Member Info for A-s-h-t-o-n

Https://tinyurl.com/5r76a2su

PS: JAY owns 29.98% of Metals One (62,500,000 shares).

"She (KoBold Metals Zambia CEO Mfikeyi Makayi) wouldn't say if KoBold would partner with BHP and Rio Tinto to develop Mingomba." - https://tinyurl.com/yc4zb86d

When you come to study the presentation material you will find that BHP stands out prominently among the companies engaged in corporate activity in nickel projects (page 25). I have repeatedly said here my top pick for Disko is BHP but only an unwise observer would rule out either Anglo American or Rio Tinto - https://tinyurl.com/364f659r

I should have mentioned that Anglo American's three fieldwork licences FELT 2023-104; FELT 2023-105; and FELT 2023-106 started on 27 May 2023 and expired on 15 September 2023. I will therefore assume AA has completed its fieldwork at Disko.

Grubbber - Here is my comment on Anglo American as promised.

Canada Nickel is advancing a high-quality, high-potential nickel-cobalt project known as the Crawford Project in Ontario. On page 12 of the project presentation document dated April 2023, you will see Crawford ranked as No.5. But the No.1 spot is occupied by the Norilsk mine in Siberia. Norilsk mine should be familiar to JAY shareholders because it has been referred to by the company in several of its Disko RNS releases including the very latest one. - https://tinyurl.com/364f659r

In March 2023, Anglo American acquired 9.9% of Canada Nickel. The press release from Anglo American says: "The investment is part of Anglo American’s approach to expanding its nickel product offering with additional battery-grade nickel for use in electric vehicles, complementing nickel production from Anglo American’s PGMs mines in South Africa, as well as ferronickel from its nickel assets in Brazil which is mostly destined for the global stainless-steel industry. Anglo American’s equity funding will support Canada Nickel’s work to complete the necessary permitting requirements to proceed with the development of the project."

What I find interesting about this acquisition is: (a) AA not only becomes a 9.9% shareholder of Canada Nickel but it also acquires the exclusive right to purchase up to 10% of recoveries of the nickel concentrate. (b) The Crawford project is neither fully permitted nor developed for production yet (c) Drilling was completed during 2021 and early 2022 but assays were pending in April 2023 (see page 16 of the presentation document). Despite this Anglo American went ahead with the deal in February 2023. This shows that major miners are striking deals on early-stage projects of junior miners in their quest for EV battery metals. Here is the press release from Anglo American. - https://tinyurl.com/2mbkw7t4

You say: "Oh, for a ferocious bidding war between AA and BHP". Given that Rio also has a relationship with KoBold and is hunting for battery metals, will it also be in the frame for Disko? Dream on!

Before a mining company can carry out diamond drilling it will have to obtain what is called a "Field Activity Approval Licence" from the Mineral Resources Authority of the Government of Greenland. Click on this link and see page 17 "Diamond drilling and other drilling operations'' - https://tinyurl.com/2ba8pa2d

Major miner Anglo American (AA) holds three Mineral Exploration Licences covering areas at Disko. These are adjacent to Nikkeli Greenland's licence areas. The three AA licences were issued in 2019 and expire on 31 December 2025. The licences are for Nickel, Copper and PGM (Platinum Group Metals). The areas covered by the licences are: MEL 2019-79: 2,434km²; MEL 2019-80: 4,792km²; MEL 2019-115: 1,671km²; Total 8,897km². In comparison, Nikkeli's licence area is considerably smaller at 3,019 km² (including the 116 km² mentioned in the recent RNS). An interesting recent development is that AA was granted Field Activity Approval Licences to carry fieldwork including diamond drilling this summer (2023) at Disko under these three licences: FELT 2023-104; FELT 2023-105; and FELT 2023-106 to go with the three Mineral Exploration Licences the company holds. At last, it is good to see AA engaging in fieldwork at Disko after being somewhat dormant. I will try to find out more details about AA's fieldwork. I bet AA has been and is monitoring Nikkeli's progress at Disko. Discovering battery metals including ​PGMs features in AA's strategy. - https://tinyurl.com/34k7gwvv

Will AA be interested in Nikkeli?

PS: The licence ref "FELT" stands for "Feltaktivitet godkendelse" in Danish and in English it means "Field Activity Approval".

