Bluejay finalises field programme for Disko

Greenland and Finland-focussed Bluejay Mining announced on Tuesday that it had finalised a field programme designed to refine the Disko Nuussuaq geological model.

The AIM and FSE-traded firm described Disko as a “very large scale” magmatic massive sulphide (MMS) target located on the southwest coast of Greenland.

It said the planned work programme was targeted for completion during the fourth quarter of this year, once fieldwork at the company's Pituffik Titanium Project - also in Greenland - is complete.

Following the successful compilation of all available historical data at Disko, detailed reprocessing and reinterpretation had been completed by Bluejay, which the board said strengthened the company's understanding of the licence area.

Bluejay would now conduct a high-powered, ground based, electromagnetic survey for the purposes of identifying optimum drill site locations for the possibility of drilling during 2018.

Disko demonstrated many characteristics analogous to a flood basalt MMS polymetallic copper, nickel, platinum and cobalt mineralised system, Bluejay explained in its announcement.

Confirming the MMS model was the discovery of a 28 tonne boulder of massive sulphide on the licence areas in 1994 by previous owners Falconbridge.

That boulder, which assayed 7% nickel, 3% copper and 2ppm platinum-group elements (PGE), was now on display in the foyer of the Danish Geological Museum in Copenhagen.

The largest responsive anomaly at Disko was 5.9km long and 1.1km wide, which was similar in scale to the MMS flood basalts of northern Russia that host the giant Norilsk Nickel's Norilsk-Talnakh project, which was currently the largest nickel-copper palladium deposit in the world.

Disko had been studied through multiple campaigns spanning more than three decades with more than $75m invested by previous owners, including Falconbridge, Conminco, Vismand and Avannaa Exploration, all of which continued to advance the geological model, Bluejay claimed.

The company purchased Avannaa Exploration, owner of Disko and the Kangerluarsuk SedEx Lead-Zinc-Silver Project in Greenland, in an all-share transaction from Cairn Energy in January.

Bluejay said it was continuing to evaluate development options that would maximise shareholder value at Disko and Kangerluarsuk.

Pituffik would remain the primary focus for the company, the board assured, however the opportunity to leverage the Pituffik 2017 fieldwork meant “significant cost savings” could be realised on work programmes at Disko in the medium term.

“Whilst the advancement of Pituffik remains our primary focus, Disko undoubtedly offers an extremely attractive development opportunity and the chance to conduct this work to define drill targets during the 2017 season is far too great to miss given our ability to leverage existing activities which allows for significant cost savings,” said Bluejay CEO Roderick McIllree.

“Disko has the potential to rival Norilsk, both in terms of size and grade, and having reworked all available historical data it's a key part of our strategy to execute the ground based EM to define optimum drilling locations.

“Work continues to realise value from the entire portfolio and we look forward to updating shareholders on our progress in due course.”