VANCOUVER, July 10, 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 75% of the
rights, title and interest in the granted exploration licences of a
726 km2 property holding in the Broken Hill Project,
Australia from Impact Minerals Ltd
("Impact") (IPT:ASX) through the acquisition of 75%
of the outstanding share capital of Impact's wholly-owned
subsidiary that holds the exploration licenses.
"We are excited to be able to secure the opportunity to
explore such a world-class district, and the orginal area that
launched BHP Billiton, for battery and other related metals. A
number of priority exploration targets have already been
identified, and our technical team is pleased to be able to work
closely with Impact Minerals, led by respected PhD (Economic
Geology) and CEO, Dr. Mike
Jones," commented Peter A.
Ball Chairman and CEO of Bluebird. "Our collection of
strategic battery metals assets in Australia and Canada establishes a foundation from which
BlueBird can become a leader in the sector. We anticipate a busy
year, as we start to formalize our exploration strategy, and get
boots on the ground to quickly build value for our
shareholders."
Highlights of the Transaction:
- The Broken Hill District, located in New South Wales, is one of the worlds' most
productive base metal camps, with estimated historical
resources of 28 Mt lead, 24 Mt zinc and approximately one billion
ounces of silver produced from the "Line of Lode", at the Broken
Hill Mine, the deposit that established Broken Hill Propriety Ltd.,
(now BHP Billiton) one of the largest mining conglomerates in the
world.
- Large strategic ground holding of 726
km2 proximal to the Broken Hill Mine with
approximately $6 million of
exploration completed on the property to date by Impact and
previous explorers.
- Over 100 km strike extent of highly prospective trends
with the potential for the discovery of large, high grade battery
metal and base metal deposits.
- Identified drill-ready targets with potential for the
discovery of Ni, Co, Cu and Platinum Group Metals (PGM's), as
well as significant Pb-Zn-Ag potential.
- Extensive infrastructure and well established road and rail
access to the prospective properties.
- Indication of significant battery metals and Broken Hill Type
("BHT") base metals targets including:
-
- Ironstone-Hosted Cu-Co-Au Deposits where previous
trenching results of 23 m of 1.5%
Cu with no assays completed for Au and Co.
- Thackaringa-Style Cobalt-bearing Pyrite Deposits
where previous drilling intersected thick widths of extensive
cobalt grades ranging from 0.02% to 0.15%.
- Ultramafic-hosted magmatic PGM-Ni-Cu-Co Deposits,
where previous drilling has outlined significant PGM-Ni-Cu-Co
mineralization e.g. 1.2 m of
283 g/t Pt Eq (0.5% Co, 10.4 g/t Pt, 10.9 g/t Au, 254
g/t Pd, 7.4% Ni, 1.8% Cu, and 19 g/t Ag).
- Broken Hill Type Pb-Zn-Ag Deposits where
historical drilling intersected BHT mineralization over widths of
15 to 19 m at 3.2% to 4.2% Zn
equivalent.
The selected results outlined above are historical and have not
been verified by the Company. There are no assurances that the
results are representative or that the Company will be able to
duplicate the results noted.
"We believe that the Broken Hill District is emerging as
Australia's premier cobalt
exploration belt, a view validated with the recent results reported
by Cobalt Blue Holdings, currently advancing its Thackaringa Cobalt
deposits through feasibility studies. We believe that the Broken
Hill Project demonstrates the potential for similar
mineralization," stated Alf
Stewart, President of Bluebird. "Recent research in
Australia has led to the discovery
that the Broken Hill District sits above a deeply rooted crustal
structure, which allows tapping of material from the Earth's
mantle, and leads to the potential for numourous major targets
hosting multiple styles of mineralization in the District."
Ultramafic-hosted PGM-Cu-Ni Deposits
The project area contains a 40 km belt of mafic-ultramafic
sills, dykes and stocks associated with gossans and fresh outcrops
of high-grade PGM's, Ni, Cu, Co, Au and Ag mineralization).
The Moorkai Intrusive Complex is a nine (9)
km arc of mafic-ultramafic rocks hosting numerous gossan zones that
have returned multi-gram PGM results with elevated Ni and Cu from
surface reconaissance sampling. Historical test pits at the
Platinum Springs prospect, located in the southern portion
of the arc, identified high grade platinum and palladium
mineralization with elevated rare PGM's such as rhodium and iridium
together with elevated nickel and copper grades associated with
massive magmatic sulphide minerlization. (refer to Figure
2). None of the samples from the test pits were
assayed for cobalt.
The selected results presented in Figure 2 are
historical and have not been verified by the Company. There are no
assurances that the results are representative or that the Company
will be able to duplicate the results noted.
Impact has identified four priority exploration targets to
date:
- Red Hill: Drillingby
Impact intersected 1.2 m of
283 g/t Pt Eq (0.5% Co, 10.4 g/t Pt, 10.9 g/t Au, 254 g/t
Pd, 7.4% Ni, 1.8% Cu, and 19 g/t Ag) from 67.3 m in RHD012 in vein hosted sulphide. Further
drilling here may lead to the definition of a shallow resource with
early production potential.
- Platinum Springs: Impact intersected further fresh
massive magmatic sulphide: 0.65 m
of 76.2 g/t Pt Eq (11.5 g/t Pt, 1.4 g/t Au, 25.7 g/t Pd, 7.4% Ni,
7.6% Cu, 44 g/t Ag (no cobalt assays)) from 57.1 m in PSD002 (refer to Photo below –
PSD002).
- Moorkai: Rock samples identified a 9 km strike extent
with selected samples that graded assays 6.8 g/t Pt, 28 g/t Pd,
9% Cu, and 2.6% Ni.
