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

Since we are waiting for the revised MRE for the Dundas project, I thought of sharing this leaflet from the Geological Survey of Denmark and Greenland (GEUS) on the subject.

I expect the MRE will be reported under the Australian JORC code (Joint Ore Resource Committee) or the Pan-European PERC code (Pan-European Reserves and Resources Reporting Committee). Since the 2022 summer drill cores from Dundas were shipped for analysis to Australia, I suspect it will be reported under the JORC code. Regardless, I hope JAY will deliver a strong revised MRE.

https://tinyurl.com/y7xeshxe

Thank you, Grubber, for sharing your thoughts about why the share price is low. I have studied the points you have made and offer these views.

I will start with an assumption that JAY delivers a “commendable” revised MRE for Dundas that accords with industry standards. What I mean by commendable is one that is good enough to be incorporated into the Full Feasibility Study for the project. Without a commendable revised MRE, Dundas would be a dead duck. So I am keenly waiting for the revised MRE, which could be imminent.

JAY already holds the Exploitation Licence for Dundas and if it can deliver a commendable revised MRE then the asset would become an attractive commercial proposition for third parties at the right price.

In my opinion, Dundas is unlikely to remain 100% in-house owned. It will either become a shared asset with a partner or monetised (sold off). Why I think it’s unlikely to remain 100% in-house owned is because JAY will not be able to raise the necessary project finance to progress the project on its own given its precarious state of financial health and no bank would lend money given this to be the case.

Let me quote what Rob Edwards stated in his strategic review: “Our ability to successfully explore and progress projects, together with a suite of tier one partners, is our key strength. I would also add that Bluejay is clearly capable of progressing projects itself, something that I am determined the Company should pursue more confidently in the future. This would be done to retain as much value for Bluejay shareholders, not only through considered exploration success but also through the monetisation of projects on commercially attractive terms, having advanced them to an optimal stage.”

With regard to Dundas, this is what RE stated: “Our aim is to present a cheaper, better and more realisable project.”

In my opinion, Dundas is likely to become a target for monetisation once the project has progressed to an optimal stage.

KOBOLD AND DISKO

In his interview on 30 June 2023, Rob Edwards said “The first year program was very extensive and a large amount of data was gathered (by KoBold) and the assessment period of the data is almost completed.”

Forward wind the video to 4.3mins - https://www.youtube.com/watch?v=_3RKOY9rsLU

RE made the above statement more than a month ago and I am therefore expecting an update soon unless KoBold's findings are wrapped in confidential discussions with a third party (a major miner). After all, KoBold is the controlling owner of Disko with 51% holding. Who can tell?

Okay, that’s the cruel reality for the long-suffering shareholders. But what can be done to stop the share price rot and reverse its misfortunes? Here is my wish list:

1. Provide confirmation of the successful conclusion of current discussions with the two prospective strategic partners - My expected timeline is August/September 2023.

2. Provide confirmation of the revised Mineral Resource Estimate (MRE) for Dundas that is good enough to proceed with the production of an Interim Feasibility Study (IFS) - Bluejay's stated timeline for the MRE is Mid-2023.

3. Provide confirmation of the IFS that is good enough for the production of a Full Feasibility Study (FFS) - Bluejay's stated timeline for the IFS is Autumn 2023.

4. Provide confirmation that the Board has approved the FFS - Bluejay's stated timeline is Mid 2024, at the latest.

5. Provide a flowchart showing the key milestones with dates for achieving commercial production at Dundas. If not, monetise the project - My expected timeline is 2023.

6. Provide an update of KoBold Metals’ final interpretation of the data for Disko with drilling targets - My expected timeline is August 2023.

7. Provide a date for drilling at Disko - My expected timeline is 2023.

8. Provide a date for drilling at Kangerluarsuk - My expected timeline is 2023.

9. Make clear how the value of all three battery metals projects in Finland (Enonkoski, Hammaslahti and Outokumpu) would be realised, starting with a timeline for drilling at these sites (Enonkoski and Outokumpu; Drilling at Hammaslahti is progressing) - My expected timeline is 2023.

