Bluejay launches exploration campaign at Outokumpu

13th Aug 2024 12:29

(Sharecast News) - Bluejay Mining announced the launch of its inaugural exploration campaign focused on identifying significant deposits of geological hydrogen and helium in the Outokumpu Belt in Finland on Tuesday.

The AIM-traded firm said the initiative was a crucial part of its strategy to assess and potentially exploit the region's industrial gas reserves, following promising historical data.

It said the Outokumpu Belt had already shown substantial potential, with previous deep drilling by the Geological Survey of Finland (GTK) revealing significant concentrations of helium and hydrogen.

Notably, one intersection recorded 100 metres at 5.6% helium within a broader 1,500-metre intercept at 1.5% helium.

Additionally, gas samples from a 2,480-metre-deep drill hole indicated up to 46% geological hydrogen, underscoring the belt's potential as a source of valuable industrial gases.

The geology of the Outokumpu Belt shares similarities with the Lorraine region in France, which hosts the world's largest known deposit of white hydrogen, further highlighting the region's promise.

Bluejay said its exploration programme would involve a comprehensive series of activities designed to evaluate the presence and concentration of these gases.

Surface sampling would be conducted using portable detectors to measure hydrogen and helium levels, which will also help assess the condition of historical drill holes for further sampling.

Water samples would be collected from deep boreholes to establish baseline concentrations of these gases, providing crucial data for future exploration.

The company said it would also perform flow meter testing to measure groundwater flow rates, which could help identify gas-rich zones.

In addition, pumping tests would be carried out to understand the hydrogeological structures and flow characteristics, essential for estimating the volume of recoverable gas.

Further, packer testing would isolate specific borehole sections to measure water flow and rock integrity, identifying permeable zones that may contain hydrogen and helium.

To enhance the understanding of the subsurface conditions, borehole magnetic resonance (BMR) logging would be used to measure formation porosity and water volume, providing detailed geophysical data that will inform and improve hydrogeological models.

The board said the exploration campaign was underpinned by extensive historical data from over 2,000 drill holes in the region, providing a robust foundation for Bluejay to fast-track its gas assessment efforts across its 40-kilometre licence area.

"These encouraging but preliminary indications of helium, hydrogen and industrial gases in the Outokumpu Belt are very encouraging," said managing director Eric Sondergaard.

"They present a significant opportunity for shareholders. We have started dialogue with European groups with regards to progressing future work streams in a manner that is not dilutive to existing shareholders.

"We will update stakeholders accordingly, in the meantime, work program details are currently being devised in close collaboration with local experts and regulators."

Sondergaard said the first pass evaluation of surface expressions of naturally-occurring helium and hydrogen would allow the company to assess the conditions of existing boreholes, and focus further phases of work.

"This encouraging opportunity is made possible by the vast datasets of high-quality historical data the company has absorbed recently and the availability of numerous pre-existing deep drill holes, positioning us to potentially unlock substantial value for our shareholders for minimal cost and no dilution."

At 1156 BST, shares in Bluejay Mining were up 2.51% at 0.36p.

Reporting by Josh White for Sharecast.com.