Bluejay Mining Share Discussion Threads

[kemismelt] 29/1/2020 03:37

IS LON:JAY GOING TO FOLLOW IN THE WAKE OF TSXV:MLR

On 8AUG19 I made the following comment to LON:JAY cautioning them of the drift in their mineral sands Dundas ilmenite project:

" Again, the shareholders are the fall guys!

Melior Resources (TSXV:MLR) announced that the board has received and accepted the resignation of Mark McCauley as CEO effective 5 August 2019. Mr McCauley will remain as a non-executive director and will assist in identifying new candidates for the CEO position. Chairman Martyn Buttenshaw will assume the position of interim CEO.

I expected Mark to abandon the bridge when the food in the galley dries up! ".

I now observe that Dundas Titanium A/S (DT) has taken on another local director which is good for the ilmenite project but it would help the private investors holding stock for such a long time if this subsidiary is spun off away from the control of the present management of LON:JAY who have their fingers in many pies, with some arrangement to compensate the present stock-holders. Then DT can work independently to add value to its ilmenite potential in more modest proportions, which is the only long-term solution in Greenland. Let not DT become another TSXV:MLR!

[lovewinshatelosses] 28/1/2020 13:15

Well Triple B, we shall see if this is a tin pot juristiction or not - the jury is still out on that in my mind. All things considered though, some insider buying would be nice to see, especially by someone like Dr BMS for example (out of his own pocket, needless to say). When the closed window is not in operation of course. I do seem to say this a lot, but increasingly I think it is something that AIM senior management people need to do. It does not guarantee market approval of course, but I would put my hand in my own pocket in those circumstances - unless I was just in it for the pay check, and did not have full confidence in the proposition. Anyway, good luck to all fellow holders and will await further news before I rant again :) I hope too that the day will come that I am waxing lyrical about JAY and patting myself on my own back for holding (and occasionally topping up) when the market was dumping stock!

[perfect choice] 28/1/2020 11:52

Agreed and think this public disclosure via RNS has been a bit of a kick to the authorities to get on with the exploitation licence. Now I believe both the EIS and SIA have to be cleared before the mandatory 8 week public consultation can begin. So while EIS is 1st week of February SIA is still "soon after" before 8 weeks can even start and then we need the "political decision" so as already commented earlier today, how quick are politicians making a decision in Greenland. But if they want the PR then this is their time to be quick once the public consultation is complete and other major comes out of that. So pointing April at best and probably May so right at the begging of the summer construction period, and that assumes JAY is working in the background to identify contractors to start up the work as soon as they can go.

So in summary I do feel we have a firmer and derisked roadmap to the exploitation licence being granted but even with that, its just the timescales as seen now. JAY were right to make this public to put the pressure on IMHO.

[andy] 28/1/2020 11:38

Good to see such a candid update.


I would imagine they have made the authorities very aware of the urgency so that construction can commence during the summer weather window.

[ukgeorge] 28/1/2020 11:27

From SPAngel today.


Bluejay Mining* (JAY LN) 7.7p, Mkt Cap £75m – Bluejay informed Government response on final EIA approval expected in February. Expects positive political decision for development thereafter.
Target price revised to 16.3p (from 21.3p/s)
(Dundas Ilmenite project, Greenland, 100% owned)

• Bluejay Mining report the company has been informed that it should expect a response to its EIA and SIA, Environmental and Social Impact Assessments in the first week of February.

• The company has also appointed per Buhl Olsen as a non-executive director of Dundas Titanium A/S, Bluejay’s 100% owned subsidiary in Greenland as part of the strategic investment made by the Danish Growth Fund in December.

• Rod McIllree reports that “the licencing process has been extremely frustrating. Although we enjoy regular and supportive dialogue with the Greenlandic authorities, it has been extremely disappointing that administrative processing has taken considerably longer to complete than was advised, especially considering only minor amendments to our licencing applications have been required. However, we are hopeful that the review and approval process is nearing completion as we have been informed that we should expect a response for the EIA in the first week of February. We expect to receive a response to the SIA shortly thereafter”.

• "These two responses are the basis for ministerial approval and will then allow the Company to move into the public consultation period, before the Project receives a political decision on development. Throughout Dundas' development, Bluejay has received positive support from various local, regional and national stakeholders in Greenland, as highlighted by the recent investments from Greenland Venture and Vækstfonden, so we are confident that there will be a positive outcome on this front.”

• Titanium prices rose 5% last week to $200-220/t for 47-49% TiO2 cif China.

