# Bluejay Mining plc Potentially world class Pituffik Titanium Project – Results

- Link: https://www.directorstalkinterviews.com/bluejay-mining-plc-potentially-world-class-pituffik-titanium-project-results/412725906
- Published: 2017-03-21T10:28:00+00:00
- Author: Giles Arbor

**Bluejay Mining plc ord 0.01p** (LON:JAY), the AIM and FSE listed exploration company
with projects in Greenland and Finland, has today announced its interim results 
for the six months ended 31 December 2016.

Highlights

· Advancing the Pituffik Titanium Project in Greenland towards large scale production
targeted to commence in 2018
 · Results continue to demonstrate uniquely high in-
situ grade of the deposit, underpinning potential to be within the top percentile
of projects globally with respect to heavy mineral grade – maiden resource due shortly·
Delivery of a proof of concept bulk sampling programme on track for H2 2017 · Continued
progress made on permitting of Pituffik – exploitation licence targeted for lodgement
H2 2017 · Appointed several accomplished professionals in the ilmenite sector to
advance offtake discussions and market research · Additional upside opportunity –
acquired two polymetallic assets in Greenland to be advanced once Pituffik is cash
flow positive: o 194sq km Disko-Nuussuaq Magmatic Massive Sulphide nickel-copper-
platinum project o 107sq km Kangerluarsuk Sed-Ex lead-zinc-silver project · Successful
placing of new and existing shares to raise a total of £8.5million: o Funds of over
£5 million attributable to the Company for the development of Pituffik; and o Existing
shares were made available to new institutional shareholders by Western Areas · 
Post-period-end acquired 100% of Pituffik (from 60.67%) and changed Company name
to Bluejay Mining plc (previously FinnAust Mining plc)

Chairman’s Statement

It is my pleasure to be able to report to shareholders of such a positive outcome
on the 6 months to December 2016. Bluejay owns the potentially world class Pituffik
Titanium Project in Greenland (‘Pituffik’ or the ‘Project’) and we are pleased with
progress made to date. Pituffik demonstrates many of the characteristics necessary
for a globally significant ilmenite deposit with the maiden resource expected soon.

The six months to December was a solid period for the Company, with multiple work
programmes completed both on and off site that continue to demonstrate the significance
of Pituffik. The 2016 field season saw more than 500 holes drilled on and offshore
and a metallurgical sample shipped to IHC Robbins in Queensland for pilot plant 
test work. We have continued the advancement of the Environmental Impact Assessment(‘
EIA’) and Social Impact Assessment (‘SIA’) studies with no major issues having been
identified to date, and ongoing Stakeholder engagement of the local communities 
indicates support for development. All drilling samples have now been processed 
by SGS Laboratories with SRK Exploration continuing to provide quality assurance/
quality control services and analysing samples to deliver the initial mineral resource
for the Project. Overall it was a very productive period and one that we hope shareholders
will be pleased with.

All current work programmes are now nearing completion with the application for 
an exploitation licence being the next step in the evolution of the Project. It 
is expected that this will be lodged in H2 2017.

During the period, the Company managed to secure the services of several accomplished
professionals in the ilmenite sector and set the stage for an exciting 2017. Work
will continue on offtake and sales research, permitting for our activities on site
and delivery of a proof of concept bulk sampling programme in H2 2017. We believe
Pituffik is unique in many respects, with the homogenous chemistry of the ilmenite
over the entire Project area, the low oxidation and impurity levels and the uniquely
high in-situ grade of the deposit all providing a solid platform from which to progress
the Project in 2017.

Work to date indicates that the mineralisation at Pituffik is prolific and with 
more than 30km of beach both on and offshore, the potential of increasing the resource
over time is significant. Given the potential of the Project the Board decided to
proceed with exercising the Company’s Option to acquire 100% of the Project from
60.67%, which was achieved in March 2017. At the same time the Company changed its
name to Bluejay Mining plc.

Corporate Strategy

Pituffik is our primary project and we are fully focused on developing a commercial
operation. However, given our strong understanding of Greenland’s prolific resource
potential, gained from many years of operating in-country, we have a vision to become
a significant, multi-project resource player in the Nordic region. With this in 
mind, we are pleased to have bolstered our asset base during the period via the 
acquisition of Avannaa Exploration Limited. This transaction enabled us to take 
control of the 194sq km Disko-Nuussuaq Magmatic Massive Sulphide nickel-copper-platinum
project (‘Disko’) and the 107sq km Kangerluarsuk Sed-Ex lead-zinc-silver project(‘
Kangerluarsuk’). Further details on these assets are provided below but in terms
of strategy, we intend to commence exploration activities at these assets once Pituffik
is cash flow positive.

We also hold polymetallic assets in Finland, which have been under review for the
past six months. Extensive analysis has been undertaken of both historic and company-
data, which has refined our understanding of this very extensive land package and
with more focused targets in hand, we are assessing the potential to conduct further
drilling which could provide us with strengthened optionality going forward.

