TIDMJAY
RNS Number : 4392N
Bluejay Mining PLC
09 August 2017
09 August 2017
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector:
Mining
Bluejay Mining plc ('Bluejay' or the 'Company')
2017 Work Programme Well Advanced at World's Highest-Grade
Mineral Sand Ilmenite Project Globally
Bluejay Mining plc, the AIM and FSE listed company with projects
in Greenland and Finland, is pleased to announce that drilling,
bulk sampling and feasibility and permitting programmes are now
underway at the Pituffik Titanium Project in Greenland ('Pituffik'
or the 'Project'). These work streams all form part of the
Company's 2017 exploration work programme. To view the press
release with the illustrative maps and diagrams please use the
following link:
http://www.rns-pdf.londonstockexchange.com/rns/4392N_-2017-8-8.pdf
Overview of the Work Programmes:
-- Drilling underway
o Focus is to expand and upgrade the current resource of 23.6Mt
at 8.8% ilmenite, which is independently proven to be the
highest-grade mineral sand ilmenite project globally
-- Emphasis is on validating the significant tonnage potential
along the additional 25km of raised beach licence area not
currently included in the resource as well as the existing resource
(see Figure 5 in PDF).
o 35 holes completed within one week, in an extensive programme
using sonic drilling to improve and extend the current
resource.
-- To date ilmenite rich sediment has been observed in all drill
samples, confirming the rich regional potential and extent of
mineralisation across entire onshore 30km licence, areas of the
raised beach remain open at depth due to only having 30m of
drilling equipment on hand (see Figure 1 in PDF).
o Auger drilling completed to the east and west of Moriusaq and
will move to Itelak shortly.
-- To date ilmenite rich sediment has been observed in all 35
holes drilled, further confirming the regional extent of
mineralisation across entire onshore licence area.
-- Proof-of-concept bulk sampling programme commenced - material
to support ongoing offtake discussions.
o The first batch, containing 250 tonne ilmenite rich
run-of-mine product, has been shipped from Pituffik.
o Based on visual estimates the ilmenite concentrations in the
bulk sample are better than expected. (See Figure 2 in PDF)
o An additional 250 tonne bulk sample destined for separation to
provide ilmenite concentrate for customer analysis purposes is now
advanced and expected to be completed within a similar
timeframe.
-- Bathymetry survey underway to enable a robust assessment of shipping options
o Completion expected in Q3 2017.
o Designed to identify possible shipping channels both to and
from Pituffik as well as optimal fixed-point mooring locations for
Handymax sized bulk carriers adjacent to the Moriusaq area.
o Near shore surveying also completed for ship loading option
study underway. (see Figure 3 in PDF)
-- Orbicon Arctic A/S on track to complete the final baseline
sampling programme for the Environmental Impact Assessment ('EIA')
by end of August 2017 (See Figure 4 in PDF).
-- Pre-consultation period for EIA and Social Impact Assessment ('SIA') studies now complete.
o All stakeholder comments (12 stakeholder responses in total)
incorporated into final Terms of Reference ('TOR') and resubmitted
to Government for final approval.
o Once TOR approval has been received, the Company will finalise
the EIA as part of the exploitation licence application process.
Both the EIA & SIA are advancing well.
-- Feasibility study due for delivery H2 2017. Operational unit
cost is low and project economics appear robust based on internal
modelling.
-- Successful analyst trip to site completed. The Company hosted
several analysts and corporate advisors on site.
-- Well-funded to maintain active development programme -
current cash position of over GBP5.2 million with majority of work
programmes prepaid.
Bluejay CEO Roderick McIllree said, "I am delighted to report
that our 2017 work programme is now well advanced. With drilling
started, bathymetry survey commenced, and licencing application
modules such as the EIA, SIA & stakeholder engagement all
progressing as stated earlier this year it was very pleasing to see
the onsite team implementing and managing multiple work programmes
in an efficient and effective manner.
"We have already proven that Pituffik is the highest-grade
mineral sand ilmenite project globally. Now we are focussed on
demonstrating the significant size of the asset, securing an
off-take partner and defining a viable logistics solution to ship
our premium quality ilmenite product, as we remain on track to
commence commercial production in 2018.