10. Monetise the Thunderstone project since it is already deemed a low priority - My expected timeline is 2023/2024.

11. Provide confirmation that Bluejay has more than adequate funds to make significant progress with its key projects without further equity dilution - My expected timeline is 2023. See footnote (b) below.

At the recent General Meeting held on 27 July, Rob Edwards (Executive Chairman) was happy to repeat that he believes that there is considerable value in the company. Despite the relentless fall in the share price, why I am I am still a shareholder is exactly the same reason and I hold this view with unflinching conviction.

Footnotes:

(a) “We have modelled the first production (at Dundas) from 2024, subject to Governmental sign-off of the exploitation and closure plan by the end of 2022, as stipulated in the Exploitation Licence announced December 2020.” – See page 2 - https://tinyurl.com/47uddrk5

Please note, the Exploitation and Closure Plan was signed off in June 2021.

(b) Item 11 can be confirmed when the Interim results are published in September 2023.

Bluejay air is currently one of real malaise and the share price is a dog’s breakfast. So, let me start with the big canvass. Bluejay is a “hope share”. The hope was based mainly on two factors:

1. There would be commercial production at Dundas in 2024 [see footnote (a) below].

2. The company would add intrinsic value by making rapid progress in proving the mineral resources at its tenements, in particular at Dundas, Disko, and Kangerluarsuk.

Neither of the above has come to materialise. That is:

1. Start of commercial production at Dundas is now unlikely to happen before 2026 because the two prerequisites, the Full Feasibility Study and Project Finance have yet to be achieved. In any case, around two seasons are required for mine construction.

2. Confirmation of the resource at Dundas is still awaited with the revised Mineral Resource Estimate expected soon (actually imminent).

3. The previously announced timelines for drilling at Disko and Kangerluarsuk in 2023 have failed to take place and new dates for drilling are yet to be announced.

No wonder the share price is a dog’s breakfast.

30 June 2023

“Disko remains a fantastic opportunity for us. There is nothing that we have seen so far that suggests our original thesis that it is a nickel-cobalt-PGM district of scale. nothing that we have seen so far would alter our view at this stage” - https://www.youtube.com/watch?v=_3RKOY9rsLU

31 July 2023

“Disko has several large nickel sulphide targets within it and we maintain that belief.” - https://www.youtube.com/watch?v=LaJlTy0vfk8

I see a common thread through these two statements. Namely, RE’s sure-footed confidence in Disko’s potential. He says: “Nothing that we have seen so far”. This statement is particularly interesting when you consider the date it was made, namely June 2023. This makes me wonder whether RE’s confidence was based not only on historical exploration data on Disko but also on KoBold’s recent findings. If KoBold’s findings, when officially released, were to contradict RE’s confidence, he would have a big egg on his face. And RE would have known the risk before making such a confident statement, and he still went ahead. What does that tell us?

That said, we will know for sure when Bluejay releases KoBold’s final interpretation of the data for Disko. But when will Bluejay update the market on Disko? I don’t know but I would like to point out here that the RNS on 11 April 2022 said: "Following further evaluation of the work programme, the JV has revised the 2022 programme to double the collection and analysis of modern data for the entire suite of potential targets and BEGIN DIAMOND DRILLING IN 2023. This additional work will allow the JV to determine the best drill targets at Disko."

Since Bluejay has informed the market that drilling at Disko would begin in 2023, the company is required to go back and inform the market if no drilling is to take place in 2023, which it is yet to do. Such an announcement would be consistent with:

a) The RNS announcement on 11 April 2022 which confirmed the cancellation of drilling at Disko in 2022. - https://tinyurl.com/e2hun53a

b) The RNS announcement on 28 June 2023 which confirmed the cancellation of drilling at Kangerluarsuk in 2023. - https://tinyurl.com/yc5svn7r

In my opinion, the Disko update is overdue and I can’t wait to read what KoBold have to say about Disko.

