Dundas Bulk Sample Completed and Being Shipped
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector: Mining
9 September 2019
Bluejay Mining plc ('Bluejay' or the 'Company')
Dundas Ilmenite Bulk Sample Completed and Being Shipped to Canada
Bluejay Mining plc, the AIM and FSE listed Greenland focused company is delighted to announce that the 42,000t bulk sample from its 100% owned Dundas Ilmenite Project ('Dundas' or the 'Project'), the world's highest-grade ilmenite mineral sands project, has successfully departed Greenland destined for the Port of Contrecoeur in Canada.
This material will be stockpiled at Bluejay's processing facility to undergo further refinement of up to ±10,000t of heavy mineral concentrate ('HMC') from which half (with an estimated ilmenite content of 4,500t) will be sent to Rio Tinto Iron and Titanium Canada Inc ('RTIT') for testing at their Sorel-Tracy Plant in Quebec ('Sorel') as set out in the agreement announced on 28 May 2019. Once delivered this material will undergo large scale smelter test work designed to confirm suitability for long term commercial use at this facility.
The Company engaged US based bulk commodity specialists Mid-Ship Group LLC to assist in the identification of logistic specialists capable of delivering on a project of this scale. The shipping was executed by Pangaea Logistic Solutions ('PLS') via its subsidiary Phoenix Bulk Carriers ('Phoenix'), Copenhagen based Nordic Bulk carriers ('Nordic'), pioneers in the shipment of bulk cargoes through the north west passage with stevedoring executed by Phoenix partner Guy J. Bailey Ltd from Newfoundland ('G J Bailey'). Ship-loading was completed efficiently in less than 3 days, at an average loading rate of just over 19,000 metric tonnes per day with minimal disruption. The ship-loading operation was supported by existing onsite mining equipment as well as additional systems transported in by Phoenix and owned and operated by G J Bailey. In addition to the above, loading was supported by the Company's highly skilled Greenlandic staff at its 100% owned subsidiary Dundas Titanium A/S ('Dundas'). The Company was extremely impressed with the professionalism of all contractors involved in this historic sealift. The cost-effective methods applied, loading and turnaround times achieved have all proven the viability of long-term shipping from this most northerly location in Greenland. The achievements of the entire team have set many impressive precedents from which to build on once more permanent infrastructure is installed at Dundas. Equally the preparation, loading and despatch of the bulk sample has provided the Bluejay team with invaluable experience and confidence ahead of full production and further shipments from Dundas.
The Company would like to thank this international cooperative of Greenlandic, Canadian, Danish and US partners as well as the Greenland Government for their continued support in both the organisation, permitting, execution and ultimate shipping of this history making exercise. The Company can also confirm that this is the most northern shipment of bulk cargo to be extracted anywhere in the world and reinforces the viability of future shipments from Dundas.
To view the announcement with the illustrative maps and diagrams please use the following link:
Minister of Mineral Resources and Labour, Naakallersuisut/Government of Greenland, Erik Jensen said:
"It is an important step to achieve this bulk sample shipment of ilmenite sand from Moriusaq which will be tested by Rio Tinto Iron & Titanium in Quebec. It is one of several steps to reach the final goal of starting production and creating local activities in the north-western part of Greenland. The Government of Greenland is very supportive of these types of activities and the strategy is to attract more serious business of this kind to the benefit of the local community and the country in total."
Bluejay Mining PLC CEO, Roderick McIllree said: "This is a key milestone and another significant step in the development of Dundas. This achievement also marks in history the most northerly bulk cargo ever to be extracted anywhere in the world.
"Now our focus will turn to refining this material at our pilot facility in Canada to produce around 10,000t of HMC, half of which will be sent to RTIT'S Sorel-Tracy facility in Quebec. Once delivered this refined sample will be extensively analysed to confirm suitability for large scale commercial use. As previously stated, we believe that this testing, together with RTIT's site visit at Dundas in the lead up to the extraction of the bulk sample, will prove to be a value-add as we now move to finalise the permitting application process.
"A special mention needs to be made regarding our internal team at Dundas, Hans Jensen, Carsten Olsen, Jens Lennert and Eric Schjorring, as well as many other important Greenland team members, without whom this would never have become reality. This was a complicated logistical precedent to implement and the Company thanks them for their tireless work that delivered this remarkable result.
