JOHANNESBURG (miningweekly.com) – Aim- and FSE-listed Bluejay Mining is in discussions with potential customers for production from the Pituffik mineral sands mine, which the company is developing in Greenland.

CEO Roderick McIllree said on Wednesday that offtake discussions were well under way and that results from the bulk sampling programme, designed to support negotiations, were exceeding expectations.

During bulk sampling, Bluejay is producing representative material from across active and raised beach environments at Moriusaq and is shipping the product to potential end-customers and refiners. To date, about 250 t of bulk sample have been shipped and a further 250 t is being prepared for shipping.

McIllree said that the levels of visible ilmenite concentrations in the bulk sampling were greater than expected, meaning that if production rates were maintained, the stockpiling of ilmenite rich sand would start earlier than planned. This would allow for shipments and sales as soon as Bluejay received its exploitation licence.

“Due to the quality of our product, in terms of its chemistry and consistency, we expect our product to be highly sought after. Furthermore, because of our simple, low-cost production model, together with our strategic Greenlandic location, we believe Pituffik has the potential to be in the lowest quartile production costs,” he added.

Shipping from the Pituffik project will be possible for at least seven months a year, but Bluejay is examining the possibility of shipping all-year-round, or alternatively stockpiling some product outside Greenland to supply customers all year.

McIllree clarified, though, that Bluejay intended producing ilmenite 365 days a year, despite not being able to ship all-year-round.

Bluejay is planning on starting construction of the mine plant and supporting infrastructure in early 2018. However, before full-scale mining can start, the Greenland Mineral Resource Authority has to grant an exploitation licence.

The company expects to finalise its environmental impact assessment and social impact assessment in the coming months and said the full exploitation licence should be granted in the first half of 2018.

“I would like to highlight, and also give my thanks, for the overwhelming support we have received from the local community to date. Just 12 comments were raised in our public appeal process, which in our experience is very low and gives an indication of the levels of support we are receiving. We have also received very positive feedback from multiple government and environmental agencies, who have pledged their support to the project, recognising that Pituffik will be a significant boost to the region with minimal environmental impact,” said McIllree.

The project has an inferred resource of 23.6-million tonnes at 8.8% ilmenite. This includes a high-grade zone equal to 7.9-million tonnes at 14.2% ilmenite at Moriusaq, which is the focus of the feasibility and production studies that are currently under way.

Bluejay is targeting a larger exploration area, primarily encompassing potential mineralisation below and inland from the current drilling, of between 90-million tonnes to 130-million tonnes at an in-situ grade of between 6.3% and 8.4% ilmenite.