Bluejay Mining Share Discussion Threads

[astralvision] 03/4/2018 18:31

I don't think a Panamax can take 400,000t, more like 40,000-50,000.

[squiresquire] 03/4/2018 17:30

Can a Panamax really carry 400,000 tons? It seems an awful lot.

We were in Panama two years ago at Christmas, they were having a debate on TV about how the new lock was leaking. They inferred the contract was only given to the builders because they were mates with the president.

The next day El Presidente got annoyed and had one of the journalists arrested. El Presidente then went on TV and said the builders and he were not friends and had only a small business interest in the past. He then went on to say that though the new lock did leak a bit, the leak was only very small and in fact it only leaked at all when the lock was empty.!! True.

[25wbh] 03/4/2018 17:07

Although I didn't go to Quarry School I played cricket there in the Beatles days,There was a huge tree in the slips and if you sliced the ball it came back like a rocket,u couldn't make it up!

[snowyflake] 03/4/2018 17:02

Managed a scoucer band once - got them a good recording deal, Queen/Cars etc producer and they still could not make a go of it!! Funny old world.

[25wbh] 03/4/2018 16:54

I agree,also being a scouser helps my humour and mischief,lol

[citytilidie] 03/4/2018 16:52

Anyone that shorted JAY this morning is already losing money, and with a major JORC announcement due, they will already be feeling very very twitchy and nervous. Sleep well....... I know we all will being nuts deep

[snowyflake] 03/4/2018 16:47

25wbh - I hope that it helps you guys. None of us FAMily as macca puts it wishes you private investors any harm - if anything we should all be there to help one another.

[25wbh] 03/4/2018 16:24

Snowyflake, good research from rampair,have posted it on the Alba board

[shutittrev] 03/4/2018 16:22

Nice one Ramps.

[snowyflake] 03/4/2018 16:14

stephen et al from Alba board You should try and do the same research as rampair has done

Also look at the Bluejay website where you will find details of the EIA/SIA work done to date In fact there is pots of information on their website

Then compare to Alba's website All your board have managed to do is gather some samples which should give some insight as to why there are valuation discrepancies

[moreminer] 03/4/2018 14:57

Well done Rampair!
Thanks, almost time to receive our first drink of the day, it seems a deserved one!

ps, I would almost ask, why don't you write the JORC??

[rampair] 03/4/2018 14:47

For those who find it hard to use links:-)


BlueJay are making good progress towards the start of production next year.
 Valuation: we are raising our NPV valuation to 37p/s today in response to the high
grade and purity levels of BlueJay’s ilmenite concentrate product.
 Production: While BlueJay plans to start production next year we assume sales start in 2020. We escalate the mining rate from 1mtpa in 2020 to 2mt in 2021, 3mt in 2022. We then see a further jump in production to 5.5mtpa from 2026.
 Capex: we assume a $60m capital cost to start followed by a further $100m for the second phase expansion. We assume a 10% discount rate by way of standardisation. The project gives a 43% IRR on these metrics.
 Pricing: We assume BlueJay could receive $200/t for its product, up from $180/t previously though management reckon they will get higher price levels.
 Upgrading: we have also assumed the upgrading of material at the first sieve to 18.5%. This has the double benefit of raising the input feedstock grade reducing costs and improving throughput rates.
 Feasibility Study: A number of consultants are working on more detailed plans for the process plant and related infrastructure.
 Costs: we assume relatively high mining, processing and loading costs for a dredging operation given its location in the north of Greenland. These costs should come down as the operation proves itself. We assume $3.25/t for mining, $5.0/t for processing and $4.5/t for loading. The loading cost is particularly high given that it should simply require a longish conveyor belt to reach a ship parked in the Fjord, though it should cover the use of a tug boat to manage passing ice bergs.
 Offtake: management are in Hong Kong presenting at the ‘TZMI’ Titanium and Zircon Congress for mineral sands producers. We expect discussions to continue on offtake with Chinese producers and assume 60% of BlueJay’s Ilmenite concentrate may be sold in China with the rest to be sold in the West.
Conclusion: BlueJay is fortunate to have discovered the World’s largest, known, high-grade, ilmenite mineral resource. The sheer scale and consistency of the high-grade mineralisation is extraordinary and while the location in Greenland presents some challenges these appear relatively easy to overcome from an engineering and production perspective.
*SP Angel act as nomad and broker to BlueJay Mining
Extraordinaryhighgrade:BlueJayMininghasanextraordinaryhighgradeilmenite project in the north of Greenland. The geological team have largely proven the extent, consistency and grade of the project with the focus now on details of how best to mine and process the mineral sands.
 Engineering solutions: The very high grade and the coastal location are a potent combination when it comes to mining and processing. Dry mining is an option but dredging in the near shore environment looks better with bulldozers to be used to push ilmenite material towards the dredge. Screened/sieved ilmenite will then be piped to a centralised process plant and storage facilities.
 Dewatering should occur naturally with much of the water in the ilmenite coming out under the sheer weight of the mineral sand in storage. Any further dewatering could be achieved simply with filters.
 Ship loading should be via conveyor onto ships waiting in the Fjord. Ships are able to come close to shore due to the natural gradient of the Fjord making construction of ship loading facilities relatively simple.
 Drilling:BlueJayusedanewlyacquiredSonic-drillrigthroughthepastfieldseason as recommended by SRK Consultants is working well and shows mineral sands to a depth of over 30m in some areas exceeding the length of available drill rods and casing. The Sonic rig is reported to be working well and to be drilling off five to six holes per day depending on depth. We witnessed the first test drill hole on the recent site visit to Moriusaq Bay, Greenland.
 Resource: This has dramatically exceeded our expectations at 23.6mt grading 34.5% total heavy mineral sands and 8.8% ilmenite in-situ in the inferred resource.
 High-grade zone: includes 7.9mt grading 14.2% ilmenite at Moriusaq. The feasibility study is focussed on this part of the resource. We expect this high-grade resource to expand in scale to >100mt as further work expands our knowledge of the deposit in the shallow marine and near-shore environment.
 InterlakDelta:theInterlakdeltalookslikeatrulyexceptionalilmenitedeposit.We expect Interlak may contain a much larger, high-grade resource to substantially add to the high-grade portion of the mine. This could host >1bnt of high-grade ilmenite material and justify a second, separate operation.
 Consistency: drilling now shows remarkable consistency in the density and grade of the mineral sands deposited by nature. The ilmenite rich sands appear to be equally well distributed at depth with no or very few apparent layers of rocks, aggregates or other minerals seen in preliminary drilling. We now expect to see this extended as the high-grade ilmenite is so much heavier than any other mineral causing other minerals to be washed away by waves and storms through the deposition process.
 Bulk sample: BlueJay shipped some 500-600t of sieved concentrate material for storage and for further processing for consumer testing.
 Purity: the amazing thing about Pituffik is the apparent purity of the ilmenite mineral sands and the near total lack of any other material, particularly clay which bungs up processing at many other mineral sands operations.
 Nature has done an amazing job in sorting out the heavy mineral sands from the lighter material and this can be very clearly seen from the air where rivers show plumes of natural sand being washed down the shoreline to other beaches leaving a mass of ilmenite sand on Bluejay’s licenses at Pituffik. We note, other beach sands in the region do not appear to have similar areas of ilmenite concentration.

