Bluejay Mining PLC Dundas Permitting Update (1413I)

TIDMJAY

RNS Number : 1413I

Bluejay Mining PLC

22 November 2018

Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector: Mining

22 November 2018

Bluejay Mining plc ('Bluejay' or the 'Company')

Dundas Permitting Update

Bluejay Mining plc, the AIM and FSE listed company with projects in Greenland and Finland, is pleased to provide a permitting update on its flagship asset the Dundas Ilmenite Project ('Dundas' or 'the Project') in Greenland, the world's highest-grade mineral sands ilmenite project.

   --    Environmental Impact Assessment ('EIA') three-year field work studies are now complete 

-- Social Impact Assessment ('SIA') data collection and collation to be completed January 2019 - high degree of support received to date from all stakeholders

-- The Company will now submit these technical reports in preparation for the final EIA submission to the relevant authorities for review

   --    Optimised Pre-Feasibility Study ('PFS') continues and is on track for completion Q1 2019 
   --    Exploitation application will be lodged soon thereafter 
   --    Additional developmental updates expected before year end 

Bluejay CEO Roderick McIllree said, "We are extremely pleased with the findings of both the EIA and SIA studies at Dundas. These reports are an integral part of the permitting process, and along with the PFS, these multiyear assessments are expected to demonstrate the simple and increasingly uncontroversial nature of our proposed operation. This, together with the revised optimisations, will strengthen the already compelling economics of the Project and will provide further confirmation of an economically attractive high-grade ilmenite operation.

"We have been working with the Government in setting the standard for resource development in Greenland, the benefit of which will be realised from the extended assessment process. This lengthened study period has enhanced the understanding of Dundas and pre-empted any stakeholder concerns. This should translate into a high degree of support for the Project, which is expected to constitute a new and sustainable operation that will benefit all stakeholders.

"With the final submission and publication of the EIA and SIA in the coming months and the completion of an optimised PFS next quarter, we are now in the final stages of permitting. Although the field season is now concluded, we anticipate additional updates for shareholders before year-end which will further demonstrate the attractiveness and value of the world's highest-grade ilmenite sand project."

Environmental Impact Assessment

All environmental fieldwork and data collation for the EIA has been completed. The studies and the EIA were carried out by Orbicon Arctic A/S ('Orbicon'), which has strong expertise in environmental studies and permitting related to mining operations in Greenland. The EIA related activities concluded three years of continuous environmental investigations, which under normal conditions usually only require two-years of sample collection and baseline survey. Due to the limited existing understanding of the biosphere in this environment and also to consider the natural variation year on year, both the Company and regulators agreed best practice would be to undertake surveys over a three-year period. This is anticipated to assist in the assessment of the application and approval process.

The environmental field work for the EIA, carried out both on land and off shore, included extensive studies of the biodiversity of the development area. The land activities included mapping of plant communities and breeding bird colonies, extensive off shore aerial surveys during the spring thaw and winter freeze. These focussed on monitoring migrating white whale, narwhale and walrus along the west coast. Additionally, the seafloor was subject to extensive studies including sampling of mussels and other seafloor organisms as well as underwater video footage.

To determine the natural background level of metals and other elements in organisms in the development area, samples of plants, lichens, sea weed, and fish were collected, which will form a reference for future monitoring when mining commences.

During the re-scoping of the processing method, which came about through extensive dialogue with both logistic providers as well as potential customers, the EIA studies were amended to include these optimisations.

These amendments were completed in close dialogue with the Greenlandic Authorities represented by the Mineral Licence and Safety Authority, the Environmental Agency for Mineral Resource Activities and its advisors, Greenland Institute of Natural Resources and the Danish Centre for Environment and Energy.

An Archaeological survey over the licence area was also completed during the 2018 season; the results of which will be included in the final EIA report. This survey was undertaken by the Greenland National Museum & Archives.

All the collected information has subsequently been analysed with results currently being documented in technical background reports. The technical components of these studies will shortly be submitted to the Greenland authorities for review.

The completion of these studies and the information derived from them indicate limited environmental concerns from what is a simple gravity separation process.

Social Impact Assessment

The studies relating to the SIA process have been undertaken by NIRAS Greenland A/S ('Niras'). Niras have a deep and broad understanding of Greenland as well as extensive experience in the preparation of SIA studies. The technical background reports, which form the baseline for the SIA have now reached completion and will be shortly submitted to the authorities for review.

With the PFS also now nearing completion, the last remaining SIA related components, which include final stakeholder interviews will be finalised in the coming months.

As with the EIA, the optimisation of processing methods as identified in the PFS will lead to minor modifications related to the SIA. However, the SIA report will still cover the same topics as described in the Terms of Reference which has already been approved by the Greenlandic Authorities.

The Company anticipates additional updates for shareholders before year-end.

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.

**ENDS**

For further information please visit http://www.titanium.gl or contact:

 
 Roderick McIllree    Bluejay Mining plc            [phone] 
                      SP Angel Corporate Finance 
 Ewan Leggat           LLP                          [phone] 
                     ----------------------------  --------------------- 
                      SP Angel Corporate Finance 
 Soltan Tagiev         LLP                          [phone] 
                     ----------------------------  --------------------- 
                      Hannam & Partners Advisory 
 Andrew Chubb          Ltd.                         [phone] 
                     ----------------------------  --------------------- 
                      Hannam & Partners Advisory 
 Ingo Hofmaier         Ltd.                         [phone] 
                     ----------------------------  --------------------- 
 Susie Geliher        St Brides Partners Ltd        [phone] 
                     ----------------------------  --------------------- 
 Cosima Ackerman      St Brides Partners Ltd        [phone] 
                     ----------------------------  --------------------- 
 

Notes

Bluejay is dual listed on the London AIM market and Frankfurt Stock Exchange and primarily focussed on advancing the Dundas Ilmenite Project in Greenland into production in the near term. Dundas has been proven to be the highest-grade mineral sand ilmenite project globally, with a JORC Compliant Resource of 96 million tonnes at 6.9% ilmenite (in situ) and an Exploration Target over the Iterlak Delta of between 20 million tonnes and 60 million tonnes at between 6% and 10% ilmenite (in-situ) (see full Mineral Resource Statement below).

The Company's strategy is focused on securing an offtake partner and commencing commercial production at Dundas in the near term in order to create a company capable of self-funding exploration on current projects and future acquisitions.

Bluejay holds two additional projects in Greenland - the 2,586 sq km Disko-Nuussuaq ('Disko') Magmatic Massive Sulphide ('MMS') nickel-copper-platinum project ('Ni-Cu-PGM'), which has shown its potential to host mineralisation similar to the world's largest nickel/copper sulphide mine Norilsk-Talnakh, and the 107sq km Kangerluarsuk Sed-Ex lead-zinc-silver project ('Kangerluarsuk'), where historical work has recovered grades of 41% zinc, 9.3% lead and 596 g/t silver and identified four large-scale drill ready targets.

The Company also has a 100% interest in a portfolio of copper, zinc and nickel projects in Finland. This multi-commodity portfolio has been restructured to be cost-sustainable whilst determining the best plan for future development.

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November 22, 2018 02:01 ET (07:01 GMT)