TIDMJAY
RNS Number : 5194K
Bluejay Mining PLC
10 July 2017
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10 July 2017
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector:
Mining
Bluejay Mining plc ('Bluejay' or the 'Company')
Approval of exploration programmes for Greenland projects
Bluejay Mining plc, the AIM and FSE listed company with projects
in Greenland and Finland, is pleased to announce that its 2017
exploration programmes at its Pituffik Titanium Project
('Pituffik') and Disko-Nuussuaq Magmatic Massive Sulphide
Nickel-Copper-Platinum Project ('Disko') in Greenland have been
approved by the Mineral Licence and Safety Authority ('MLSA') in
Greenland.
Overview
-- All work programmes for Pituffik and Disko approved by
Greenland Government MLSA with work to commence imminently.
-- Key deliverables:
o Drilling designed to expand and upgrade the current resource
of 23.6Mt at 8.8% ilmenite (see Figure 1).
o Bulk sampling designed for progressing offtake
discussions.
o Geotechnical drilling and mapping designed to underpin
localised civil construction requirements.
o Fjord scale bathymetric survey managed by Geological Survey of
Denmark ('GEUS') designed to map the regional seafloor to
facilitate future transport logistics.
o Advance exploitation permitting as well as continued intensive
stakeholder engagement.
-- An independent peer comparison / benchmarking exercise
confirms Pituffik as the highest-grade mineral sand ilmenite
project globally. Bluejay to focus on the size characteristic of
the project as key objective for 2017.
-- High-power ground based electromagnetic ('EM') survey to be
completed at Disko. The Company continues to evaluate options for
best path to value creation for its portfolio, including Disko.
-- EM survey sequenced to optimise cost and targeted for Q4 2017 completion.
Bluejay CEO Roderick McIllree said, "The 2017 work programme has
begun. Development plans have been on the drawing board since the
completion of our 2016 season and the finalised work programme is
streamlined to deliver maximum result for cost. This will be a
value add second half, as we demonstrate the true scale of this
very unique project. Having proven that Pituffik is the
highest-grade ilmenite project globally, we will now demonstrate
the size characteristic and its ultimate commercial value.
"I would like to commend the team for their tireless preparation
in getting us to this point, particularly as they have identified a
strategic opportunity to undertake work at Disko for virtually no
additional cost. We are prepared and ready for a very exciting work
season."
Ilmenite Project Benchmarking
Pituffik has been independently proven to be the highest-grade
mineral sand ilmenite project globally. The objective for 2017
amongst many things is demonstrating the potential volume of the
ilmenite rich sediments.
Figure 1: Benchmarking of global ilmenite mineral sands projects
- see PDF
Pituffik Titanium Project
Bluejay through its 100% owned Greenlandic domiciled subsidiary,
Dundas Titanium A/S ('Dundas'), intends to complete three primary
work programmes at Pituffik during its 2017 field season. These
programmes are:
-- Expand and upgrade resources utilising both auger and sonic drilling
Pituffik has an Inferred resource of 23.6Mt at 8.8% ilmenite (in
situ), including a high-grade zone of 7.9Mt at 14.2% ilmenite, both
of which sit within an SRK Exploration Target of between 90Mt and
130Mt with an in-situ grade of between 6.3% and 8.4% ilmenite.
Crucially, this resource and exploration target represents only 17%
of the raised beach environment within the Moriusaq target area.
The raised beach environment is one of three types of domains
within the licence area, with the other two being the active and
drowned beach environments, and Moriusaq is one of two primary
target areas, with the other being Interlak.
Drilling with both sonic and auger drill rigs will concentrate
on increasing the total mineral inventory, demonstrating the
project's global significance and ultimately building Pituffik's
value potential. Work will particularly focus on the Iterlak
region, where some of the highest grades were encountered in 2016.
Drilling is scheduled to commence in July 2017, and will continue
until September 2017.
Figure 2: Drill hole locations for refining the global resource
at Pituffik - see PDF
-- Proof-of-concept bulk sampling programme and production of
geotechnical information for civil construction ahead of the
potential construction of supporting infrastructure at Moriusaq in
early 2018
Bluejay intends to undertake a bulk sample programme in July
2017, which will include the dredging of material from the active,
raised and drowned beach environments in order to prove Bluejay's
ability to deliver product based on its current production model.
Target groups for the bulk sample and off-takers have been
identified and the mechanics of delivery and other technical
support are in place. Evaluation of ground conditions for civil
construction will also occur during the programme to enable the
best construction methods for the infrastructure required at
Pituffik. The majority of the bulk sample will be shipped from site
in early August 2017.
-- Bathymetric survey of a shipping channel to allow a bulk carrier to access Moriusaq
Side-scan sonar coupled with bathymetry surveying to identify
shipping and transport logistics in and out of Moriusaq. Conducted
by the GEUS, the survey is expected to take several weeks.
Disko-Nuussuaq Magmatic Massive Sulphide Nickel-Copper-Platinum
Project
In addition to the Pituffik work programme approvals, the MLSA
has also approved Bluejay's work programme at the Disko-Nuussuaq
Magmatic Massive Sulphide ('MMS') Nickel-Copper-Platinum-Cobalt
Project. The Disko-Nuussuaq work program will take place in Q4
2017.
Disko is a flood basalt magmatic massive sulphide polymetallic
occurrence of copper, nickel, platinum & cobalt group elements
('PGE'). A 28 tonne boulder of MMS (assayed 7% nickel, 3% copper
and 2ppm PGE) was found on Disko with all work to date pointing
towards a direct analogy with Norilsk Nickel's Norilsk-Talnakh
project in northern Russia ('Norilsk'), which recognised as the
largest nickel-copper PGE and cobalt deposit in the world. Disko
has been the subject of exploration work for more than three
decades, with >US$50m invested in historical work by previous
owners. Following a thorough review of this data, Bluejay has
formulated a development programme and accordingly intends to
undertake a ground based electromagnetic survey ('EM') on the
southern portion of the licence area. This will focus on three
primary target areas - Jose, Placido and Luciano.
Three ground based deep penetration EM surveys will be conducted
with the aim of detecting strong bedrock conductors that might be
associated with Norilsk-style (Ni-Cu-Pd bearing) sulphide
mineralisation. Southern Geoscience Consultants has completed a
full data compilation review and reprocess and has designed and
will execute the next phase of work programmes designed to identify
optimal drill hole locations during 2018. This programme will be
conducted utilising equipment once it has been demobilised from
Pituffik, which represents a huge cost saving in comparison to a
standalone survey.
Figure 3: Field activities at Disko - see PDF
Figure 4: The three largest of the MMS targets at Disko - 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
------------------- -------------------- ----------------
SP Angel Corporate +44 (0) 20 3470
Soltan Tagiev Finance LLP 0470
------------------- -------------------- ----------------
St Brides Partners +44 (0) 20 7236
Charlotte Page Ltd 1177
------------------- -------------------- ----------------
St Brides Partners +44 (0) 20 7236
Megan Dennison Ltd 1177
------------------- -------------------- ----------------
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 30 km 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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