Bluejay Mining announces 'significant' resource increase

The AIM-traded firm said the total mineral resource increased by 15% to 117Mt at 6.1% ilmenite in-situ at a 0% cut-off grade, reported in accordance with the JORC code, following drilling at onshore Iterlak East and Iterlak West

It said the maiden offshore exploration target, also reported in accordance with the JORC code, highlighted the “significant” expansion potential from the offshore deposit at Dundas.

“The resource base at Dundas has always been significant, and this latest increase of 15% in indicated onshore resources to both the east and west of the Iterlak delta resource demonstrates that there is still a lot yet to be realised,” said Bluejay Mining chief executive officer Roderick McIllree.

“The company intends to continue with additional resource progression over the next 12 to 24 months.

“The total tonnage has risen to a total of 117Mt at 6.1% ilmenite on the raised beaches of Dundas, enhancing both the economic potential of the project and the potential life of mine.”

McIllree said “significant” upside was also represented by the publication of the maiden offshore exploration target, explaining that in conjunction with that, the onshore resource upgrade represented “another meaningful step forward” in both the financial and commercial evaluation of the project, with the successful identification of additional saleable material at Dundas.

“Importantly, we anticipate that the inherent advantages of the homogenous and consistent material, high-grade indicated resource, and the coarse-grained and chemical nature of our ilmenite will enhance project economics over the long term.

“Coupled with the fact that this material is now recognised by industry players as being suitable for sulphate pigment, sulphate slag and chloride slag production, the Company is in an extremely favourable position moving forward.”

More generally, Roderick McIllree said the firm was continuing to make “good progress” with the permitting process and the publication of an optimised pre-feasibility study.

He said the board expected to be able to update shareholders on both aspects “shortly”.

The team had also been working with its consulting partners Wood, IHC Robbins, Royal IHC and study managers Quedtech, Keypointe and SRK, in order to continue developing our mine and operational plan, McIllree explained.

“Bluejay has been working closely with world-leading dredging company Royal IHC to produce a dredging study at Dundas' offshore ilmenite deposit, [with] early indications thus far supporting a conceptual low-cost operation.

“Furthermore, environmental baseline studies for the marine deposit have been ongoing and will continue in 2019.

“These studies will provide a very strong base for assessing the environmental impact of an offshore mining operation.”

Upon the announcement of the 2018 onshore exploration results at Dundas, and the upgraded onshore mineral resource, McIllree said the company would be able to shift its land-based exploration activities to some of its other projects in Greenland, while it continued driving the permitting process and offshore exploration at Dundas.

“The offshore exploration target provides upside for the current development of the onshore-focused mining and processing scenario which, following the intended upgrading of the exploration target to mineral resource, will be assessed in the PFS for Dundas.

“These are exciting times and the company looks forward to updating shareholders regarding all other activities in due course.”