"Despite having only recently commenced the onsite part of the
work programmes, Pituffik continues to exceed our expectations,
with early results already confirming the significant commercial
potential of our Project. Indicative of this is the first hole
drilled on the active beach area immediately east of the current
resource limit, where we intersected what appears to be extremely
high-grade ilmenite bearing material throughout the entire 5.5m
hole depth. This is a remarkable outcome; it's clear we have a
project of unique and special value and I am convinced that the
resource upgrade expected Q4 2017 / Q1 2018 will confirm Pituffik
as being globally significant in terms of tonnage as well as
maintaining its position as being the highest-grade project
globally.
"I look forward to updating shareholders on permitting, offtake
and customer acceptance developments alongside the recent technical
breakthroughs being achieved in the metallurgical process and
design of the operation, as well as several other longer lead items
regarding creating value out of the existing portfolio of
licences."
Further Information
Pituffik Titanium Project
Bluejay, through its wholly owned subsidiary Dundas Titanium
A/S, has now commenced its 2017 field programme, with drilling and
bulk sampling programmes currently underway at its flagship
Pituffik Titanium Project. A bathymetric survey, to examine the
potential for a shipping channel to allow bulk carrier access at
Moriusaq is underway. The field camp is now fully established, with
all equipment needed for the 2017 work programme purchased and on
site.
Bulk Sampling Programme
A "proof of concept" bulk sampling programme is underway at the
Pituffik Project as the main focus of this year's work programme to
facilitate customer acceptance of the Pituffik premium ilmenite
product. Approximately 375 tonnes of bulk sample has been collected
to date (inclusive of the 250 already shipped) with visual results
indicating higher grade material than expected.
BS001 (Bulk Sample 001) was taken approximately 500m to the east
of Moriusaq in an environment that includes deltaic, active and
raised beach material (see Figure 6). This coarse grained sandy
material was screened, to 2mm passing, using an UltraDeck screen
(Screen One) to create a sand product that was loaded into two
tonne bulk transport bags in preparation for shipping and
processing into final premium product ready for customers.
The screen is loaded with a Komatsu front end loader, the screen
deck then separates the oversize material, leaving the upgraded
ilmenite rich sand product to be conveyed into the bulka bags which
are subsequently removed by the JCB 4CX (backhoe loader) and placed
in rows. The bags are then uniquely marked, tied and made ready for
loading onto the barge and shipped from site.
A total of 110 tonnes of ilmenite rich sand was screened in
around seven hours representing a production rate of >15 tonnes
per hour, which was a significantly higher production rate than was
anticipated, this is due the deposit having limited to no slimes to
slow the separation process.
Screen One was then moved to BS002, approximately one kilometre
from town, where active beach material was mined above the high
tide line near a larger perennial stream. In a single four-hour
period, a total of approximately 50 tonnes of ilmenite rich sand
was screened and bagged, taken alone this almost represents one
tenth of the total bulk sample amount for the entire season.
Screen Two was mobilised to an area of high grade raised beach
material, within the defined resource. The face was prepared prior
to screening and during the first day of operation 110 tonnes was
produced.
Visible ilmenite concentrations in bulk sampling has surpassed
expectations. If production rates are maintained, then stockpiling
of ilmenite rich sand will commence much earlier than planned.
Drilling Programme
Auger drilling is now completed at Moriusaq West, an area of
raised beach to the west of the previously defined resource area.
No previous auger drilling had taken place at Moriusaq West prior
to the 2017 field season and ilmenite rich sediment was observed in
all samples, this will positively impact future resource
calculations. The observation of black sands confirms the regional
extent of mineralisation across the licence area. Auger drilling
will now move eastwards towards Itelak.
A CRS-T sonic drill rig, purchased from Eijkelkamp SonicSamp
Drill, leaders in the development construction and support of
leading edge sonic drill technology has also been mobilised east of
the area where SRK defined an exploration target of between 90Mt to
130Mt at an in-situ grade of between 6.3% and 8.4% ilmenite. Whilst
only starting early last week 35 holes have now been completed in
the programme and to date ilmenite rich sediment has been observed
in all samples, confirming the regional extent of mineralisation
across entire onshore licence area. Sedimentary thickness increases
towards Iterlak with holes now ending in mineralisation at several
places due to the sediments being thicker than the 30m of drill
strings the company brought to site.
Figure 1. Sonic drill rig in operation - See PDF
Figure 2. First bulk sample shipped from site - See PDF
Figure 3. Bathymetry survey vessel - See PDF
Figure 4. Environmental baseline seafloor sampling - See PDF
Figure 5. Extensive raised beach areas to be drilled and added
to new resource model - See PDF
Figure 6. Bulk sample location - See PDF
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.