"Greenland's global profile has increased significantly lately with recent media attention focussed on the low sovereign risk and strategic importance not only of its geographical location but the massive opportunities its untapped mineral wealth has to offer. The size and quality of that endowment cannot be denied. Bluejay have fifteen years of in country expertise, plus first mover advantage and has worked hard to place ourselves at the forefront of the upcoming strategic drive for resources. Now Greenland is receiving the wider attention and recognition it deserves we are perfectly placed to capitalise on this, given our long portfolio pipeline of globally significant projects. With two world class deposits identified in Greenland during the last 12 years', work will soon turn to preparations for our third and most exciting, The Disko Project, a 2,776km2 100% owned land holding prospective for Magmatic Massive Sulphide Nickel-Copper-Platinum-Cobalt. A huge mineralising system remarkably similar in many ways to the world's largest nickel/copper magmatic massive sulphide mine, Norilsk-Talnakh. Interestingly our already large licence holding has recently been surrounded by a ±9,000 km2 blanket licence by major mining company Anglo American, further confirming our highly prospective project pipeline. Lastly but not least is the Kangerluarsuk zinc-lead-silver project, where decades old work by Rio Tinto encountered grades of 41% zinc, 9.3% lead and 596 g/t silver.
"We are excited about the coming months and will update the market on developments across the wider portfolio in due course. Dundas is one of two large scale projects currently being assessed for development in Greenland and the Board anticipates this asset will be the next Greenland mineral project to receive an exploitation licence. We are developing and advancing projects which we believe to be of high quality, levering off centuries of Danish state sponsored exploration in one of the last underdeveloped resource regions globally. The support from the Government of Greenland for us and the international consortium put together to facilitate this bulk sample underlines that Greenland is open for business."
Steve Rzehak from Mid Ship Group said: "We are proud to be part of this history making event, we understand this shipment is the largest of its kind to be exported from Greenland. After months of dedicated work watching that Handymax sized cargo leave site on the MV Nordic Barents was enormously satisfying. We look forward to working with Bluejay on what we see as the start of a long and successful partnership."
Phoenix Bulk Carrier's Vice President & Commercial Director, Peter Koken said: "Bluejay's current pace of development is impressive. Based on their deep knowledge, expertise and conviction, Bluejay are now forging ahead with the development of Greenland's substantial mineral resources. Our group provides the logistics hardware and software that supports a successful commercialization of this type of activity. We are thrilled to be involved in this project and we look forward to serving Bluejay's needs going forward and continuing to participate in the positive development of Greenland's economy and remarkable society."
Guy J. Bailey's President Mr. Scott Bailey said: "After our exploratory site visit in July we spent the necessary time and resources to ensure our performance. I am proud to say that the ship-loading operation was executed without issue and according to plan. The shore-side support and operations of the Dundas and Bluejay teams made our job even more efficient. The Bluejay and Dundas teams are a serious group of professionals with whom we look forward to maintaining a long relationship with."
Figure 1 - Loading of conveyor belts with ilmenite-rich sand ahead of ship loading.
Figure 2 - Loading of conveyor belts with ilmenite-rich sand ahead of ship loading.
Figure 3 - Barge loading platform.
Figure 4 - Bulk carrier at berth at Dundas Ilmenite Project being filled with bulk cargo.
Figure 5 - Loading of bulk carrier. Direct shore loading should allow for significant capex reductions.
Figure 6 - In a history-making sail, the fully-loaded Nordic Barents leaves Moriusaq, for the port of Contrecoeur, Canada.
In addition, Bluejay is pleased to announce that the Company has today launched a new corporate website which can be found at the following address: www.bluejaymining.com.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
For further information please visit http://www.bluejaymining.com or contact:
Bluejay Mining plc
+44 (0) 20 7907 9326
SP Angel Corporate Finance LLP
+44 (0) 20 3470 0470
SP Angel Corporate Finance LLP
+44 (0) 20 3470 0470
Hannam & Partners (Advisory) LLP
+44 (0) 20 7907 8500
Hugo de Salis
St Brides Partners Ltd
+44 (0) 20 7236 1177
St Brides Partners Ltd
+44 (0) 20 7236 1177
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