Blue Jay Gold (JAY.V) has lined up Ocean Partners as a buyer for stockpiled rock (the ‘remediation material’) at its Steller Gold Project, south of Whitehorse in the Yukon Territory. Ocean Partners is a UK-based firm that trades metal concentrates. The rock was piled up on the surface by an earlier operator during underground work at the Skukum Creek site, and clearing it is part of the company’s cleanup obligations while generating capital in the process.
The material will be hauled by road to Skagway, Alaska, where it gets loaded onto ships. Ocean Partners pays based on the grade of the material, putting down 90% of the estimated value soon after loading and settling the rest once final weights and assays are in. From Skagway, we expect the material will be shipped to Taiwan, where Ocean Partners recently completed the construction of a large warehouse and blending facility. That also explains why Ocean Partners has recently been very active in mining and development projects located near the US and Canadian West Coast.
Having Ocean Partners as potential offtaker for high-grade material creates a potential new path forward for Blue Jay Gold, as the company is now evaluating developing Steller as a DSO operation, a bit like Scottie Resources (SCOT.V) is contemplating in British Columbia. If the potential for a DSO operation could be confirmed, there could be substantial capex savings as the rock would not be treated on-site. That could be a very interesting path forward for the project, and we are looking forward to seeing the results of that Preliminary Economic Assessment.
It also looks like Ocean Partners may be a long-term partner for the Blue Jay Gold, as the concentrate trader will invest C$3M in Blue Jay Gold in a placement priced at C$0.90 per unit. The 3.33M units that will be issued (the placement hasn’t closed yet) will consist of one common share and a full warrant with an exercise price of C$1.20, valid for one year. The expiry of these warrants can be accelerated if the shares trade above C$1.25 on a 5 day VWAP basis. If exercised, these 3.33M warrants would bring in an additional C$4M in cash.
Blue Jay Gold is taking all the right steps. The remediation material can be monetized (details will become clear in 2027) while the offtake partner is committing to invest C$3M in Blue Jay’s capital. More drill results will be released soon, and the next few months will be full of catalysts, culminating in a Preliminary Economic Assessment in the first half of 2027.
Disclosure: The author has a long position in Blue Jay Gold and may add to this position within the next 72 hours. Blue Jay is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
