Bluejay Regulatory News (JAY)

Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector: Mining

23 April 2018

Bluejay Mining plc ('Bluejay' or the 'Company')

>400% increase in resources at world's highest-grade ilmenite project

Bluejay Mining plc, the AIM and FSE listed company with projects in Greenland and Finland, is delighted to publish an updated JORC compliant Mineral Resource Estimate and significant resource upgrade for the Dundas Ilmenite Project ('Dundas' or 'the Project') in Greenland, which reaffirms Dundas as the highest-grade mineral sand ilmenite project globally whilst highlighting the Project's significant commercial and strategic value. The updated Mineral Resource Estimate has been prepared by SRK Exploration Services Limited ('SRK').

Highlights

· Total resources identified to date at Dundas now sit at 96 million tonnes at 6.9% ilmenite (in situ). An increase of some 400% on the maiden resource announced in April 2017.

o Resources comprised of the following;

§ Indicated Mineral Resources at Moriusaq equal to 81 million tonnes at 6.1% ilmenite in situ.

§ A detailed breakdown of the indicated Mineral Resources at Moriusaq can be seen in the table below;

§ Inferred Mineral Resources of;

· 7 million tonnes at 12.2% ilmenite (in-situ) at Iterlak East, a newly identified area ~15km east of Moriusaq

· 7 million tonnes at 9.2% ilmenite (in-situ) surrounding the Moriusaq indicated resources and,

· 1 million tonnes at 6.1% (in-situ) at Iterlak West

§ A newly identified additional Exploration Target over the Iterlak Delta of between 20 million tonnes and 60 million tonnes at between 6% and 10% ilmenite (in-situ). See Figure 1.

· Also underway is an assessment of the shallow marine area where potential for additional resources is being evaluated. Results will be announced in due course.

· Opportunity to upgrade the in-situ grade by up to 30% via a simple oversize separation step prior to processing, further enhancing run of mine (ROM) grade and project economics.

· Results clearly indicate the strong possibility of a large and long-life operation with obvious expansion potential.

Bluejay CEO Roderick McIllree said: "We are delighted with this result, a lot of hard work by a lot of people has gone into this upgrade confirming Dundas's place amongst other major global ilmenite deposits. We expect that the natural advantages of a homogenous material new high grade indicated resource to pin an operation around and a very interesting set of very high grade targets to the East around Iterlak which is the main feeder zone will help the project economics in the long term. Coupled with the fact that this material is recognised by industry majors as being suitable for sulphate pigment and both sulphate slag and chloride slag production means we are well placed to make some big strides in the short term.

"These results matched our best internal expectations of size and grade for the indicated resources at Moriusaq, the surprise of 2017 was the realisation that Iterlak, where mineralisation is found in raised beaches and the delta, appears to host similar sized zones with much higher grades (2017 result from Iterlak was 77% ilmenite in situ on the raised beach) which says to me that if things continue as they did during 2017 Dundas could quickly become unique amongst all known deposits.

" We have continued to progress permitting, pre-feasibility work modules, as well as a general preparation towards a busy 2018, and we expect to be in a position to update shareholders shortly. The recent award of "Prospector and Developer of the Year" by the Government of Greenland is a testament to our competence and compliance to date in ensuring that the Dundas Project meets its qualifying obligations for an exploitation licence. Alongside this, the team at Bluejay has been working hard with our consulting partners (Wood Plc, IHC Robbins, SRK, Royal IHC and study managers Quedtech ltd and Keypointe ltd) in developing our mine and operational plan.

"The Company maintains a cash buffer of more than £15 million having already secured a 30t mining fleet, conveyor & trommel systems as well as other necessary equipment and accommodation necessary to prepare and ship out material for smelter testing. During the year we will prepare the site with various infrastructure works. This equipment will continue to be augmented throughout the year.

"As part of evaluating the commercial realities of viable long term ilmenite production, we have identified a simple and low cost processing route levering off natural characteristics such as the ability to remove ~30% of the oversize material prior to processing (thereby improving the in-situ grades by up to 30% also). We have also optimised the mine plan and schedule such that the operation starts on the highest grade material, a situation that we should be able to maintain for many years. Importantly, the ore contains concentrations of radionuclides that are below detection limits".

"The Company will be updating shareholders regarding all other activities in due course."

To view a version of the announcement with a diagram showing the resource areas, click here:

http://www.rns-pdf.londonstockexchange.com/rns/7035L_-2018-4-22.pdf

Additional information

SRK has produced an updated 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) based all valid data available as at 20 April 2018. The estimate has been derived using a combination of auger and sonic drilling data which has been interpolated into a 3D geological model created by SRK.

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.

· In situ TiO2 conversion to in situ ilmenite is calculated by dividing the TiO2 by 0.4765

· Heavy Minerals have been separated from a -2 mm +63 µm size fraction using heavy liquid separation at a density of 2.95 g/cm3

· Mineralogical assessments indicate that ilmenite is the only mineral of value in the assemblage. The remainder of the heavy minerals is dominated by pyroxene and amphibole.

· % TiO2 in-situ assumes that all recoverable TiO2 is in the heavy mineral component of the -2 mm +63 µm size fraction

· % Ilmenite In-situ assumes that all TiO2 is within ilmenite and that the ilmenite contains 47.65% TiO2, 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 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. It should be noted that this Exploration Target, of some 20-60 million tonnes with a mean grade of between 6 and 10% ilmenite, 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. The target grade and tonnage ranges have been derived from a combination of assays of samples collected from trenches and ground penetrating radar data (using an assumed density) respectively. The latter allowed layering to be interpreted in sediments and is supported by seismic data at the mouth of the delta. The Exploration Target also reflects the area and interpretations therein that are planned to be explored and tested by the Company in the next field season.

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.

The information in this press release that relates to an Exploration Target is based on in formation compiled under the direction of Mr William Kellaway who is Member of The Australian Institute of Mining and Metallurgy (membership # 306203). Mr Kellaway is a full-time employee of SRK Exploration Services 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. Mr Kellaway 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.

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.

**ENDS**

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