BlueJay Mining PLC (LON:JAY) is expected to have a “bright future” for its Dundas titanium project in Greenland, according to First Berlin Equity Research GmbH which has started coverage on the stock with a 'buy’ recommendation and 21.8p price target.
In a note, the German broker's analyst Simon Scholes said: "We visited Bluejay's flagship Dundas Titanium Project in northwest Greenland a few days before shipping a 42,000-tonne ilmenite bulk sample (Ilmenite is a titanium-rich mineral) to Canada for concentration and subsequent assessment by potential customers, including Rio Tinto."
He pointed out that, during September, BlueJay submitted to the Greenlandic authorities a permit application for the project, which included a full pre-feasibility study.
Scholes said: "The homogenous, high-grade, coarse-grained and weathered nature of the Dundas ore body simplifies recovery and, despite the harsh high-market operating environment, is expected to have a bright future for the project."
The Dundas project, the world's highest-grade ilmenite mineral sand deposit, is estimated to hold 117mln tonnes at 6.1% ilmenite.
BlueJay shares were up 6% to 10.66p on Thursday afternoon.