PS: I am not expecting any fieldwork at Disko this year.

This article is a short yet the most comprehensive account of KoBold Metals I have read to date (link below). It's dated February 2023. There is a brief mention of Bluejay's Disko-Nuussuaq (Disko) project. The whole article is worth a read if you are a follower of Bluejay or a shareholder.

When the time is right, I am expecting KoBold to sell off its 51% holding in Nikkeli Greenland A/S to a major miner. My top pick is BHP. In February 2022, KoBold raised US$192.5 million and BHP became one of KoBold's investors. Furthermore, KoBold currently has a joint exploration venture with BHP on a project in Australia. So, there is already a relationship between the two companies.

Nikkeli Greenland A/S

Following Bluejay's JV with KoBold Metals in 2021, Greenland registered Nikkeli Greenland A/S was created in 2022 with a 51% (KoBold): 49% (Bluejay) ownership split. Furthermore, all Disko licences at the time of incorporation were transferred from Bluejay to the new company. Moreover, all new licences will also be shared on the basis of a 51%:49% ownership split (not bad a deal for KoBold).

Board of Nikkeli Greenland

Chairman: Kurt House (CEO and Co-founder, KoBold Metals)

Manager and Board Member: Bo Møller Stensgaard (CEO, Bluejay)

Board Member: Robert Edwards (Executive Chairman, Bluejay)

Board Member: Jeff Jerome Jurinak (Chief Operating Officer, KoBold Metals)

NB: One could say BHP indirectly owns a portion of Nikkeli Greenland A/S by being a shareholder of KoBold.

https://tinyurl.com/yefw74x8

I am glad you listened to the podcast with Kurt House (CEO of KoBold Metals). In case anyone else missed it, KoBold tweeted the podcast on 6 July 2023. It was a half-hour interview. The whole interview is well worth a listen but if you haven't got the time you may wish to listen to where Kurt House talks about KoBold's success rate and how and when the company decides to ditch a project. They use a method called "Falsifying a hypothesis" ((23 mins into the audio) - https://tinyurl.com/2kvh3a6p

The last question (just after 29 mins into the audio and at the end): "If there is one thing you are excited about for the future, what is it?"

Kurt House's reply: "We have made a major copper/cobalt discovery. I think we are on the verge of a major nickel discovery and a major lithium discovery, we will see, fingers crossed.

If things continue apace, there will be a time when there will be a new nickel mine, a new lithium mine, and a new copper mine producing copper, producing lithium, producing nickel, producing cobalt all going into the EV supply chain and I think that could happen within this decade and that will be the moment when we will know our efforts have been worthwhile."

Only Kurt House will know which project he was referring to when he said KoBold is on the verge of a major nickel discovery. However, this is what he said after KoBold completed the summer 2022 fieldwork at Disko:

"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." - https://tinyurl.com/fmxmdrh9

We can only but hope Disko has passed KoBold's "Falsifying a hypothesis" test. Only time will tell. Fingers x!

My apologies. IvRoche, you are absolutely right. The Quebec project is Cobalt, not Nickel as I had inadvertently and incorrectly stated​ - https://tinyurl.com/mrfmx76h

Correction: The statement tells us that one of the two prospective investors is from a Nordic country.

Https://www.youtube.com/watch?v=LaJlTy0vfk8

RNS 28.06.23 - "Discussions are progressing with two well-capitalised prospective investors from the US and Nordic jurisdictions offering complementary technical and financial capabilities to the Company. However, there can be no certainty that any binding agreements will be entered into with these investors."

The statement tells us that one of the two prospective investors is a Nordic country. In his recent video interview (31.07.23), Rob Edwards (Executive Chairman) said it's important that Bluejay tap non-market solutions for capital and to this end the company was talking to mining companies.

