TIDMJAY
RNS Number : 4659I
Bluejay Mining PLC
14 December 2020
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector:
Mining
14 December 2020
Bluejay Mining plc
("Bluejay" or the "Company")
Exploitation Licence Granted at Dundas
Bluejay Mining plc, the AIM and FSE listed, and OCTQB traded,
exploration and development company with projects in Greenland and
Finland, is delighted to announce that it has been informed that
the Exploitation Licence (the "Licence") for the Dundas Ilmenite
Project ("Dundas" or the "Project") will be granted and signed by
the Government of Greenland in a virtual ceremony later today. The
Licence is being granted to Dundas Titanium A/S, Bluejay's 100%
owned subsidiary.
Highlights
-- The Licence will allow Dundas to progress towards
procurement, construction and ilmenite production
o It is valid for an initial period of 30 years and can be
extended if required
o The licence grants Dundas Titanium A/S the rights to the
ilmenite resource
-- The current Pre-Feasibility Study ("PFS") mine life is 11
years and is comprised of an onshore Mineral Reserve of 67 million
tonnes ("Mt") (1.6% TiO2 cut-off grade) within a JORC compliant,
indicated Mineral Resource of 117 Mt
o The remaining onshore indicated Mineral Resource, included
within the Licence, provide possibilities for significant increased
production and/or extended mine life
o There are additional significant shallow marine exploration
targets both within, and adjacent to, the Licence area that could
also add to the mine life
-- The Environmental Impact Assessment ("EIA") and Social Impact
Assessment ("SIA") studies have both been approved as part of the
Licence granting process
-- In conjunction, the Impact Benefit Agreement ("IBA") between
the Municipality of North-West Greenland, the Government of
Greenland and Dundas Titanium A/S has also been signed
-- A long life and sustainable mining operation at Dundas will
bring significant benefits to the local area, including employment,
growth and additional infrastructure developments. Strong
relationships with the local communities are well established, with
training activities already underway in cooperation with
educational institutions in Greenland
-- The Company is actively working to reduce the Capital
Requirements and Operating Expenses determined in the PFS. This
process has/will result in cost savings and alternative solutions
for a leaner and greener operation
-- The award of the Licence allows Bluejay to further progress
financing discussions with existing, and new, interested
parties
Rod McIllree, CEO of Bluejay, commented:
"We are extremely pleased to now have an Exploitation Licence
for Dundas. This marks a major milestone for Bluejay. Having had
our Environmental and Social Impact Assessments approved during the
first quarter of the year, the team, with the help of the
authorities, found a mechanism for holding the successful Public
Consultations meetings during the pandemic, which were finalised in
September. In October, the Navigation Safety Investigation study
was accepted by the Danish Maritime Authority, then reaching
agreement with Greenlandic stakeholders on the IBA, in what was a
rigorous process, is now complete. We are extremely proud of all
the work the team has done to get us to this point and all of the
support we received from the various authorities.
"The extendable 30-year licence allows us to now implement the
initial 440,000 tonnes ilmenite concentrate per annum operation and
we anticipate reaching a commercial agreement very soon with a
large multinational commodities group for Dundas product, allowing
us to move further forward towards production. Additionally, the
Company is currently completing an optimisation study, which should
materially enhance the economics of the Project. The PFS for Dundas
was established on a small portion of the identified mineralisation
and should eventually allow for many decades of mine life to be
added.
"The ilmenite product market is very robust currently with a
clear and strong upward price trend forecast to continue for
several years to come. This tightening of supply and increasing
price forecasts provides a perfect platform to now bring online one
of the world's great deposits of titanium.
"Recently titanium has received strong support from various
governments with its inclusion in the List of Critical Raw
Materials' issued in September by the European Commission and its
inclusion, since 2018, in the US State Department of the Interior
defined list of critical metals for the US. Additionally, the
development of the European Union Action Plan for Critical Raw
Materials from the European Union, which, enabled the establishment
of European Raw Material Alliance (ERMA), where Bluejay is a
founding member, along with the US Presidential Executive Order on
Addressing the Threat to the Domestic Supply Chain from Reliance on
Critical Minerals, demonstrate the potential for significant
ongoing political and financial support in developing a stable and
western source of ilmenite production.
