is a highly prospective metallogenic belt; three
former mines, Keretti, Vuonos and Kylylahti, have produced a total
of approximately 39 Mt of ore at an average grade of 3.3% copper,
1.1% zinc, 0.22% cobalt, 0.14% nickel and 0.71 g/t gold between
1914 and 2020. The mines, especially Keretti, also produced a
significant amount of silver. The known Outokumpu-type sulphide
deposits have been previously found structurally on the culmination
parts of the belt. Deeper parts of the belt are generally
unexplored. Large tracts of untested prospective lithologies occur
at depth along strike from the former mines as well as following
the mineralised trend. In addition, some shallow targets remain
untested by drilling despite their proximity to a recently
producing mine, e.g., the Haapovaara targets.
The metal basket that the unique Outokumpu-type ore provides is
a compelling exploration target in the context of increasing demand
for base metals related to the battery industrial ecosystems,
electrification and the green transition including copper, cobalt,
and nickel. Cobalt grades present at Outokumpu underscore the
importance of the Outokumpu Belt as a secure and sustainable
domestic supply of cobalt for European markets.
Black Schist Projects:
Update on the divestment of projects to Metals One plc
In July 2021, Bluejay announced that it had signed a binding
term sheet and entered into a conditional agreement for the sale of
its Paltamo and Rautavaara Ni-Zn-Cu-Co projects (collectively known
as 'Black Shales Projects') to Metals One plc ('Metals One') for a
combination of cash and shares.
Metals One is advancing a suite of battery metal projects at
brownfields sites in Finland and Norway. The consideration for the
divestment has recently been increased to GBP4.125 million to
reflect a deferred long stop date for the closure of the
transaction. Metals One is progressing its listing on the
Alternative Investment Market ('AIM') of the London Stock Exchange,
after which Bluejay Mining will be able to reflect this divestment
on its balance sheet. On completion, Bluejay shall receive
GBP150,000 in cash, as well as the issue and allotment of
62,500,000 Ordinary Shares at the IPO price, which equates to a
total of GBP3,125,000. Bluejay shall also receive the further issue
and allotment of additional Ordinary Shares at the IPO price
equating to a total of GBP1,000,000 at any time following the
completion, along with warrants over 7,500,000 Ordinary Shares,
exercisable for a period of five years from Metals One's admission
to the AIM.
Upon listing, Bluejay's COO, Thomas Levin, will be appointed as
Non-Executive Director to the board of Metals One. Bluejay will
also support Metals One with the execution of initial exploration
programmes on the Black Shales Project and will receive a 10%
management fee for these services.
The expected first day of trading of Metals One on the AIM is 27
July 2023 . Following admission to the AIM, Bluejay are expected to
hold 29.01% of the issued share capital in Metals One. The proposed
transaction with Metals One is subject to formal agreement and
completion of the outstanding conditions announced on 28 July 2021
. Shareholders should note that there is no guarantee that the
proposed transaction with Metals One will be completed or that
Bluejay will receive any further consideration in respect of Metals
One.
About the (Paltamo and Rautavaara) Black Schist Projects
The Black Schist projects, currently held by FinnAust Mining
Northern Oy, are located in the Kainuu (Paltamo) and Northern
Savonia (Rautavaara) regions of eastern Finland within the
north-south trending Kainuu Schist Belt. The belt also hosts the
giant Talvivaara Mine operated by state-owned, Terrafame Ltd .
Talvivaara is the largest operating nickel mine in Europe.
Mineralisation within Bluejay's Black Schist projects is considered
comparable to the Talvivaara black schist-hosted
nickel-zinc-copper-cobalt deposits, with further untested potential
for Outokumpu-style copper-cobalt-zinc-nickel massive sulphide
deposits analogous to the mineralisation found within Bluejay's
Outokumpu Project.
The Black Schists projects have demonstrated exploration
potential with significant mineralisation already identified at
both R1 at Rautavaara and P5 at Paltamo. An inferred Mineral
Resource estimate of 28.1 Mt at a grade of 0.19% Ni, 0.10% Cu,
0.01% Co and 0.38% Zn has been estimated at the Rautavaara R1
Project. An Exploration Target of 16-24 Mt containing 0.18-0.27%
Ni, 0.09-0.13% Cu, 0.01-0.02% Co and 0.33-0.50% Zn has been
estimated at the Paltamo P5 Project. Both the MRE and the
Exploration Target are defined according to the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore
Reserves ('the JORC Code'). Past drilling by FinnAust has been
primarily focused on these two targets and has left much of the
project areas untested for Talvivaara-style mineralisation.
Comments on Nearby and Adjacent Properties
The historic mines and deposits discussed in this news release
provide context for Bluejay's portfolio of exploration projects in
Finland, which occur in similar geologic settings, but this is not
necessarily indicative that the projects host similar quantities,
grades, or styles of mineralisation.
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:
Kevin Sheil Bluejay Mining plc enquiry@bluejaymining.com
---------------------------- --------------------------
SP Angel Corporate Finance
LLP
Ewan Leggat / Adam (Nominated Adviser and
Cowl Broker) +44 (0) 20 3470 0470
---------------------------- --------------------------
Tim Blythe / Megan BlytheRay
Ray (Media Contact) +44 (0) 20 7138 3205
---------------------------- --------------------------
About 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.
The Company holds multiple exploration and development projects in
Greenland and Finland, providing its shareholders both portfolio
and commodity diversification in high quality jurisdictions.
Bluejay's Dundas Ilmenite Project in northwest Greenland is
fully permitted and undergoing further optimisation studies. The
Company has agreed a Master Distribution Agreement with a major
Asian conglomerate for up-to 340k tonnes per annum ('tpa') of its
designed 440ktpa annual output.
Bluejay, through its wholly owned subsidiary Disko Exploration
Ltd., has signed a definitive Joint Venture Agreement with KoBold
Metals to guide exploration for new deposits rich in the critical
materials required for the green energy transition and electric
vehicles (The Disko-Nuussuaq nickel-copper-cobalt-PGE Project).
Disko Exploration Ltd holds two additional projects in Greenland -
the 692 sq km Kangerluarsuk zinc-lead- silver Project, where
historical work has recovered grades of up to 45.4% zinc, 12.4%
lead and 596 g/t silver; and the 920 sq km Thunderstone Project
which has the potential to host base metal and gold deposits.
In Finland, Bluejay currently holds three large scale
multi-metal projects through its wholly owned subsidiary FinnAust
Mining Finland Oy. The Company has identified multiple drill ready
targets at the Enonkoski nickel-copper-cobalt Project in East
Finland. Bluejay's drill ready Hammaslahti copper-zinc-gold-silver
Project hosts high-grade VMS mineralisation and extensions of
historical ore lodes have been proven. The drill ready Outokumpu
copper-nickel-cobalt-zinc-gold-silver Project is located in a
prolific geological belt that hosts several high-grade former
mines. Bluejay has also signed a conditional agreement for a
partial divestment in a fourth Finnish project.
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END
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