The AIM-listed firm said the updated JORC compliant mineral resource for the project was now 101mln tonnes at 7.1% ilmenite (in-situ), with higher grade portions at various cut off grades of 31.2mln tonnes at 10.7% ilmenite using a 3.5% cut off and 16mln tonnes at 12.9% ilmenite using a 4.5% cut off.
READ: Bluejay Mining updates on environmental and social impact assessments as pre-feasibility study continues at Dundas
The new resource, which covered the Moriusaq area of the project, would replace a previous 2018 resource model and is expected to add positively to project economics ahead of the completion of an optimised pre-feasibility study (PFS), expected in the first quarter of 2019.
BlueJay added that in-situ slimes were now estimated to be lower at 4.4% compared to 4.8% previously, which would benefit the operation from a mineral processing standpoint.
The company also said the results “clearly” indicated “the strong possibility of a large and long-life operation with obvious expansion potential”.
Roderick McIllree, chief executive of BlueJay, said the company expected that resource updates for two other areas of the project, Iterlak and Iterlak East, would “add significant additional tonnage” to the project's estimates.
He added that the company had also identified “a simple and low-cost processing route” that could remove around 30% of oversize material prior to processing, improving feed grades by up to 30%.
The Interlak area estimates are expected to be updated in the first quarter of 2019, with an application for an exploitation license to be lodged in the same year.
In lunchtime trading Monday, BlueJay shares were up 0.2% at 12.3p.
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