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."
"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.
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:
-
- 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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SOURCE Bluebird Battery Metals