“Pituffik is one of the most economically promising mineral projects we have ever had the privilege to visit. We are reviewing our model and will update the market in due course.” This is according to SP Angel analyst John Meyer who has recently returned from a site visit to Bluejay’s Pituffik titanium project in Greenland.
“Bluejay has already proven that its Pituffik project in Greenland is the highest-grade mineral sand ilmenite project globally and as announced, its 2017 field program is exceeding expectations as it looks to demonstrate the significant size of the asset, secure an off-take partner and define a viable logistics solution, with commercial production on track to commence in 2018.”
Bluejay Mining recently announced that drilling, bulk sampling and feasibility and permitting programs are now underway at Pituffik.
Drilling underway – focus is to expand and upgrade the current resource of 23.6 Mt at 8.8% ilmenite, which is independently proven to be the highest-grade mineral sand ilmenite project globally. The emphasis is on validating the significant tonnage potential along the additional 25 km of raised beach licence area not currently included in the resource as well as the existing resource.
35 holes completed within one week, in an extensive program using sonic drilling to improve and extend the current resource. To date ilmenite rich sediment has been observed in all drill samples, confirming the rich regional potential and extent of mineralisation across entire onshore 30 km licence, areas of the raised beach remain open at depth due to only having 30 m of drilling equipment on hand.
Auger drilling completed to the east and west of Moriusaq and will move to Itelak shortly. To date ilmenite rich sediment has been observed in all 35 holes drilled, further confirming the regional extent of mineralisation across entire onshore licence area.
Proof-of-concept bulk sampling programme commenced – material to support ongoing offtake discussions. The first batch, containing 250 t ilmenite rich run-of-mine product, has been shipped from Pituffik.
Based on visual estimates the ilmenite concentrations in the bulk sample are better than expected.
An additional 250 t bulk sample destined for separation to provide ilmenite concentrate for customer analysis purposes is now advanced and expected to be completed within a similar timeframe.
Bathymetry survey underway to enable a robust assessment of exploration options. Completion expected in Q3 2017. It is designed to identify possible exploration channels both to and from Pituffik as well as optimal fixed-point mooring locations for Handymax sized bulk carriers adjacent to the Moriusaq area. Near shore surveying also completed for ship loading option study underway.
Orbicon Arctic A/S on track to complete the final baseline sampling program for the Environmental Impact Assessment (EIA) by end of August 2017.
Pre-consultation period for EIA and Social Impact Assessment (SIA) studies now complete. All stakeholder comments (12 stakeholder responses in total) incorporated into final Terms of Reference (TOR) and resubmitted to Government for final approval.
Once TOR approval has been received, the company will finalise the EIA as part of the exploitation licence application process. Both the EIA & SIA are advancing well.
Feasibility study due for delivery H2 2017. Operational unit cost is low and project economics appear robust based on internal modelling.
The company is well-funded to maintain active development program – current cash position of over £5.2 million with majority of work programs prepaid.
Bluejay CEO Roderick McIllree said, “I am delighted to report that our 2017 work program is now well advanced. With drilling started, bathymetry survey commenced, and licencing application modules such as the EIA, SIA & stakeholder engagement all progressing as stated earlier this year it was very pleasing to see the onsite team implementing and managing multiple work programs in an efficient and effective manner.
“We have already proven that Pituffik is the highest-grade mineral sand ilmenite project globally. Now we are focussed on demonstrating the significant size of the asset, securing an off-take partner and defining a viable logistics solution to ship our premium quality ilmenite product, as we remain on track to commence commercial production in 2018.
“Despite having only recently commenced the onsite part of the work programs, Pituffik continues to exceed our expectations, with early results already confirming the significant commercial potential of our project. Indicative of this is the first hole drilled on the active beach area immediately east of the current resource limit, where we intersected what appears to be extremely high-grade ilmenite bearing material throughout the entire 5.5 m hole depth. This is a remarkable outcome; it’s clear we have a project of unique and special value and I am convinced that the resource upgrade expected Q4 2017/Q1 2018 will confirm Pituffik as being globally significant in terms of tonnage as well as maintaining its position as being the highest-grade project globally.”
