Bluejay Mining PLC (LON:JAY) has posted a significant upgrade to the ilmenite resource at its Dundas shoreline project in Greenland.
The mineral sands prospect now holds 96mln tonnes at 6.9% ilmenite, a 400% increase on the first estimate a year ago.
Consultant SRK calculated the estimate using a combination of auger and sonic drilling.
Dundas is one of the highest-grade mineral sand ilmenite projects in the world, believes Bluejay, with the majority of what has been identified so far located on the raised beaches at Moriusaq.
This shoreline contains 81mln tonnes in the indicated category at a grade of 6.1% plus a further 7mln inferred at 9.2% ilmenite in the surrounding areas.
A further 7mln tonnes inferred was at Iterlak East and 1mln at Iterlak West.
In addition, a new exploration target has been identified over the Iterlak Delta that might contain a further 20mln and 60mln tonnes at grades of between 6-10% ilmenite.
Elsewhere, Bluejay is assessing the shallow marine area for potential additional resources and suggested simple size separation might boost the grade by 30%.
Roderick McIllree, chief executive, said: "These results matched our best internal expectations of size and grade for the indicated resources at Moriusaq, the surprise of 2017 was the realisation that Iterlak, where mineralisation is found in raised beaches and the delta, appears to host similar-sized zones with much higher grades.”
Bluejay is working on a pre-feasibility study and permits for the project.
“We expect that the natural advantages of a homogenous material new high grade indicated resource to pin an operation around and a very interesting set of very high-grade targets to the East around Iterlak which is the main feeder zone will help the project economics in the long term.
“Coupled with the fact that this material is recognised by industry majors as being suitable for sulphate pigment and both sulphate slag and chloride slag production means we are well placed to make some big strides in the short term.”
Bluejay has cash of £15mln currently having bought the equipment necessary for material to be shipped for smelter testing.