IvRoche, You say: "There is a fourth option Kobold and Bluejay prove potential through drilling next season and sell a combined stake to a major miner for further development." I agree, KoBold and JAY will need a major miner at some point in the future if they want to progress Disko to production. I mentioned this under Option 1. The big question ​is at what stage will a major miner be brought in; you suggest after the drilling campaign and proving up the asset in 2024.

Thank you for mentioning the Rio Tinto/Turquoise Hill Resources deal where Rio now holds a direct and majority interest of 66% in the Oyu Tolgoi copper project - https://tinyurl.com/mmrmc7vr

KoBold and Rio are exploring for copper, nickel, cobalt and lithium in the Pine River and Crystal Lake area of the Municipality of Neebing, Ontario, Canada. So there is already a commercial relationship between Rio and KoBold - https://tinyurl.com/9rf64chm

~~~

Grubber, ​You say: "There is a (perhaps remote) fifth option: that a big miner or a venture capitalist has now become sufficiently confident in the potential of Disko to buy Bluejay now and so steal a march on those who would rather wait until that potential is confirmed beyond any doubt." Anything is possible. I will post a note later on the major miner Anglo American which recently took on a stake in an early-stage mining project where the project is neither fully permitted nor developed for production yet. As you will already know, AA has Mineral Exploration Licences covering the Disko area,

What is the third option? I will come to that in a moment.

In addition to others, KoBold is preoccupied with two major projects: (1) The JV flagship Mingomba Cu project in Zambia, the most advanced project in KoBold's portfolio (2) The 100% owned Raglan District Ni-Cu-Co-PGE Cape Smith Belt project in subarctic Quebec. This is the project Josh Goldman (CEO, KoBold) talked about at some length in the interview I shared with you all a few days ago. If you missed the interview, use the link below. The total area of the Quebec asset at 724 sq-km is a lot smaller than Disko's 3,019 sq-km (including the 116 sq-km mentioned in the RNS). However, the big plus about the Quebec asset is it sits south of Glencore's nickel mine.

​Since KoBold​ is ​​preoccupied with the two major projects mentioned above plus other numerous projects, their staffing resources could be stretched (geologists, data scientists, field operators, etc.). Given this scenario, I will now turn to my third option. The first thing to be said is that KoBold must ​by now ​be satisfied, beyond ​any reasonable doubt, that Disko ​is a district-scale battery metals ​asset and ​therefore presents a bigger opportunity than their 100% owned ​but smaller Quebec asset (Quebec asset 724 sq-km, Disko 3,019 sq-km.) So, the third option ​for KoBold ​is to make an offer to buy the remaining 49% share of Nikkeli Greenland A/S owned by Bluejay so that ​it can have sole ownership and control of such an immensely valuable asset and then progress the project at ​its own pace with a major miner like BHP with whom ​KoBold already ​has a close working relationship. KoBold is currently assisting BHP with a nickel project in Western Australia and BHP is an investor of KoBold. Having said all that, I would not like to see JAY parting with Disko when it is such a highly valuable asset unless the offer price from KoBold is so temptingly enormous, but even then!

The RNS says Nikkeli's licences are considered to cover the most favourable region to host economic magmatic sulphide mineralisation. Anyone who thinks KoBold would simply walk away from their 51% majority ownership and control of Nikkeli Greenland A/S ​(and the Disko licences) for nothing in return is failing to look at the situation holistically. The commercial benefit for KoBold from owning Nikkeli Greenland A/S outright could be enormous. To sum up, for the reasons I have presented here, I rest my case that KoBold would exercise one of the three options I have identified. Moreover, Option 3 is the ​ONLY one that would provide KoBold with the opportunity to postpone drilling in 2024 and ​still NOT lose majority ownership and control of Nikkeli Greenland A/S (and the Disko licences) by becoming 100% owner of the asset​. If you think there is a hole in my logic, let’s discuss it.

https://tinyurl.com/2ytbsbyr

KoBold Metals’ findings released in the RNS on 21 September 2023 can be summarised as providing the following benefits to the JV:

1. An increase in the ability to evaluate with greater confidence targets previously identified from commercial and research work (According to the RNS, it is estimated that the multi-decade data acquisition and field work to date at Disko represented up to US$50 million of historical expenditure within Nikkeli Greenland A/S' licence areas).

2. New targets and areas of interest identified.

3. An increase in confidence in several drill targets.

