SP Angel 15th January BUY - Valuation 37.7p15 Jan 2021 14:57
SP Angel 15th January
Company News
Bluejay Mining* (LON:JAY) 12.27p, Mkt cap £119m – Bluejay agrees jv with Rio Tinto over the Enonkoski Project in Finland
BUY - Valuation 37.7p
Bluejay Mining report the confirmation of their joint venture agreement with Rio Tinto over their Enonkoski Project in Finland
Fieldwork has now started at the Enonkoski nickel-copper-cobalt-PGE project with the relogging and reassaying of historical diamond drill cores at the Geological Survey of Finland's core archive.
The field team have started ground magnetic surveys in two of the near-mine areas at Tevanjoki and Laukunsuo
The Enonkoski area hosts two historical nickel, copper, cobalt mines which were worked in 1980s and early 1990s.
We expect the new ground and airborne geophysical surveys to highlight further mineralisation along strike of the old Enonkoski mines.
FinnAust drilled <1.5km southeast of the closed Enonkoski underground mine intersecting nickel and copper mineralisation near surface highlighting the lack of exploration done before the mines were closed.
Enonkoski is an old polymetallic mine, developed by Outokumpu and run till low metals prices and rising mining costs forced its closure.
The Enonkoski mine previously produced 6.7mt of ore grading 0.8% nickel and forms a key part of the Enonkoski nickel belt in Finland with 15km of strike along from the Enonkoski and Hälvälä mines.
Previous drilling showed 32.90m grading 4.09% Nickel, 0.56% Copper, 0.17% Cobalt and 19.70m grading 6.12% Nickel, 1.94% Copper, 0.29% Cobalt highlighting concentrations of high-grade material within the larger orebodies.
We believe the Enonkoski orebodies are made up of large remobilised VMS deposits resulting in a chain of separated metals along a decent strike length.
Under the agreement Rio Tinto may acquire up to a 75% of Enonkoski through $20m of expenditure on the property.
Stage One – allows Rio Tinto to gain a 51% stake in the old mine by spending US$5m over three years with $0.4m to be spent by 30 March 2021
Stage Two – gives 65% ownership for another $5m of expenditure by November 2025
Stage Three – allows Rio Tinto to take 75% for a further $10m by November 2029
Beyond Stage Three, each party shall fund its respective 75%:25% share of project expenditure or be diluted
Hammaslahti: Bluejay is also drilling at the Hammaslahti copper-zinc-gold-silver project in Finland close to historic mine workings.
The team have planned >4,000m of drilling at Hammaslahti targeting areas close to the mine to find potential repeating structures.
Bluejay also holds some 5,000ha of licenses around and along strike from the historic Outokumpu copper-cobalt-gold-silver mine.
*SP Angel act Nomad and broker to Bluejay. The analyst has previously visited the Enonkoski mine site in Finland