1st Strategic Investor

By putting the above two pieces of information together one can conclude that one of the two prospective investors is likely to be a mining company from a Nordic country. If so, who could that be? Below is a list of mining companies from the Nordic jurisdiction and it can be noted that LKAB is the largest of them all. In his post (13.07.23) Definitely-Yes had already picked LKAB as a possible candidate and I have since added further information about the company including the fact that it operated a mine in Greenland (now closed).

So, there is a good chance that the mystery miner could be LKAB. More importantly:

a) What might be the terms if a deal is struck?

b) Which of Bluejay’s projects could be the 'primary' beneficiary of the tie-up? I would not necessarily assume that the target project is Dundas. It could be a different project.

As for the Dundas project, RE says in the interview Bluejay has elected not to spend any money on the project this financial year and has de-emphasized the project in preference to the company's other base-metals projects. What does this mean? Does it mean Bluejay would monetise (sell off) the Dundas project once it has been taken to an optimal stage (after completing the Mineral Resource Estimate, Interim Feasibility Study and Full Feasibility Study)?

2nd Strategic Investor

If the first mystery strategic investor is a mining company with technical capabilities and from a Nordic country, the second mystery investor must be from the US with financial capabilities.

In his interview, RE says Bluejay is strongly of the opinion that it would achieve exploration success in Finland and would continue to attract capital to do that. This raises the question of whether the money Bluejay is hoping to raise from the financial strategic investor would be used primarily on progressing the projects in Finland. It should be noted that Bluejay's all three tenements in Finland contain battery metals.

It should be noted money is already available to progress Kangerluarsuk and no money is needed to progress Disko until 2025 since any spending in 2024 is the responsibility of KoBold Metals, unless they choose to farm out their 51% to a major miner because they are too busy with their copper project in Zambia and the nickel project in Quebec.

https://tinyurl.com/4xmsadjf

https://www.youtube.com/watch?v=

Https://www.youtube.com/watch?v=LaJlTy0vfk8

Https://www.londonstockexchange.com/stock/MET1/metals-one-plc/company-page

The RNS on 28 June 2023 stated:

"Bluejay is also in advanced discussions with two strategic entities with complimentary attributes which we believe will strengthen both the financial and technical capabilities of the business as we progress the Company's portfolio of exploration projects as outlined in the recent Strategic Update."

Does Rob Edwards have to wait until these discussions have come to an end and the market has been informed of their outcome before he can purchase shares? I would say 'Yes' and for this reason:

"The Criminal Justice Act 1993 provides that it is a criminal offence for an individual who has inside information, and has that information as an insider, to deal in securities on the LSE or another regulated market (which includes AIM), or through a professional intermediary. For an offence to be committed, the individual must know that the information is inside information and he/she must have knowingly acquired it from an inside source. There are also offences of encouraging dealing and disclosure by persons who have inside information.

For these purposes, inside information is, broadly speaking, specific or precise unpublished information relating to a particular issuer or particular securities which, if made public, would have a significant effect on the price of any securities. It should be noted that a director who knowingly has inside information about their company, or any other company with which their company has dealings, would be an insider for the purposes of the insider dealing legislation.

The penalty for an offence under the Criminal Justice Act 1993 is an unlimited fine or imprisonment for a maximum of ten years. There are a number of defences, but it should be noted that these are normally restrictively interpreted and the burden of proof lies with the defendant." - End

It is therefore clear that the Board cannot engage in Insider dealing while there is still the possibility of other companies becoming involved in Bluejay's business.

Please click on this link and read Insider dealing - https://tinyurl.com/4bejvn9z

According to the London Stock Exchange website the IPO is scheduled to go ahead on 27 July 2023.

The RNS on 24 July 2023 provided some new and additional details which were not stated in the RNS on 28 July 2021 (links for both RNS below).