4. An increase in the JV's ability to rank the targets for the drilling campaign.

5. In overall terms, the findings have reinforced the already held belief that Disko could prove to be a district-scale opportunity for battery metals.

With regard to KoBold, the most telling statement in the RNS is: " We acknowledge the desire of our JV partner to access, in its entirety, the district-scale play and the need to rank and prioritise targets ahead of future work." I repeat "...prioritise targets ahead of future work."

The statement does not, however, spell out ‘explicitly’ the future work to be done by whom - by the JV or someone else. KoBold now has two options on how they might wish to proceed with Disk. However, there is also a third option which some people may characterise as a "far-fetched" alternative. The first two options are:

1. Continue exploring Disko, including drilling in 2024, and progress the project until a major miner is required [Disko will need a major miner at some point].

2. Sell off the 51% majority ownership and control of Nikkeli Greenland A/S to a major miner for a lucrative sum of money well before 31 December 2024 and walk away from the project. The major then carries out the drilling campaign next summer (2024) and by doing so retain the all-important majority ownership and control of Nikkeli Greenland A/S (and ​the Disko licences).

Continued.....

He makes some very brief but interesting comments towards the end of the interview about KoBold bringing in partners for achieving production - https://tinyurl.com/2ytbsbyr

Definitely-Yes, You say: "... It is highly unlikely that the Company's board did not have knowledge of this news significantly earlier than was disclosed (just today)." I presume you were referring to the news to do with the revised MRE for Dundas. If so, a careful reading of the Dundas RNS shows that it conveys two pieces of materially significant news: (a) The revised MRE makes Dundas a non-viable project without a partner (b) JAY has therefore decided to examine other options for the project which may include partnership, disposal, or a combination thereof. 

It is highly likely JAY received the revised MRE in late July or early August (see footnote below) but decided to wait until the company had commenced investigating the two alternative options for Dundas before reporting the revised MRE information to the market. In fact, JAY included this statement in the RNS: "The Company has now commenced the process of investigating these alternatives, which may include partnership, disposal, or a combination thereof." I emphasise the words "now commenced".

Do you know for a fact when JAY actually received the revised MRE and when it commenced the process of investigating alternatives for Dundas? What I am trying to say here is, 'yes' go hard on JAY management for wrongdoing if it is justified but this should not be based on conjecture. May I also politely ask you to study the company's publicly released information more carefully. I say this because, during your recently held webinar, you said JAY had decided to de-emphasise the Disko project, only to be corrected by one of the participants that it was not Disko but Dundas that had been de-emphasised. I hope you won't mind me saying that when spearheading a campaign against a company it is even more imperative that you do not misrepresent factual information, even unintentionally, or engage in conjecture.

Footnote: You may have missed the note I posted here on 7 Sep 2023 at 08:34 in which I said: "I know for a fact that on 13 July 2023, JAY was waiting to receive the revised MRE shortly."  Based on this factual information it is possible JAY actually received the revised MRE in July or August but then needed time to study the information including seeking any clarification as required and then for the project team, management and the Board to deliberate and decide how to proceed with Dundas. We really do not know how long this process took.

DUNDAS - This project is as good as dead but may have an afterlife if you believe in reincarnation. ["The Company has now commenced the process of investigating these alternatives, which may include partnership, disposal or a combination thereof. The revised concept and design for Dundas is significant for discussions related to these alternatives."]

DISKO - In addition to already known values in the ground, KoBold have identified new STRONG values in the ground. ["In addition to known targets, the Falcon® Airborne Gravity Gradiometer ('AGG') surveys have identified an additional 9 STRONG gravity (± magnetic) anomalies that may represent previously unrecognised mafic-ultramafic intrusions of comparable size to the host intrusions of many world-class magmatic Ni-Cu sulphide deposits"]

There is some stuff at shallow depths ["A strong early-time SAMSON and HeliSAM electromagnetic ('EM') anomaly, c. 600 x 900 metres ('m') in size has been identified within the Qullissat intrusion at shallow depth. A mid-time HeliSAM EM anomaly has been identified in the Aaffarsuaq Valley at a modelled depth of 400 to 800m."]

