LONDON (Alliance News) - Bluejay Mining PLC on Wednesday announced a 15% increase in the total resource at the Dundas ilmenite project in Greenland.
The new resource at Dundas is 117 million tonnes of ore at a grade of 6.1% ilmenite, with a 0% cut-off grade. This follows drilling carried out at Iterlak East and Iterlak West.
Bluejay said the new resource "positively enhances" the economics of Dundas. It replaces the previous resource announced in December last year.
Bluejay also has an offshore exploration target at Dundas, which could hold between 300 million tonnes to 530 million tonnes at a grade of 0.4% to 4.8% ilmenite.
This is "conceptual" in nature, Bluejay did say, meaning it cannot be certain this would lead to any new resources.
Chief Executive Roderick McIllree said: "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 there is still a lot yet to be realised.
"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 117 million tonnes at 6.1% ilmenite on the raised beaches of Dundas, enhancing both the economic potential of the project and the potential life of mine."
"Significant upside is also represented by the publication of the maiden offshore exploration target. In conjunction with this, today's announced onshore resource upgrade represents another meaningful step forward in both the financial and commercial evaluation of the project with the successful identification of additional saleable material at Dundas," he added.
Shares were 0.7% lower on Wednesday at a price of 9.85 pence each.
Bluejay on Tuesday announced a partnership with a Rio Tinto PLC subsidiary which would see the two analyse ilmenite from Dundas. Ilmenite is an ore of titanium.
Bluejay (JAY)