JOHANNESBURG (miningweekly.com) – Aim- and Frankfurt Stock Exchange-listed Bluejay Mining is “immediately” working to finalise a range of work programmes, including the internal feasibility study, following the completion of the maiden mineral resource estimate for its Pituffik titanium project, in Greenland.
“This is an important step towards commercialisation of Pituffik and the delivery of another stated objective. The maiden resource has exceeded even our expectations and represents an important step toward commercialising the project,” said Bluejay CEO Roderick McIllree in an update to shareholders on Monday.
The group, which described 2017 as an “exciting year” with plenty of work streams scheduled for delivery, said the estimate confirmed it was the highest-grade mineral sand ilmenite project globally, with 17% of the raised beach area having been assessed for the resource calculation.
Bluejay highlighted an inferred resource of 23.6-million tonnes at 8.8% ilmenite in situ for the total area tested, which included a high-grade zone equal to 7.9-million tonnes at 14.2% ilmenite in situ at Moriusaq, which is the focus of the feasibility and production studies that are currently under way.
The mineral resource estimate, prepared by SRK Exploration Services, further indicated a larger exploration target, with potential mineralisation below and inland from the current drilling, of between 90-million tonnes and 130-million tonnes at an in-situ grade of between 6.3% and 8.4% ilmenite.
“There is significant potential to increase Pituffik's global ranking in terms of tonnage with upside potential available through Interlak, the offshore terrace, as well as the additional 25 km of raised beach, which have not been included in this calculation,” McIllree added.
Bluejay, which conditionally acquired Pituffik in December 2015, and assumed 100% ownership in March 2017, said the project had demonstrated the potential to be in the “top percentile of projects worldwide” in terms of heavy mineral grade.
"The work being planned for the 2017 field season should see this resource grow exponentially. Further, by removing approximately 30% of the oversize material at the dig point through screening we will be able to improve the in-situ grades by 30% prior to delivery at the concentrator,” he said.
This should allow for grades of over 20% ilmenite at the mineral separation level to be maintained for many years.
“This surpasses the conservative in-house estimates of grade and duration in our financial modelling and, when added to the fact that this material contains little to no slimes and no radionuclides and consistent ilmenite chemistry throughout the deposit, we anticipate the final economics will be compelling,” he concluded.