In the note I posted on 10 Aug 2023 at 11:23, I said "Although the applicant's name for M-MLSA-337 is yet to be published, I have done some digging (pardon the pun) and believe that the applicant could be Nikkeli Greenland." I am glad this has now been officially confirmed". ["An application for a new Mineral Exploration Licence ('MEL') totalling 116.6 square kilometres ('sq-km') has been submitted by Nikkeli to the MLSA, Government of Greenland. The new MEL will provide Nikkeli with a buffer around its existing licences and secures a continuous land position along the drill accessible north coast of Disko Island where the Company has several high-priority drill targets."]

An interesting observation here: Dundas has come out below par, whilst Disko has come out above par. What could be KoBold's next step? Now that they have confirmed that Disko has value in the ground, they have two options: (a) Hold on to their current 51% majority ownership of Disko and cough up $11.6 million for drilling before 31 December 2024 or (b) Sell off the 51% ownership to a major miner for a lucrative sum and walk away. What KoBold will NOT do is do nothing before the end of 2024 and lose its majority ownership of such a valuable asset. They are not that dumb!

FINNISH ASSETS/PARTNERSHIP WITH STRATEGIC INVESTORS - Results of the drilling at Hammaslahti are due out shortly. As for Enonkoski, due diligence is being undertaken by prospective tier-1 partners (major miners) as we speak. We can expect news on this development before the year is out.

I remain hopeful for a sensible/realistic re-rating of the share price when the above announcements come good.

The way I've constructed the question could possibly be interpreted in one of two ways. Expressing regret over investing in JAY or asking the reasons for investing in the company. It is the latter. I'll answer the question in a moment. My personal investment profile is such I really have a moderate attitude to risk. Until recently I had several stocks in my portfolio but I profitably liquidated all of them bar two stocks because I started to become nervous about the market generally (Ukraine war, rising inflation, among others). My portfolio is now reduced to three stocks: Shell, Marks & Spencer & JAY. Given my low tolerance for risk, why did I invest in JAY? The primary reasons are that the company:

1. Controls some of the highly prospective tenements in Greenland, and many of them are adjacent to historic mines (e.g. Kangeluasuk, Thunderstone, Enonkoski, Hammaslaht and Outokumpu).

2. Enjoys exceptionally good relations with the Government of Greenland and local stakeholders (municipalities and local population).

3. Has sovereign investors (Danish and Greenlandic pension funds) and Directors are also investors (in particular, Rod McIllree who was with the company when I became an investor).

4..Potentially, the company could be a takeover target.

Since JAY is a speculative stock, I went in with both my eyes wide open knowing that things could go belly-up. Unfortunately, the share price has declined to the current abysmal sub-1p level mainly because the company has failed:

1. To fulfil the expectations it had raised in progressing projects (production at Dundas, maiden drilling at Disko in 2023 to name a few), despite numerous equity Placements to raise capital.

2. To provide timely and effective communication.

Additionally, the new Chairman's strategic review has raised many expectations and the jury is still out on them. JAY has seven projects but the company is yet to produce a timetable of the key events for project delivery. What are shareholders to make of this absence of information, especially after so many equity Placements to raise capital? Does this mean the Board does not have the necessary confidence to come up with such information? Take a look at slides 9 & 10 of this corporate presentation dated July 2023 by Amaroq Minerals Ltd, Greenland. If Amaroq Minerals can do it, surely JAY too can do it - https://tinyurl.com/5kxjpvck

As a heavily invested shareholder (I hold a LARGE six-figure investment at an average price of just under 9p/share) ), I have the best interest of JAY at heart and want to see the company eventually become a successful and profitable entity. However, for this to happen, the Board will have to ensure that JAY enjoys the trust and confidence of shareholders by fulfilling expectations and also by providing them with timely and effective communication. Otherwise, shareholders will continue to sell up and walk away.

2023/2024 is a make-or-break pivotal period for JAY but I remain hopeful for the company'

Graham10k, You ask: "Do you have any comment on metals one? Is this all settled with regard to JAY being paid?"

