Vancouver, British Columbia, June 07, 2018 – Bluebird Battery Metals Inc. (TSXV: BATT; US:BBBMF) (the “Company” or “Bluebird”) is pleased to announce that it has entered into a binding letter of intent ("LOI") to acquire 100% of Oberon Gold Pty. Ltd. (“Oberon”), an Australian proprietary limited exploration company, from Providence Gold and Minerals Pty Ltd, Darren Craig Glover and Benjamin Leigh Harper (the “Owners”). Oberon controls 100% the high-grade Sandy Point Cobalt Project (“Sandy Point”), which includes the Greendale Polymetallic Project (“Greendale”), and 100% of the Reedy Creek Polymetallic Project (“Reedy Creek”). All projects are located in New South Wales, Australia (refer to Figure 1).
Solidifies BlueBird with a 202 sq km strategic property position within the emerging Bungonia Battery Metal Cobalt District.
“We are very pleased to be able to secure a strategic and large property portfolio in the Bungonia Cobalt District in New South Wales, Australia, that has yielded very high grade Cobalt grades at surface. The Sandy Point Cobalt Project provides significant exploration potential, noting the historical results identified to-date and the location to other key Cobalt projects in the area,” commented Peter A. Ball., Chairman and CEO of Bluebird. “With minimal dilution, we were able to substantially increase our Cobalt property portfolio in Australia, and also add the two highly prospective Greendale and Reedy Creek polymetallic projects, that has yielded positive copper, zinc, lead and gold grades near surface. BlueBird continues to review other battery metals opportunities to add to our portfolio.”
Fig 1: Location: New South Wales
Figure 2: Bungonia Emerging Battery Metal Cobalt, Polymetallic and Gold District
Figure 3: Sandy Point Cobalt Tenement
Figure 4: Sandy Point Cobalt Conceptual Model
“We are excited to acquire a property which contains high cobalt values in a near surface environment with no associated arsenic or other deleterious elements that often occur with cobalt. The property is located in New South Wales Australia in an area in which exploration can occur year round and development can be fast tracked,” commented Alf Stewart, President and Director of Bluebird.
Sandy Point Cobalt Project
Cobalt was produced in the region from the late 1800’s to early 1900’s, with limited production details. Cobalt mineralization has been observed to occur as flat lying residual deposits on low hills extending for hundreds of metres laterally. In addition, extensive Tertiary laterite profile is confirmed by adjacent bauxite drilling, where high grade bauxite is defined. This indicates that the weathering process which produces cobalt and manganese mineralization has been extensively developed. No previous drill testing of cobalt has been conducted to date, but manganese oxide rich mineralization outcrops on the property. Historic metallurgical test work completed by Cazaly Resources Limited (ASX:CAZ) on similar mineralisation immediately north of Sandy Point produced recoveries of: 83.2% Co, 79.5% Cu & 85.9% Ni. There is no indication that mineralization at Sandy Point will yield similar results.
High grade cobalt in rock chip assays have been collected from over a 10 km strike length, including: 1.75% Co, 0.88% Co, 0.77% Co & 0.75% Co., where 38 rock chip samples graded greater than 0.10% Cobalt. Cobalt is associated with manganese oxide rich coarse grained Tertiary sandstone horizons & Manganese oxide rich, quartz stockwork veining in sedimentary basement rocks. References in Figure 2-4 above, and to other companies results, is for information purposes only and there are no assurances that the Company will achieve similar results. The selected samples are not necessarily representative of mineralization on the property and no assurances the Company will receive similar results.
High grade cobalt in rock chips up to 1.75% ‘cluster’ around the arcuate margin of a Quaternary basin associated with ‘remnant’ manganese oxide rich Tertiary sandstone horizons with greater than 10 km cumulative strike. An opportunity exists to conceal and preserve potential significant tonnages of prospective manganese rich Tertiary sandstone hosted cobalt mineralization under shallow Quaternary transported cover.
The high grade cobalt results from surface grab sampling have not been followed up by any drilling to date. The interpreted size of the basin (6.0 x 6.0 kms) and the shallow depth of the Quaternary cover suggest that there may be potential for additional cobalt mineralization over a broad area close to surface. This conceptual model for Sandy Point is supported by favourable results from the adjacent Cazaly Resources’ Bungonia Cobalt Project, featuring similar geology and mineralization to that observed at Sandy Point. There are no assurances the Company will receive similar results to the adjacent property.
Table 1: Sandy Point Cobalt Rock Chip Samples
Greendale Polymetallic Project
Located within the Bungonia Polymetallic and Gold District, the Company also acquired the Greendale Polymetallic Project and other prospects (located within the Sandy Point tenement):
Reedy Creek Polymetallic Project
In addition to Sandy Point and Greendale, the Company has also acquired 100% of the 85 km2 Reedy Creek Polymetallic Project:
Please visit the website www.bluebirdbatterymetals.com for additional information, maps and sections related to the Sandy Point, Greendale, and Reedy Creek Polymetallic Project.
Under the terms of the LOI, which will be formalized by a definitive agreement among the parties, the Company will purchase a 100% ownership interest in Oberon by paying the Owners, over two years, a total of CAD$245,000 and issuing to the Owners CAD$1,175,000 value of BlueBird common shares. BlueBird will grant the Owners a 1% net smelter royalty in respect of the Property on standard industry terms to be agreed between the parties (the "NSR"). The parties agree that BlueBird shall, at all times, retain an exclusive and unlimited right to purchase the NSR back from the Owners by paying the Owners CAD$350,000 for each 50% of the NSR it wishes to buy back. The definitive agreement must be filed with the TSX Venture Exchange (“Exchange”) and the related share issuances are subject to Exchange approval.
A finder's fee will be paid to COMVERJ Pty Ltd in respect of the transaction pursuant to the policies of the Exchange.
The technical content of this news release has been reviewed and approved by Wes Hanson, P.Geo., a director of the Company and a Qualified Person pursuant to National Instrument 43-101. The qualified person has not yet visited the Sandy Point, Greendale or Reedy Creek Projects, and therefore has not yet verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in the written disclosure.
About Bluebird Battery Metals
BlueBird Battery Metals (TSXV: BATT; US: BBBMF) is a Canadian publicly listed company focused on the global exploration and development of strategic battery metals projects, primarily cobalt and nickel. BlueBird’s goal is to pursue a business model that offers direct and long-term leverage to the price appreciation in nickel and cobalt, two principal materials in EV batteries. The Company plans to become a leader in the battery metals sector, as cobalt is currently in a global supply deficit, has a vulnerable supply chain, and is part of an emerging sector with extraordinary potential. BlueBird is currently advancing its Ni-Co-Cu project in Western Australia, its Co-Cu project in the Yukon, Canada, and is continuing to review new acquisition opportunities to add to the Company’s project portfolio.
On Behalf of the Board of BlueBird Battery Metals Inc.
Peter A. Ball
Chairman and CEO
For more information, please contact 1-855-584-0160 or
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited to the Company acquiring an interest in properties controlled by Oberon, exploring the Canegrass Ni-Co-Cu Property, the Batt Co-Cu Property and the impact on the Company of these events, including the effect on the share prices. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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