"We would also like to extend a special thanks to the
Governments of Greenland and the Greenlandic authorities for their
continued support throughout the process. We would also like to
acknowledge the strong financial support, in November last year,
from two important Greenlandic and Danish Government backed
financial institutions, Greenland Venture (Greenland Government
investment fund) and Vaekstfonden (the Danish state's investment
fund) as well as SISA the pension fund of Greenland, all of which
clearly demonstrates a strong political desire to grow the
country's mineral resource industry.
"In a period of unprecedented challenges for everyone, the
granting of the Exploitation Licence and all the work completed to
get to this point, marks a successful year for the Company. As we
continue to progress the Dundas Project, it was important to finish
the year strong, and we look forward to starting what will be an
exciting new year, very much on the front foot."
"Jens-Frederik Nielsen, Minister of Industry and Mineral
Resources, Government of Greenland, said:
"We are delighted to be have granted Dundas Titanium A/S the
Exploitation Licence for its Dundas Ilmenite Project and look
forward to the future mining operation at Dundas. The Project is
well-suited to progressing our emerging mining sector in Greenland
to the next level.
"Bluejay Mining Plc has been operating in Greenland for a number
of years now and we have been pleased with the cooperative dialogue
throughout the application process for the Exploitation Licence. We
look forward to having a continued constructive working
relationship with the Company and look forward to the future
benefits that the Dundas Ilmenite Project and Bluejay's future
projects will bring to Greenland."
Palle Jeremiassen, Mayor of Avannaata Kommunia (Municipality of
North-West Greenland), said:
" The Dundas Ilmenite Mine will provide significant benefits to
the local communities as well as the region, in particular creating
growth through employment and additional infrastructure
developments. Bluejay is already in the process of training local
people in order for them to gain the skills required to work at the
Project, indicating that they are committed to providing benefits
to local people.
"Bluejay and Dundas Titanium is well-recognised in the region
with a team of respected, well-known and highly professional
individuals that have been operating in Greenland and North-West
Greenland for several decades. Bluejay is not only actively
developing the Dundas Ilmenite Project, its Disko-Nuussuaq Project
and Kangerluarsuk Project are also both located within the
Municipality and we look forward to seeing these projects being
progressed.
"We have had an extremely good relationship with the Company and
look forward to supporting the next phase of the Dundas Ilmenite
Project as it progresses towards first production."
Further Information
Exploitation Licence
The Licence will allow Dundas to progress towards procurement,
construction and ilmenite production, where mining will be carried
out through simple surface mining on raised beach sand deposits,
simple wet gravity separation and magnetic separation.
The Licence, which is valid for an initial period of 30 years,
with the option for future extensions, will allow Bluejay to
produce 440,000 tonnes per annum, as indicated in the PFS, and
initial production can be upscaled under the Exploitation
Licence.
Bluejay is required to obtain the Government's approval (Section
19 - 43 permit) for the exploitation plan and closure plan by 31
December 2022 and to start mining no later than 31 December 2025
unless approved otherwise. These approvals are expected to take a
maximum of six months from submission as stated by the Ministry of
Mineral Resources on Friday 11 December and will occur in parallel
with the company's mine development planning.
The Exploitation Licence will see a royalty paid to the
Government of Greenland of 1.0%, 2.0% and 2.5% on years one, two,
and three respectively and with 2.5% being paid from years four
onwards.
Mine Life & Future Exploration
The current PFS mine life is 11 years and is comprised of an
onshore Mineral Reserve of 67 Mt (1.6% TiO2 cut-off grade) within a
JORC compliant, indicated Mineral Resource of 117 Mt. The remaining
onshore indicated Mineral Resource provides possibilities for
increased production and/or extended mine life. The remaining
onshore resources are included within the Exploitation Licence.
Additional onshore exploration targets east of the mineral resource
provide opportunities to further extend the onshore mine life.
A JORC compliant marine Exploration Target of 300 - 530 million
tonnes at 0.4 - 4.8% ilmenite in-situ exists adjacent to the
Licence area. This target will eventually be systematically tested,
and could be added to the project based on an additional
application to the Government of Greenland.