I do not know any more than what JAY reported to the market via the RNS on 31 July 2023 (the first day of Metals One's admission to trading on AIM). I wish JAY had written the RNS with better clarity. For example, the fourth bullet point in the RNS is somewhat convoluted - https://tinyurl.com/ymhvxmd2

I very much hope Metals One does well because JAY owns nearly 30% of the company (29.98%). It is encouraging though that on 4 September 2023 Metals One reported to the market that diamond drilling at its Råna Project in Norway has confirmed the presence of high-grade massive sulphide nickel-copper-cobalt mineralisation at Bruvann. Metals One's Råna Project partner is Kingsrose Mining which is listed on the Australian stock exchange. Kingsrose Mining is a 2023 BHP Xplor cohort company, so must be a company of some repute - https://tinyurl.com/3sbex8tc

I am monitoring Metals One's progress as well.

Forgot to include this RNS on 1 February 2022 which makes reference to the missing 12-16 million tonnes of nickel. Please see para 4 under 'Notes' - https://tinyurl.com/yeys268t

KatAmnesia, We all have our own dreams and I have mine. I take it you are familiar with Disko's missing nickel deposit of 12-16 million tonnes (MT) from one of its metal-bearing lava units.

My dream has three stages. First, in the next Disko update due out next month (October 2023) KoBold's findings confirm the potential presence of that missing nickel deposit and also provide ​us with other positive revelations about Disko. Second, the drilling campaign in 2024 to confirm the presence of the missing deposit. Third, to go after the remaining Norilsk-type reserves. If you haven't already, please listen to this 7-minute presentation by Bo Stensgaard on Disko (link below) where he makes reference to the missing nickel deposit and then says one of the priority targets for the drilling campaign would be to try and identify this particular deposit. I would be surprised if the Disko update failed to mention this information. By the way, as we speak, JAY has been and is in ongoing dialogue with KoBold.

I know I must not let my personal optimism stand in the way of objective assessment. However, historical academic and commercial geological evidence ​collected over the past 30 years gives me real hope that KoBold’s update, followed by drilling and assay results at Disko, is likely to provide us with the first real rays of a new dawn for the asset. I truly believe that the year 2024 could prove to be a transformative date for Disko after decades of waiting.

https://tinyurl.com/2p8fpmeu

PS: Since we are talking about dreams, I will post a separate note some time later on what attracted me to invest in JAY.

Graham 10K, You ask; "So i wonder, why is it that progress is so slow if this is on a comparison to norilsk? It seems kobold aren't in any hurry and without them Jay are stranded aren't they?"

I'll take each of your two questions in turn.

You say 'slow' but that may be in the eyes of JAY shareholders. KoBold may not see it that way. One of the most important factors for KoBold is their reputation. In the context of Disko, this means three things:

1. Keep the exploration failure rates to a minimum in order to preserve and enhance the credibility of their AI technology. It is therefore understandable - if you are a neutral observer and not a JAY shareholder - that KoBold's approach to spending the necessary amount of time on Disko's data analysis to get the drill targets absolutely right (as far as possible) and not be rushed into just because JAY is in a hurry to make progress.

2. KoBold would not wish to breach the terms of any agreements they enter into with their partners as this would seriously damage their reputation. As for the Disko JV Agreement, it contains two Stages. As required, KoBold completed Stage I by 2022. Stage II is required to be completed by 2024. If anyone is to be blamed for the perceived slowness I would blame JAY. Why did JAY agree to Stage II being completed by 2024? Why didn't JAY go for 2023? As long as KoBold completes Stage II by 2024, and in accordance with the terms of the JV Agreement, one cannot expect more from KoBold. If they fail to honour Stage II their reputation would suffer damage. I honestly don't think they would let that happen since one of their six values is 'Integrity' - https://www.koboldmetals.com/values/

3. Also, KoBold would not be rushed into determining the drilling targets since Disko has gas pockets and the safety of people is of paramount importance to them since this is also one of KoBold's six values.

Let me now turn to your second question of whether JAY would be stranded without KoBold. Sorry to duck your question. I hope you would not mind waiting for a few more weeks (October 2023) so that I can answer your question authoritatively.