Extract from the RNS on 24 July 2023:

"Metals One is advancing a suite of battery metal projects at brownfields sites in Finland and Norway. The consideration for the divestment has recently been increased to £4.125 million to reflect a deferred long stop date for the closure of the transaction. Metals One is progressing its listing on the Alternative Investment Market ('AIM') of the London Stock Exchange, after which Bluejay Mining will be able to reflect this divestment on its balance sheet. On completion, Bluejay shall receive £150,000 in cash, as well as the issue and allotment of 62,500,000 Ordinary Shares at the IPO price, which equates to a total of £3,125,000. Bluejay shall also receive the further issue and allotment of additional Ordinary Shares at the IPO price equating to a total of £1,000,000 at any time following the completion, along with warrants over 7,500,000 Ordinary Shares, exercisable for a period of five years from Metals One's admission to the AIM.

Upon listing, Bluejay's COO, Thomas Levin, will be appointed as Non-Executive Director to the board of Metals One. Bluejay will also support Metals One with the execution of initial exploration programmes on the Black Shales Project and will receive a 10% management fee for these services.

The expected first day of trading of Metals One on the AIM is 27 July 2023. Following admission to the AIM, Bluejay are expected to hold 29.01% of the issued share capital in Metals One. The proposed transaction with Metals One is subject to formal agreement and completion of the outstanding conditions announced on 28 July 2021. Shareholders should note that there is no guarantee that the proposed transaction with Metals One will be completed or that Bluejay will receive any further consideration in respect of Metals One." - End

There were eight conditions that had to be met and these were stated in the RNS on 28 July 2021.

​Please note the IPO price is 5p per share (5p x 62,500,00 shares = £3,125,000) - https://tinyurl.com/mry4a96k

When the IPO has taken place, I suspect we will have a final RNS confirming the definitive position.

RNS 24 July 2023 - https://tinyurl.com/yc57unuz

RNS 28 July 2021 - https://tinyurl.com/4dn9tdvb

This reported drilling blowout has nothing to do with Bluejay because the company has never drilled at Disko, at least not yet.

In the past several companies have explored at Disko including Cominco, Falconbridge, Vismand and Avannaa. Some of them carried out drilling, for example, Falconbridge and Vismand. In the case of Vismand, their attempts to deep drill (>1,000m) in 2007 failed due to technical challenges.

Source: Geological Survey of Denmark and Greenland (GEUS)

In fact, in his video podcast on Disko dated February 2022, Bo Stensgaard (CEO) stated that 30 years of data confirming targets were never drilled properly and such attempts have failed. He then went on to state that Bluejay would learn from the past by bringing in the right equipment, the expertise needed and local knowledge and do it right. Please watch the video from 4 min.

Moreover, I am hoping that KoBold's AI technology would identify not only more promising but also safer targets for drilling, an advantage previous explorers did not enjoy. and if, so this is an important factor that should not be overlooked.

That said, risks with drilling will always be there, and it is a case of mitigating them as far as possible.

https://youtu.be/gggOBrZQE6Q

​

A bit more information about LKAB and Greenland, and also of its acquisition trails:

In 2015, Minelco A/S (formerly Seqi Olivine A/S) and a subsidiary of LKAB Minerals was granted permission to exploit mineral olivine at Seqi in Niaqunngunaq (Fiskefjord) in Southwest Greenland. After initial test work and construction in late 2005 and 2006, production began in the spring of 2007. In late 2009, the mining was stopped due to economic reasons and the mine site closed.  So, LKAB has run a mine in Greenland. The question is will it return to Greenland?

LKAB is also into acquisitions. In 2021 it acquired a majority 75% stake in mine development & services major Bergteamet AB

https://tinyurl.com/2p8ch4h6

https://tinyurl.com/y5rcd3c5

As I have already reported, LKAB acquired Intermag last year - https://tinyurl.com/yf6mtjmv

Talking about acquisitions, Bluejay's JV partner Rio Tinto took a 15% stake in Sovereign Metals shares this week - https://tinyurl.com/yc5anfk3

Will Rob Edwards strike a deal with a major miner?