The Pituffik Titanium Project

150 sq km in North West Greenland

Pituffik sits within the “Thule black sand province” in North West Greenland, which
is comprised of coastlines several hundred kilometres long that contain both ilmenite
and magnetite-rich regions. Bluejay is targeting the localised higher concentrations
of ilmenite and has defined two primary project areas, Moriusaq and Interlak. Three
target areas, namely the Raised, Active and Drowned beaches, have been identified
along 80km of coastline and importantly the highest-grade material from the entire
region to date has been identified within Bluejay’s licences.

· Active Beaches – refers to the area seaward of the frontal dunes, including the
beach, tidal zones and surf zone – historically samples from this area have achieved
70% ilmenite by weight;

· Raised Beaches – contain ilmenite accumulations over widths of more than 1km, 
of unknown depths, along more than 20km of coastline; and

· Drowned Beaches – the areas seaward of active beaches which contain larger volumes
of ilmenite bearing sediments located in less than 10m of water – expected to be
very high grade ilmenite.

We are focused on capitalising on the significant resource potential of Pituffik
by developing a commercial scale mining operation. We have identified the opportunity
to deliver production in the relative near term via a dredging operation within 
the marine environment. This will be conducted using standard industry equipment
and practices and will be dependent on the development of effective logistics and
processing routes. It is our intention to trial a bulk sampling campaign in H2 2017,
which will include dredging a small amount of material from the drowned beach environment,
thus providing the market and industry with sufficient comfort of our ability to
execute on this exciting opportunity. However, before we move into this phase, we
need to complete a resource programme, a SIA and an EIA, once complete we will apply
for the exploitation licence; we expect to commence the exploitation licence application
process in H2 2017 subject to receipt of the resource, SIA and EIA.

To facilitate this, in July 2016 we commenced a work programme to deliver a JORC
resource. The Geological Survey of Greenland and Denmark (‘GEUS’) designed the programme
in consultation with SRK Exploration who we appointed to undertake the analysis 
and provide calculations. We have been very pleased with GEUS’ rapid execution from
July to September 2016, when they drilled more than 500 auger and vibracore holes
and conducted extensive trenching and sampling across the Project area.

We expect to be in a position to publish the resource soon and work completed to
date has validated our previous categorisation of two distinct project areas, which
will become the focus with respect to future studies. These are:

· Moriusaq Bay and surrounding area, a low-medium tonnage target that encapsulates
the bay and proximal active and raised beaches with grades in some areas estimated
to be in excess of 85% ilmenite; and

· Interlak, an area dominated by huge deltaic deposits with associated adjacent 
high grade beaches with grades in some areas estimated to be in excess of 70% ilmenite
occurring as thick sedimentary bands.

Our SIA and EIA are both progressing to plan in association with key industry and
regional bodies. We have received authorisation for both assessments and look forward
to providing these results in due course.

Metallurgical testwork has also been a primary focus for Bluejay and the final results
will form a key element of our internal feasibility study. We are very happy with
the early results received from the work to date, which has demonstrated the ability
to produce a commercially pure, high-grade concentrate via gravity-separation. This
processing route is highly efficient in comparison to the path required for existing‘
hard rock’ sources of ilmenite and is expected to positively affect capital and 
operating requirements moving forward.

We are now refining the process design; in October 2016, the Company engaged Allied
Mineral Laboratories (‘AML’) to complete the next phase of process design and optimisations
for large scale exploitation, and identify further refinements of the gravity circuit
to generate a concentrate of the titanium rich minerals at Pituffik. This consisted
of representative samples being submitted for Scanning Electron Microscope analysis(‘
QEMSCAN’) to determine mineral species present, grain size and degree of liberation,
as well as other identifying physical characteristics. In turn, the results were
used to prepare a liquid separation process and this successfully produced a very
pure ilmenite concentrate. Analysis of the potential ilmenite product from this 
concentrate has continued to suggest its suitability for direct use in the sulphate
process to upgrade sulphate slag and chloride slag. Detailed chemical analysis so
far completed also indicated low levels of deleterious trace elements and beneficial
iron oxide (FeO/Fe2O3) ratios, which is very positive. Looking ahead, bulk metallurgical
samples collected from raised and active beaches during the 2016 field season have
been dispatched to IHC Robbins in Brisbane as part of a design and pilot plant package.

Given our firm focus on production, we are keen to secure an offtake partner and
have already commenced a marketing process with this in mind. Firstly, we conducted
a review of the potential markets and customers for our product. Detailed market
research indicated that global sulphate feedstock deficits are expected from 2018
onwards and the Company believes that this, coupled with reduced global inventories,
should support ilmenite prices in the short to medium term. Additionally, we have
appointed Titanium Industry Global Advisory Pte Ltd (‘TIGA’) as marketing advisor
to the Company. TIGA is an advisory firm specialising in providing strategic and
commercial direction to the mineral sands industry with a focus on titanium dioxide(‘
TiO2’) feedstocks. Bruno Cavalancia, Managing Director of TIGA, a mining professional
with over 25 years of experience across the mineral sands industry, will help guide
the Company closer to commercialisation and strategic partnering for Pituffik.