**S**
For further information please visit http://www.titanium.gl or
contact:
+44 (0) 20 7907
Roderick McIllree Bluejay Mining plc 9326
------------------- -------------------- ----------------
SP Angel Corporate +44 (0) 20 3470
Ewan Leggat Finance LLP 0470
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SP Angel Corporate +44 (0) 20 3470
Soltan Tagiev Finance LLP 0470
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St Brides Partners +44 (0) 20 7236
Charlotte Page Ltd 1177
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St Brides Partners +44 (0) 20 7236
Megan Dennison Ltd 1177
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Notes
Bluejay has a number of highly prospective licences at various
stages of development in Greenland and Finland. The Company is dual
listed on the London AIM market and Frankfurt Stock Exchange.
The Company is currently focussed on advancing the Pituffik
Project in Greenland, an area that has only recently revealed its
mineral potential following changes in the climate. Pituffik, which
with an initial Inferred JORC resource of 23.6Mt at 8.8% ilmenite
(in situ), including a high-grade zone equal to 7.9Mt at 14.2%
ilmenite, and significant further upside, has been proven to be the
highest-grade mineral sand ilmenite project globally.
Pituffik comprises three main target areas along an >40km
coastline historically proven to contain large and high-grade
accumulations of primary ilmenite occurring as placer deposits in
the following environments:
-- Raised beaches; containing ilmenite accumulations over widths
of more than 1km, of unknown depths, along more than 30km of
coastline;
-- Active beaches; which refer to the area seaward of the
frontal dunes, including the beach, tidal zones and surf zone;
and
-- Drowned beaches; refers to the areas seaward of active beaches.
The Company's strategy is focused on delivering a bulk sample
for marketing and sales engagement "proof of concept" from the
Pituffik Project in 2017 with the aim of ultimately generating cash
flow to create a company capable of self-funding exploration on
current projects and future acquisitions.
Bluejay also holds a 100% interest in a portfolio of copper,
zinc and nickel projects in Finland. This multi-commodity portfolio
remains a strategic asset of importance and has been restructured
to be cost-sustainable whilst determining the best plan for future
development.
Pituffik Mineral Resource Estimate
The Pituffik mineral resource estimate has been prepared by SRK
Exploration Services ('SRK') and is broken down into three
components:
-- An Inferred resource of 23.6Mt at 8.8% ilmenite (in situ) for the total area tested
-- This includes a high-grade zone equal to 7.9Mt at 14.2%
ilmenite (in situ) at Moriusaq which is the focus of the
feasibility and production studies that are currently underway
-- A larger exploration target for the area, primarily
encompassing potential mineralisation below and inland from the
current drilling, of between 90Mt to 130Mt at an in-situ grade of
between 6.3% and 8.4% ilmenite
SRK has produced a Mineral Resource Estimate for the Moriusaq
onshore raised beaches target that forms part of Bluejay's
exploration licence in Northwest Greenland (licence number
2015/08). This is the maiden Mineral Resource Estimate produced for
the licence. The Mineral Resource Estimate report prepared by SRK
will be made available during Q2 2017.
The Mineral Resource Estimate is based on all valid data
available as at 1 March 2017. A volume of the raised beaches has
been modelled which encompasses the drilled portion of these areas
with a maximum depth limit set at 3 metres below ground level. The
model covers a surface area of approximately 5km by up to 0.9km.
The model was incorporated into a three-dimensional block model and
the in-situ titanium dioxide ('TiO2') grade and percent recoverable
heavy mineral content were interpolated using an inverse distance
weighted ('IDW') algorithm.
SRK considers that all the delineated mineralisation has
reasonable prospects for eventual economic extraction and the
Mineral Resource Statement has been reported at a 0% cut-off grade
using the terminology and guidelines set out in the JORC 2012
Code.