​In 2015, North American Nickel, with a high-grade Ni-Cu-Co project in Greenland, signed an assignment agreement with Minelco AS, a subsidiary of LKAB Minerals. This enabled the company to move forward with the acquisition from LKAB the Seqi Port on the southwest coast of Greenland - https://tinyurl.com/48bmkzj4

Last year North American Nickel changed its name to Premium Nickel Resources - https://tinyurl.com/2mc2f2fr

LKAB is therefore not new to Greenland. I would be delighted if they acquire Dundas or become part-owners of it. Better still, they acquire the whole of Bluejay or become part-owners of it and make a success of the company. Dream on!

Part II

My comments: Dundas mineral is Ilmenite, the primary ore of titanium, a metal used to make a variety of high-performance alloys. However, most of the ilmenite mined worldwide is used to manufacture titanium dioxide, TiO2, which is used as an important whitening pigment in paints, paper, coatings, and plastics and as a polishing abrasive. So in that sense, either a total acquisition or part-ownership of Dundas would be a good fit for LKAB given the fact LKAB has polymers and coating sectors and is also into critical minerals (4th and 5th links below).

LKAB is strong in its technical skills with experience in exploring, developing and operating mines. The company also has technical skills in efficient drilling systems and manufactures drilling equipment for their own use and also for sale to other customers (6th link below).

LKAB would be a good fit for the partnership for two reasons:

a) It has strong technical skills.

b) Being a well-established and profitable miner, plus the fact that it is wholly owned by the Government of Sweden, I suppose one can expect the company to go into any acquisitions with a long-term view rather than for short-term gains.

Bluejay has already confirmed that the potential investor came with strong technical skills (RNS 28 June 2023).

In his recent video interview (30 June 2023), Rob Edwards said: "Bluejay has to be smarter about who we align ourselves with. So, we have taken a clear strategic decision to advance conversations with one or two key partners who are more strategic in their nature, more long-term in their nature, they are less driven by day-to-day movements in macro events around the world and they are less liquidity constrained. (7th link below - forward wind video to 6 mins)

The two YouTube videos about the company are worth a watch.

Link 1 - Home page - https://tinyurl.com/akdthct5

Link 2 - The largest deposit of Rare Earths discovery video - https://www.youtube.com/watch?v=Uwcv3higeMI

Link 3 - Intermag acquisition - https://tinyurl.com/yf6mtjmv

Link 4 - Paints and Coating Sector - https://tinyurl.com/44jcn9fs

Link 5 - Minerals - https://tinyurl.com/at4vtsrj

Link 6 - Company video - https://youtu.be/ehJysfj9Zck?t=1

Link 7 - Video interview Robert Edwards - https://youtu.be/_3RKOY9rsLU

Wealth Warning: My comments that LKAB could be a good fit for the partnership are just my opinion and not based on any reliable evidence. That said, I am sure you have picked LKAB for good reasons.

Part I

​​Thank you, Definitely-Yes, for sharing your views that the most likely partnership or buyout would be with LKAB. I have looked into LKAB (1st link below) and have come up with this additional information about the company which I hope readers will find useful.

1. LKAB was founded in 1890.

2. It is international and sells sustainable iron ore, minerals and special products in 12 countries.

3. It has two Divisions: a) Iron Ore and b). Special Products. It has grown from a one-mineral company to a multi-mineral company. One of its products is Zircon Silicate (naturally occurring beach sand).

4. It has been mining ore for more than 130 years.

5. Its corporate headquarters is in Luleå and the main production sites are in Kiruna (Kiruna Mine) and Malmberget, close to Gällivare.

6. Kiruna mine is the largest and most modern underground iron ore mine in the world.

7. It was in the news recently for finding Europe’s largest deposit of rare earth metals in the Kiruna area (2nd link below).

8. It has recently acquired “Intermag", a company with a strong niche position in the UK-specialised Magnesia business. LKAB commented that the acquisition would strengthen the company's portfolio of products, particularly in the polymers and coatings sectors (3rd link below).

9. It has an annual profit of over £200 million.