Monet2 posted on 29th May3 Jun 2019 16:37
Bluejay Mining* (JAY LN) 10p, Mkt Cap £85m – Marine resource adds 300-530mt to existing indicated Dundas ilmenite resource in Greenland
– Rio Tinto smelter test on Bluejay ilmenite - traditionally smelter tests runs can be up to 10,000t of ilmenite
STRONG BUY - Target Price 45p - included in MSCI index
(Dundas Ilmenite project, Greenland, 100% owned)
Bluejay Mining report a significant 15% increase to the company’s JORC (2012) ilmenite resource at Dundas in the north of Greenland.
The resource now stands at a substantial 117mt grading 6.1% ilmenite in situ using a 0% cut-off grade for 7.1mt if contained ilmenite.
The previous resource was for 96mt grading 6.9% for 6.6mt on the raised beaches just south of the former settlement at Pituffik.
Rio Tinto Iron and Titanium Canada ‘RTIT’ reported yesterday that it is to test ilmenite material from its Dundas at its Sorel-Tracy plant in Quebec, Canada.
”The two companies “will work together to review and improve on the technical work that has been completed on Dundas to date.” Indicating that substantial testing has already been done on samples already supplied to Rio Tinto and others.
We expect the next test to run some 5,000-10,000t of material through one of the Sorel furnaces. The benefit of this is to prove the quality of the Dundas ilmenite concentrate with the added benefit of demonstrating the logistics of shipping from Greenland to Canada.
Sorel is 3,394km from Dundas and around six days shipping making this a relatively quick and low-cost run from a transport perspective.
Maiden offshore JORC (2012) ‘Exploration Target’ is estimated at between 300-530mt with a potential grade of between 0.4-4.8% ilmenite in situ. Indicating much more of the same.
The offshore work includes drowned beaches between 0-18m water depth with the estimates derived from marine seismic bathymetry as well as many sample points along the full length of the 30km licence area.
Marine dredging: The team have been working with Royal IHC to produce a dredging study to mine the offshore ilmenite as an expansion to the existing operation.
Dredges can move huge tonnages of ilmenite material cheaply and easily. A simple dredge could move >1mt of coarse material a month in the shallow marine environment at very low cost indicating the major constraint to production should be offtake agreements and processing capacity and not the ability to move material.
See dredges in link below where the IHC Beaver 65 DDSP should be able to move around 1.5mt per month of ilmenite-rich ore if there is sufficient market demand for the concentrate: https://www.royalihc.com/en/products/dredging/cutter-dredging/ihc-beaver-cutter-suction-dredger
Shipping to China through the North West passage brings this fast growth market much closer to Bluejay while low-cost power may also be utilised if some processing is also done in Canada. Russia has also just launched one of three new nuclear icebreakers to keep its Arti
Sign In
Follow the stocks