TIGA is another appointment the Company made during the period to support our progress.
We were pleased to welcome Hans Jensen to the Company as Chief Operating Officer
and Eric Sondergaard as Manager of Geology. Their appointments have had an immediate
positive impact on the work programmes currently being designed and implemented,
and given their strong experience of the country and projects of a similar kind,
we see their engagements as a strong endorsement of Pituffik’s potential.

Additional Projects

In October 2016, the Company announced the 100% acquisition of Avannaa Exploration
Limited, a mineral exploration company with several advanced projects in Greenland’s
south-west. Two of the projects, which have previously had more than US$50 million
of technical work undertaken by blue chip mining houses, are of particular interest:

Disko-Nuussuaq Magmatic Massive Sulphide nickel-copper-platinum project (‘Disko’)

194 sq km in south-west Greenland

The magmatic copper (‘Cu’), nickel (‘Ni’) & platinum group elements (‘PGE’) project
at Disko & Nuussuaq in West Greenland has been the subject of more than three decades
of exploration; Cominco commenced activity in the 1980s, followed by Falconbridge
in the 1990s and Vismand Exploration in the 2000s, all making the positive decision
to invest in their discoveries.

Initial exploration identified strong similarities to Norilsk in Siberia and this
model was confirmed when a 28 tonne boulder of massive sulphide of Ni, Cu and PGE
bearing massive sulphide was identified on the licence area. This boulder, discovered
by Falconbridge in 1994, assayed at 7% Ni, 3% Cu, 2ppm PGE as an inclusion in a 
dyke interpreted to intersect the mineralisation at depth. The boulder of massive
sulphide can be seen in the foyer of the Danish Geological Museum in Copenhagen 
and is the centrepiece of its mineralogical collection.

Picrite lavas are hot melts derived directly from the Earth’s mantle and constitute
the main source for nickel and PGE’s globally as well as an important source of 
copper. West Greenland Igneous Province, comprising Disko & Nuussuaq, contains onshore
accumulations of picrite lavas of a similar scale to the Siberian flood basalts 
that house the super-giant Norilsk Ni-Cu-PGE. Similar to Norilsk, analysis demonstrates
that sulphide segregation has occurred at Disko where enormous volumes of ice melt
have interacted with sedimentary sequences high in sulphur en-route to surface and
have precipitated all contained Ni, Cu and PGM within the conduit system. These 
metal accumulations form the Ni, Cu and PGM exploration targets at Disko.

Kangerluarsuk SedEx lead-zinc-silver project (‘Kangerluarsuk’)

107 sq km in south-west Greenland

Kangerluarsuk is located in a major Palaeo‐Proterozoic sedimentary basin with abundant
lead-zinc (‘Pb‐Zn’) showings, including the historic Black Angel Pb‐Zn mine and 
distinctive SedEx style mineralisation (Pb-Zn) exposed around the basin margin.

The area comprises the strongest zinc stream sediment anomaly cluster in Greenland
in a geologically favourable, starved sub-basin. Geological and structural mapping
of the basin with uninterrupted rock exposure allowed the creation of accurate structural
models, including growth faults likely to provide a conduit for mineralising fluids.
This model, coupled with conductors defined by ZTEM and soil geochemistry, has defined
three targets for drilling at a later date.

Financials

As is to be expected with an exploration company, for the six month period ended
31 December 2016, the Company is reporting a pre-tax loss of £1,035,922 (six months
ended 31 December 2015: £239,335). The Group’s net cash balances as at 31 December
2016 were £4,474,762 (six months ended 31 December 2015: £334,661).

Change of Accounting Year End

Bluejay has changed its accounting reference date from 30 June to 31 December, with
immediate effect.

As a result of the change, the Company’s reporting calendar will be as follows:

· Unaudited results for the six months ended 30 June 2017 to be announced no later
than 30 September 2017.

· Audited results for the 18 months ended 31 December 2017 to be published no later
than 30 June 2018.

Thereafter annual and interim reports will be published each year, in accordance
with the AIM Rules for Companies, for the 12 months to 31 December and the 6 months
to 30 June, respectively.

The Board considers that the change of the accounting reference date better aligns
the Company’s reporting period to the field season at its primary project, Pituffik.

The Board does not foresee any material financial implications on the Group as a
result of the change in accounting reference date of the Company, nor is there any
other matter of significance that needs to be brought to the attention of the shareholders
of the Company in this regard.

Outlook

In summary, Pituffik represents a unique opportunity for both the industry and the
market alike and we look forward to quantifying the scale of our deposit via the
publication of a maiden JORC resource. This, along with the results from our environmental
and social impact studies will form the basis for our application for an exploitation
licence and to deliver a bulk sampling campaign later this calendar year. With offtake
discussions also underway, 2017 has the potential to be defining for your Company.

I would like to thank our Board, management team, advisers and, most importantly,
our shareholders for their continued support.

Graham Marshall

Bluejay Mining plc ord 0.01p Chairman

21 March 2017

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