Greenland grants Bluejay exploitation licence
The government of Greenland has granted dual-listed Bluejay Mining an exploitation licence for the Dundas ilmenite project, allowing the company to progress towards procurement, construction and ilmenite production.
The licence, which is valid for 30 years, grants Dundas the right to the ilmenite resource.
"The extendable 30-year licence allows us to now implement the initial 440 000 tonnes ilmenite concentrate per annum operation and we anticipate reaching a commercial agreement very soon with a large multinational commodities group for Dundas product, allowing us to move further forward towards production,” said CEO Rod McIllree.
"The ilmenite product market is very robust currently with a clear and strong upward price trend forecast to continue for several years to come. This tightening of supply and increasing price forecasts provides a perfect platform to now bring online one of the world's great deposits of titanium,” he added.
The current prefeasibility study (PFS) mine life is 11 years and is comprised of an onshore mineral reserve of 67-million tonnes within a Joint Ore Reserve Committee-compliant indicated mineral resource of 117-million tonnes.
Bluejay is completing an optimisation study, which should enhance the economics of the project. The PFS for Dundas was established on a small portion of the identified mineralisation and should eventually allow for many decades of mine life to be added.
The current capital expenditure is estimated at $245-million. Optimisation of the ore sorting and magnetic separation should reduce the estimate, analysts at SP Angel said in a note.
The analysts also forecast that the optimisation study could reduce operating costs to under $100/t. The PFS estimated costs $6.7/t for the mine and a total of $112.8/t of ilmenite concentrate.
“Bluejay’s timing is immaculate given industry concern over the next generation of ilmenite projects. It is also possible that some production might start ahead of the major project construction due to ongoing demand for feedstock,” said SP Angel.
Shares in Bluejay surged 14% to a 52-week high of 13.97p a share on Monday.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation