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Bluebird Battery Metals to Acquire High Grade Cobalt Project in New South Wales Australia

Published: 2018-06-07T12:30:00+00:00
Bluebird Battery Metals to Acquire High Grade Cobalt Project in New South Wales Australia
Bluebird Battery Metals to Acquire High Grade Cobalt Project in New South Wales Australia

Canada NewsWire

VANCOUVER, June 7, 2018 /CNW/ - 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).

Highlights:

Solidifies BlueBird with a 202 sq km strategic property position within the emerging Bungonia Battery Metal Cobalt District.

  • 100% Acquisition of the high grade Sandy Point Cobalt Project:
    • Surface rock chip sampling program yielded 1.75% Co, 0.88% Co, 0.77% Co & 0.75% Co (from 38 rock chips greater than 0.10% cobalt, and averaging 0.35% Co – refer to Table 1), and illustrate potential to discover a high grade, at or near surface cobalt resource.
    • 100% control of a 202 sq km tenement (refer to Figure 2 & 3) with anomalous cobalt grades over a 10 km strike length defining the perimeter of what is believed to be an arcuate Quaternary basin measuring 6 kms x 6 kms (refer to Figure 4), with excellent infrastructure and access.
    • Surface sampling returned high Cobalt grades in what is believed to be Tertiary sandstone remnants along the periphery of the basin, suggesting potential for additional cobalt mineralization in the unexposed sandstones below the shallow Quaternary cover.
    • Past producing cobalt area from the late 1800's to early 1900's, with Cobalt mineralization occuring as flat lying residual mineralization on low hills for hundreds of metres.
    • The selected samples are not necessarily representative of mineralization on the property and no assurances the Company will receive similar results.
  • 100% Acquisition of the Greendale and Reedy Creek Polymetallic Projects (see below).

"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 (CNW Group/Bluebird Battery Metals)

Figure 2: Bungonia Emerging Battery Metal Cobalt, Polymetallic and Gold District (CNW Group/Bluebird Battery Metals)

Figure 3: Sandy Point Cobalt Tenement (CNW Group/Bluebird Battery Metals)

Figure 4: Sandy Point Cobalt Conceptual Model (CNW Group/Bluebird Battery Metals)

"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 (CNW Group/Bluebird Battery Metals)

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):

  • High grade rock chip values to: 5.44% Pb, 0.39% Zn, 0.60% Cu, 6.08g/t Au & 115g/t Ag
  • Eight shallow historic RC holes completed for 592m, targeted gold yet returned significant polymetallic (Pb-Zn-Cu-Ag-Au) drill intercepts, including:
    • 10m @ 7.23% Pb, 0.84% Zn, 0.25% Cu, 48g/t Ag & 0.40g/t Au from 27m.
  • Open at shallow depths and along strike, part of a greater than 1km cumulative strike, high order Zn-Cu-Pb-Au soil geochemical anomaly.
  • Historic shallow RC holes targeted surface gold geochemistry & NOT the high order base-metal geochemical anomalies.
  • The selected samples are not necessarily representative of mineralization on the property and no assurances the Company will receive similar results.

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:

  • Tenement encapsulates polymetallic (Cu-Zn-Pb-Au-Ag) targets consisting of the semi advanced Reedy Creek Mine prospect, Endevour 1 Prospects, and the Kala Gold Prospect.
  • Located in the Lachlan Fold Belt, within the Lachlan Transverse Zone (LTZ) in Central New South Wales, Australia.
  • The LTZ is highly prospective for gold and base metal deposits, and is centrally located half way between the world class Cadia & North Parkes porphyry Au-Cu mines.
  • The shallow polymetallic drill intercepts remain open along strike and at depth.
  • Historic shallow RC holes targeted surface gold geochemistry & NOT the high order base-metal geochemical anomalies.
  • Four shallow diamond holes (less than 200m deep), with two abandoned short of target depths.
    • Significant shallow Cu intercepts require follow-up along strike:
      • 9.5m @ 1.45% Cu from 34.1m, within 33.6m @ 0.83% Cu, 0.13% Pb & 0.34% Zn (DDH-3)
      • 28.3m @ 0.36% Cu, 0.10% Pb & 0.10% Zn from 41.4m (DDH-4)
    • Limited retrospective gold assaying returned:
      • 7m @ 1.17g/t Au (DDH-3)
  • Two zones of drilled polymetallic (Cu-Pb-Zn-Ag-Au) sulphide skarn defined, with an overprinting epithermal A event.
  • Drilled on only one section – wide open along strike and at depth. Interpreted as part of a much larger intrusive related hydrothermal system.
  • There are no assurances the Company will receive similar results.

Please visit the website www.bluebirdbatterymetals.com for additional information, maps and sections related to the Sandy Point, Greendale, and Reedy Creek Polymetallic Project.

LOI Terms

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

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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