Update12 Sep 2018 14:09
Bluejay Mining* (JAY LN) 16p, Mkt Cap £136m – Interest from multiple end users as management look to lock away 450,000tpa of high-grade ilmenite concentrate
STRONG BUY - included in MSCI index
Target Price 45p
Bluejay Mining report good progress in this year’s field season at Dundas in Greenland.
Bulk sample: the team have just completed the processing of a 10,000t bulk sample of +/-40% ilmenite and are awaiting delivery instructions for further processing and testing.
Offtake discussions: further samples are being sent to a number of global processing and refining groups to progress discussions with the major peers of the titanium industry for for up to the entire 450,000tpa of planned annual ilmenite production.
Production: the 450,000tpa production number has come about through ongoing feasibility study work which sets this as a reasonable first-build production capacity. We expect the feasibility study to be published in early October.
Iterlak Delta:
68 holes have been drilled
23 holes in the delta av. 12m depth, no bedrock seen as yet
45 holes drilled on the raised beach east of Iterlak Delta and at the foreland west of Iterlak Delta.
Samples being sent to MetSolve in Canada for assays after Particle Size Analysis ‘PSA’ which is done at Nuuk in Greenland.
Regional Exploration: for ilmenite sediment and sources has been completed over the whole licence area confirming ilmenite-rich sediments throughout.
The source of the ilmenite has also found in the form of exposed preeminent sills and dykes inland.
Delta #2: a second delta at the east of the license area also appears to have geomorphological similarities to Iterlak Delta.
Hard rock ilmenite sources are also being evaluated for their potential and to understand the depositional environment.
New infrastructure and machinery
The team have completed the hydrogeology installations around the licence area, Installed a year-round weather monitoring station and expanded the existing marine bathymetry survey past the Iterlak Delta.
They have also completed geotechnical assessments for construction of new infrastructure including the process plant, port loading, power generation, water filtration, accommodation, storage and workshops.
The team also installed a mobile trommel screener, two mobile stacking units and upgraded the mining fleet with a 30t excavator, two 30t wheel loaders and two articulated dump trucks.
BloueJay had a busy team of 60 personnel at site through the field season and held a number of community meetings at site this season.
Environmental baseline studies are now done enabling the completion of the social impact assessment and environmental impact assessment necessary for a full-scale mining permit
Conclusion: We expect to see a significant increase in the resource from the drilling work done in this field season and it would be reasonable to assume an increase in the resource at Iterlak.
*The SP Angel mining analyst has visited the Dundas, Itela
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