Table 1: JORC Mineral Resource Statement for Moriusaq Onshore Target, April 2017
Classification Volume Tonnage Density % THM % >2mm % >5mm % <63um % TiO(2) % TiO(2) % Ilmenite
(M.m(3) (M.t) (t/m(3) In In-situ In-situ
) ) HM
--------------- -------- ------- -------- ----- ------ ------ ------- -------- -------- ----------
Inferred 11.2 23.6 2.12 34.5 29.0 21.8 2.5 12.0 4.2 8.8
--------------- -------- ------- -------- ----- ------ ------ ------- -------- -------- ----------
(1) The effective date of the Mineral Resource is April 6th, 2017
(2) The numbers are presented at a 0% cut-off grade
(3) "THM" and "HM" mean Total Heavy Minerals and Heavy Minerals respectively
(4) HM have been separated from a -2 mm +63 um size fraction
using heavy liquid separation at a density of 2.95 g/cm(3)
(5) Preliminary mineralogical assessments suggest that the HM
typically comprises 26.76% ilmenite and that there are no other
valuable HM present. Additional mineralogical data is expected
during April 2017
(6) % TiO(2) in-situ assumes that all recoverable TiO(2) is in
the HM component of the -2 mm +63 um size fraction
(7) % Ilmenite In-situ assumes that all TiO(2) is within
ilmenite and that the ilmenite contains 47.65% TiO(2) , based on
historical exploration data
SRK has also produced a Mineral Resource Statement has been
reported at a 5% in-situ TiO(2) cut-off grade using the terminology
and guidelines set out in the JORC 2012 Code.
Table 2: JORC Mineral Resource Statement for Moriusaq Onshore
Target, April 2017. 5% in-situ TiO(2) cut-off grade applied.
Classification Volume Tonnage Density % THM % >2mm % >5mm % <63um % TiO(2) % TiO(2) % Ilmenite
(M.m(3) (M.t) (t/m(3) In In-situ In-situ
) ) HM
--------------- -------- ------- -------- ----- ------ ------ ------- -------- -------- ----------
Inferred 3.7 7.9 2.12 44.3 22.2 16.7 2.1 15.3 6.8 14.2
--------------- -------- ------- -------- ----- ------ ------ ------- -------- -------- ----------
(1) The effective date of the Mineral Resource is April 6th, 2017
(2) The numbers are presented at a 5.0% in-situ TiO(2) cut-off grade
(3) "THM" and "HM" mean Total Heavy Minerals and Heavy Minerals respectively
(4) HM have been separated from a -2 mm +63 um size fraction
using heavy liquid separation at a density of 2.95 g/cm(3)
(5) Preliminary mineralogical assessments suggest that the HM
typically comprises 26.76% ilmenite and that there are no other
valuable HM present. Additional mineralogical data is expected
during April 2017
(6) % TiO(2) in-situ assumes that all recoverable TiO(2) is in
the HM component of the -2 mm +63 um size fraction
(7) % Ilmenite In-situ assumes that all TiO(2) is within
ilmenite and that the ilmenite contains 47.65% TiO(2) , based on
historical exploration data
SRK is of the opinion that there is a high probability that a
proportion of this currently reported Inferred Mineral Resource can
be upgraded to the Indicated category following additional
exploration. Further, SRK considers that there is a high
probability that the raised beaches hosting this Mineral Resource
extend both at depth and laterally along the shoreline within
Bluejay's licence area. The licence area includes a 30km length of
raised beaches and deltas and Bluejay has demonstrated
mineralisation in several places in addition to the area covered by
the Mineral Resource presented here.
In addition to the Mineral Resource Statement, SRK has derived
an Exploration Target which is planned to be tested by the Company
in the next field season. The Exploration Target tonnage range
reflects SRK's opinion that the mineralisation h potential to be
continuous between 9m and 12m below surface (SRK's Mineral Resource
estimate has been restricted to 3m) which is based on a limited
amount of outcrop exposure. In summary, it comprises potential
mineralisation below the depth currently drilled. The exploration
grade range is based on the grade of the overlying Mineral
Resource.
SRK's Exploration Target is between 90Mt and 130Mt with an
in-situ TiO2 grade of between 3% and 4% (assumed to be between 6.3%
and 8.4% ilmenite) and a heavy mineral content of between 30% and
34% of which between 10% and 12% will comprise TiO2 (assumed to be
between 21% and 25% ilmenite). It should be noted that this is an
estimated range of tonnes and grade and is conceptual in nature,
that there has been insufficient exploration to estimate a Mineral
Resource and that it is uncertain if further exploration will
result in the estimation of a Mineral Resource.
Qualified Persons
The information in this press release that relates to Mineral
Resources is based on information compiled under the direction of
Dr Mike Armitage C Geol., C Eng., who is a Member of the Institute
of Materials, Minerals and Mining which is a Recognised Overseas
Professional Organisation ('ROPO') included in a list promulgated
by JORC from time to time.
Dr Armitage is a full-time employee of SRK Consulting (UK) Ltd
and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he has undertaken to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves' (the JORC Code) and for the purposes of the AIM Rules. Dr
Armitage has reviewed this press release and consents to the
inclusion in the press release of the matters based on his
information in the form and context in which this appears.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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