- Little Darling Creek: Historical drilling intersected
4.5 m of 5.0 g/t Pt Eq (0.5% Ni,
0.4% Cu, 2.7 g/t 2PGM) from 40.5
m in DDH3. This has not been followed up.
The selected results presented above are historical and have
not been verified by the Company. There are no assurances that the
results are representative or that the Company will be able to
duplicate the results noted.
Ironstone Hosted Cu-Co-Au Deposits:
Magnetic ironstones that are potential hosts for Cu-Co-Au
mineralization have been identified in the regional airborne
magnetic data. There has been scant previous exploration for this
style of deposit in the Broken Hill area.
Interpretation of the airborne data and regional
geological mapping highlights approximately 100 km of strike length
with the potential to host prospective ironstones within the Broken
Hill properties (refer to Figure 3), including the
Copper King Prospect:
- The Copper King Prospect is a series of historic copper
occurrences and workings located in the east of Impact's properties
(refer to Figure 3).
- Previous work has identified an anomalous Cu-Co-Au trend up to
3.5 km long which is in part defined by variably magnetic ironstone
units.
- This trend was sampled with a focus on identifying potential
copper mineralization, there was limited analyses focused on the
gold and cobalt potential.
- Rock chip samples for cobalt range up to 0.13% Co, but
there are no drill hole assays for cobalt.
- Three trenches dug in 2012 across parts of the trend near old
workings returned selected grades of 23
m of 1.5% Cu and 4 g/t Ag including 1.5 m of 3.2% Cu.
- The shafts and workings were extensively rock chip sampled with
grades of up to 3.3% Cu, 1.2% Pb, 1.2% Zn and 40 g/t Ag;
Assaying was never completed for Cobalt.
The selected results presented above are historical and have
not been verified by the Company. There are no assurances that the
results are representative or that the Company will be able to
duplicate the results noted.
Thackaringa Style Pyrite-Cobalt Deposits
The optioned property has significant potential for large,
Thackaringa style, pyrite-cobalt deposits, similar to the
Thackaringa Cobalt deposits (Pyrite Hill, Big Hill and Railway
deposits) of Cobalt Blue Holdings Ltd. (ASX: COB), now being
considered for development (refer to Figure 3). The
Himalaya Formation, within the Thackaringa Group hosts the Pyrite
Hill, Big Hill and Railway deposits. The Himalaya Formation is
interpreted to extend for over 100 km of strike throughout the
optioned property (refer to Figure 3).
A high priority area, where extensive cobalt mineralization has
been intersected in previous drill holes, is the Pine Creek
Prospect:
- The Pine Creek Prospect is located 10 km west of Broken Hill
and occurs in the same rocks that host the Thackaringa deposits
some 30 km to the south (refer to Figure 3
above).
- Exploration in the 1980's identified two north-south trending
units of felsic gneiss with extensive disseminated pyrite.
- Two drill holes targeting the western gneiss unit, intersected
extensive pyrite (5-20%) with cobalt grades ranging from 0.02%
to 0.15% Co.
-
- The assays returned: 92 m of
0.04% Co from 50 m in PC6 (true
thickness of about 45 m; refer
to Figure 4).
The results presented above are historical and have not been
verified by the Company. There are no assurances that the results
are representative or that the Company will be able to duplicate
the results noted.
Broken Hill Type PB-Zn-Ag Deposits ("BHT")
The Broken Hill "Line of Lode", is one of the worlds' largest
silver-lead-zinc deposits.
Dora East Prospect
- Impact drilled three diamond drill holes at the Dora East
prospect in 2015 along strike to known silver-lead-zinc workings at
surface known as the Dora mines.
- Follow up drilling targeted a conductor about 250 m southwest along strike (refer to
Figure 5).
- These drill holes intersected BHT mineralization over widths of
15 to 19 m including narrow
intercepts of very high grade zinc and silver in drill hole RHD 018
(refer to Photo below - Massive sulphide from RHD018 at Dora
East).
- The mineralisation is open at depth and along strike and is a
priority area for follow up drilling.
The results presented above are historical and have not been
verified by the Company. There are no assurances that the results
are representative or that the Company will be able to duplicate
the results noted.
Please visit the website
www.bluebirdbatterymetals.com for additional
information, maps, sections, and assay tables related to the Broken
Hill Battery Metals Project.
The technical content of this news release has been reviewed and
approved 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 Broken Hill Project, 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.
LOI Terms
Under the terms of the LOI, which will be formalized by a
definitive agreement among the parties, the Company will purchase
75% of the Broken Hill District by the acquisition of a 75%
interest in the share capital of Impact's wholly-owned subsidiary
that holds the exploration licenses. The LOI contemplates
that the Company will pay Impact CAD$125,000 cash and issue 5.25 million common
shares, subject to TSX Venture Exchange approval. The LOI also
provides for the issue of CAD$500,000
worth of common shares, and obligates the Company to complete
CAD$2.25M of exploration expenditures
over a three year period. The definitive agreement will also
contemplate the issue of up to 1,050,000 common shares six months
after the definitive agreement (subject to various reductions in
number of shares issued depending on the trading price of the
Company's shares).
This transaction is subject to the acceptance of the TSX Venture
Exchange.
A finder's fee will be paid to COMVERJ Pty Ltd in respect of the
transaction pursuant to the policies of the Exchange.
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 advancing its portfolio
of battery metals focused assets in Western Australia and New South Wales, Australia, and in the
Yukon, Canada, and is currently
reviewing 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 Impact, exploring its properties in Australia or the Yukon, 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