[rampair] 03/4/2018 14:36

From the most recent (November) SPAngel report is this estimate
“Production: While BlueJay plans to start production next year we assume sales start in 2020. We escalate the mining rate from 1mtpa in 2020 to 2mt in 2021, 3mt in 2022. We then see a further jump in production to 5.5mtpa from 2026.”

That’s serious revenue both for a Greenland Govt & Income for JAY.
It gives a good idea as to why the company has its valuation.

[rampair] 03/4/2018 13:56

John, until full details emerge on which customers are requesting what ,we are only guessing - in that spirit a Panamax uses 12m of water Draught, a Handymax carries
quite a similar Quantity but requires less
Draught.
We have an exploration license that covers
the drowned beach that is roughly down 20m
This is a high value ilmenite & it’s worth noting that this is not the case elsewhere.
As for cargo carried, it’s really why these things take so long! I expect that
once we can work out which comes first the
Pier could be at Iterlak perhaps and the Tombolo at Moriusaq could be a loading
Point as well. With Daylight being 24 hours a decent quantity could be handled
- this is where you have to go to the net
to find out figured, I would expect to
enter the market slowly and build to
demand required. Certainly there was talk of very substantial quantities
It was in the millions. I guess it’s demand led and regulated by the ship movements allowed by Greenland.
R

[citytilidie] 03/4/2018 13:27

Stephen, the clangers and Rayrac must have come from Align's subscribers. They mustn't have been with him that long as they all would have lost a shed load of money by now if they had followed his tips. Firstly he already has a large position it in before he tips it (front running) and then again doesn't tell his subscribers to sell a stock either before he has already sold his own. You can tell by their posts that they haven't got a clue.

[moreminer] 03/4/2018 13:26

Hello JohnVeals, Yes, the quistion seems legit.
I leave it to our Rampair to answer.
He is the genius on this board. Cheers

[johnveals] 03/4/2018 13:17

I would repeat, this is a genuine question and is not trolling.

[moreminer] 03/4/2018 13:13

Jeez, an infesting Troll attack! Where is my anti-troll spray!
Stephen, theclangers, now rayrac, who next!

[maccamcd] 03/4/2018 13:06

Happy 8th birthday Stephen!Run along to the Alba board now pls mate.Captain Fantastic is ready to start your party..

[rayrac] 03/4/2018 13:06

Market cap £206m! For what? It’s producing nothing and the net asset value is 2.6p per share!

You do the maths.

[snowyflake] 03/4/2018 13:05

Enjoy Stephen but Alba is not for me. GL.

[stephen2010] 03/4/2018 12:59

Snowflake. You need to look into ALBA's other cash generative assets, they are not a one trick pony ;) Funding will be no issue in Greenland and ALBA have the advantage of mirroring bluejay.

[theclangers] 03/4/2018 12:54

Thats nice, looks like the share price has done well climbing so high. Looks a long way down though! hope the foundations are not built on black sand