Impact Benefit Agreement
In conjunction with the award of the Exploitation Licence, the
IBA between the Municipality of North-West Greenland, the
Government of Greenland and Dundas Titanium A/S has been
signed.
The IBA intends to promote the cooperation between the Licensee,
the Municipality of North-West Greenland (Avannaata Kommunia) and
the Government of Greenland for developing Dundas into a
sustainable mining project and an integral part of Greenlandic
society.
EIA and SIA
The EIA and SIA studies have been approved as part of the
Licence granting process. An environmental monitoring programme,
based on the EIA, will also be established.
The process of granting the Exploitation Licence included a
Public Consultation on the EIA and SIA. Comments and questions from
the public during the public consultation period were documented
and responded to by Dundas Titanium A/S and the Greenland
Authorities in White Books for the EIA and SIA. In addition, the
Project has consulted Canadian authorities as part of the
'Convention on Environmental Impact Assessment in a Transboundary
Context' ("ESPOO"). The consultation was successfully completed at
the end of November 2020.
Optimisation Study
The Company is actively working to reduce the Capital
Requirements and Operating Expenses determined in the PFS. This
process has/will result in cost savings and alternative solutions
for a leaner and greener mining operation. Options for renewable
energy input to the operation are also being considered.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
**ENDS**
For further information please visit
http://www.bluejaymining.com or contact:
Roderick McIllree Bluejay Mining plc +44 (0) 20 7907 9326
Kevin Sheil Bluejay Mining plc +44 (0) 20 7907 9326
------------------------------ ---------------------
SP Angel Corporate Finance
LLP
Ewan Leggat (Nominated Adviser) +44 (0) 20 3470 0470
------------------------------ ---------------------
SP Angel Corporate Finance
LLP
Adam Cowl (Nominated Adviser) +44 (0) 20 3470 0470
------------------------------ ---------------------
Hannam & Partners (Advisory)
Andrew Chubb LLP +44 (0) 20 7907 8500
------------------------------ ---------------------
Tim Blythe Blytheweigh +44 (0) 20 7138 3205
------------------------------ ---------------------
Megan Ray Blytheweigh +44 (0) 20 7138 3205
------------------------------ ---------------------
Notes
Bluejay is dual listed on the London AIM market and Frankfurt
Stock Exchange and its shares also trade on the OTCQB Market in the
US. With projects in Greenland and Finland, its most advanced
project is the Dundas Ilmenite Project in Greenland, which is being
developed towards production in the near term. The Dundas Ilmenite
Project has been proven to be the highest-grade mineral sand
ilmenite project globally, with a JORC Compliant Resource of 117
million tonnes at 6.1% ilmenite and a maiden offshore Exploration
Target of between 300Mt and 530Mt of ilmenite at an average
expected grade range of 0.4 - 4.8% ilmenite in-situ.
The Company's strategy is focused on securing an offtake partner
and commencing commercial production at Dundas in the near term in
order to create a company capable of self-funding exploration on
its current projects and future acquisitions.
Bluejay holds three additional projects in Greenland - the
2,897sq km Disko-Nuussuaq ('Disko') Magmatic Massive Sulphide
nickel-copper-cobalt-platinum group element-gold project
('Ni-Cu-Co-PGE-Au'), which has shown its potential to host
mineralisation similar to the world's largest nickel-copper mining
district at Noril'sk-Talnakh, northern Russia; the 692sq km
Kangerluarsuk zinc-lead- silver project ('Kangerluarsuk'), where
historical work has recovered grades of 41% zinc, 9.3% lead and 596
g/t silver and identified four large-scale drill ready targets; and
the 2,025 sq km Thunderstone project which has the potential to
host large-scale base metal and gold deposits.
The Company also has a 100% interest in a portfolio of copper,
zinc and nickel projects in Finland. This multi-commodity portfolio
has been restructured to be cost-sustainable whilst determining the
best plan for future development. For its Enonkoski Ni-Cu-PGM-Co
Project in Finland Bluejay has entered a joint-venture and earn-in
agreement with a mining major.
**ENDS**
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