The Disko tenement is often compared with the Norilsk region for its nickel​ presence. "This deposit type typically has grades and tonnages that are intermediate between the komatiite-hosted type (high grade, low tonnage) and the contact-type deposits (low grade, high tonnage). Most of the global nickel production can be accounted for by this type. It includes deposits with the largest total nickel resource, among the magmatic nickel deposits, with giants such as Norilsk and Pechenga (Russia), Jinchuan (China) and Voisey's Bay (Canada). The West Greenland Flood Basalt Province is considered to be an analogue of the Siberian Traps in Russia to which the giant Norilsk nickel deposit is related."- see pages 4, 7,8 and 9 - https://eng.geus.dk/media/13176/go_31.pdf

Prior to joining JAY, from 2013 until 2022 Rob Edwards served as a Non-Executive Director of MMC Norilsk Nickel, the world's largest producer of nickel and palladium - https://nornickel.com/company/about/

The RNS on 10 October 2022 contained this comment from Kurt House, CEO of KoBold Metals: "Our joint exploration campaign on Disko Island this summer was a significant step forward. We've identified many novel targets and significantly updated our exploration hypotheses. We are looking for what we think could be the most significant nickel and cobalt discoveries in 100 years."

I have always wondered why Kurt House came up with a timeframe of 100 years in his comment; it just can't be an arbitrary time span picked out of thin air. I am almost certain he used the 100-year date bearing in mind the large deposits of rich ore with rare metal grades that were discovered in the Russian arctic Noril'sk region of Siberia. Watch this video from Nornickel and the first date that shows up in the clip is almost 100 years ago in 1924! - https://tinyurl.com/4273ufct

Bluejay has been banging on about the Noril 'sk region in its communication to the market and Dr Peter Lightfoot, Technical Lead of Magmatic Systems at KoBold commented in the RNS on 9 August 2021: "After working on the Noril'sk mineral system and applying the ideas to help Falconbridge with their exploration work, it is exciting to see this work come to fruition."

In the CNN report of August 2022, Kurt House said: "We are looking for a deposit that will be the first- or second-largest most significant nickel and cobalt deposit in the world.”

With these and other upbeat statements, Kurt House has raised KoBold's expectations for Disko.

CNN - August 2021: "We are looking for a discovery that will be one of the largest, most significant nickel and cobalt deposits in the world, potentially capable of powering 100 million EVs.” - Spokesman for KoBold - https://tinyurl.com/ync892bt

RNS 9 August 2021: "KoBold's technology is perfectly suited to discovering new resources at Disko. Our proprietary library of analytical tools, Machine Prospector®, will enable the effective deployment of exploration capital and maximize our chances of discovery at Disko-Nuussuaq. We are excited to invest in Greenland's emerging mineral sector and to partner with Bluejay in light of their strong track record in Greenland and the outstanding potential of the Disko project." - Kurt House, CEO

"The Disko-Nuussuaq Property is centred in a region of extensive contaminated and metal-depleted volcanic centres where there is clear evidence for the equilibration of flood basalt magma with crustal sulfur with potential for the concentration of magmatic sulphides in shallow sub-volcanic intrusions. The rich inventory of government and exploration data provides an excellent starting point for KoBold to utilize proprietary technology to support exploration." - Dr. Peter Lightfoot, Technical Lead of Magmatic Systems at KoBold

RNS - 24 March 2022: "We're proud to partner with Bluejay to begin exploring Disko-Nuussuaq this year. Fully electrifying the global economy is our generation's greatest challenge; to accomplish that lofty goal we must accelerate our efforts to find the key materials for the EV revolution. KoBold's technology is perfectly suited to discovering those resources around the world. Our proprietary library of analytical tools, Machine Prospector®, will enable effective deployment of exploration capital and maximize our chances of discovery in Greenland working in partnership with Bluejay." - Kurt House

April 2022: Excerpts from the "Vanityfair" article: “If we diversify supply, if we find a major cobalt discovery in Greenland, we can guarantee that cobalt is going to be produced under extremely high labor standards, and extremely high environmental standards, and then you have a choice,” House posts. “Apple can then buy its cobalt from us, where it’ll have a really reliable chain of custody, and no corruption issues, and no child labor issues, and minimal environmental impact.” - Kurt House - https://tinyurl.com/y36vbrhu

RNS - 10 October 2022: "Our joint exploration campaign on Disko Island this summer (2022) was a significant step forward. We've identified many novel targets and significantly updated our exploration hypotheses. We are looking for what we think could be the most significant nickel and cobalt discoveries in 100 years." - Kurt House

Can't wait to see what KoBold have to say in the Disko update next month.