Bluebird Battery Metals to Acquire High Grade Cobalt Project in New South Wales Australia
200 Burrard Street, Suite 1680
Vancouver, British Columbia, V6C 3L6
Tel: (604) 678-5308
www.bluebirdbatterymetals.com
Bluebird Battery Metals to Acquire High Grade Cobalt Project
in New South Wales Australia
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).
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:
o 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.
o 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.
o 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.
o 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.
o 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
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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
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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.
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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
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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:
o 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.
o 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)
o 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
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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 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 [email protected].
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.