• Price are rising due to a growing supply demand imbalance in the market for titanium mineral sands with problems at Rio Tinto’s Richard’s Bay operations in South Africa and issues affecting future production for two mineral sands operators in Madagascar.

• Target price adjustment and assumptions: we have made a number of adjustments to our model on Bluejay Mining resulting in the adjustment to our target price to 16.3p (from 21.3p).

• We assume Bluejay could receive a price of $210/t for its premium high-grade ilmenite concentrate product. The value of the magnetite in the concentrate should more than cover the cost of shipping.

• Our modelling assumes a 1.31 US dollar/ sterling exchange rate and an interest rate of 8% of for our valuation for an NPV@8% of US$182m on an initial capital cost of US$245m.

• We assume ilmenite concentrate production of 440tpa as set in the feasibility study and we also assume production rises to 582,000tpa in the fifth year of operation.

• RTIT have approved the ilmenite concentrate for use in a full smelter test which we believe will happen in the next few months.
Conclusion: Bluejay should be able to produce the world’s highest grade ilmenite concentrate from its Dundas project in Greenland.
The high-grade concentrate is mainly magnetite and ilmenite giving buyers two valued revenue streams out of their furnaces plus the ability to use higher-grade material to upgrade cheaper lower grade ilmenite concentrates.
This is all the more valuable in a market where good quality ilmenite concentrates are becoming increasingly scares.
*SP Angel act as nomad to Bluejay Mining. *SP Angel have visited the Dundas, Itelak ilmenite sands project in Greenland.

[dhb368] 28/1/2020 11:21

Not sure if I had missed this before;

"An exploitation licence regarding mineral resources will, as a main rule, only be granted to limited companies domiciled in Greenland, exclusively carrying out activities under the granted licences and not being taxed together with other companies"

So presumably the Dundas share split will happen pretty soon.

EDIT: Tax rate is effectively 55%. Ouch!

[dhb368] 28/1/2020 11:15

BBB, they might not have hundreds of applications but they have a population of 56,000.
Just pick a small town council near you and think how they might handle this sort of thing. Too many people used to handling the refuse contracts and not enough experience/infrastructure to handle the influx of applications.
They will also want to get this right as it will be seen as a benchmark for the other applications in the pipeline.

As you say these timescales are not surprising and I expect (most of) the people of Greenland want to get it (and the jobs) moving as quickly as anyone.

[bigboyblue] 28/1/2020 10:53

This is about what I expected (see my post 7018). Not that I'm feeling smug, because I'm as frustrated as everyone else. Agree, they really have to get their act together; it's not as if they have hundreds of applications to cope with. It's quite clear that they want every 'I' dotted and every 'T' crossed. If they're not crossed and dotted neatly enough, they have to be redone.

It's hard to believe but, if today's published timeframes prove to be correct, in Greenlandic terms it has been quick. I know this having researched the most recent successful applications (Ironbark and Hudson resources)very thoroughly. Greenland Minerals submitted their application 11 weeks ahead of us, but it appears we shall probably reach consultation stage ahead of them.

I suppose there is some consolation in that, as RM said in the recent interview, it's not some tinpot sub Saharan jurisdiction where one day you own a mine and the next day it's been taken off you. But we really do need this to be done in time for the shipping window.

PS: A well judged RNS I felt, striking the right balance between keeping the authorities onside and saying ffs get on with it.

[alibx11] 28/1/2020 10:00

Results on applictaion expected first week of Feb then 8 week public consultation period before decision to be made on politicial level.... wonder how long all that will take... think your estimate of April is a bit optimistic xc, never seen a politician making quick decisions...getting kicked further down the road again....

[xclusive2] 28/1/2020 09:06

Yep, it is hugely frustrating and as stated, it shortens the operational window, that to me is irritating. The senior hires, well that hasn't accelerated the program and if they really want a better life for their current and future generations then something has to change.

[rampair] 28/1/2020 08:46

So, with the dirty linen hung out for all to see - i personally hope it gives the Greenlanders something to think about. I dont think the company could go further it was
A strong, embarassing statement and i really hope they ( Greenland)
are taking note - i’m sure other miners are.
If a junior miner with a project to remove sand particles and not destroy anything around if it takes this long to process an application to get permission
- what does that tell other Extractive companies?
This was a decent statement and with a new Greenlandic Non exec Director on the board - I’m sure that it was issued after much thought.
These timeframes given by Greenland must be adhered to or they will put off many others despite the excellence of the resource.
I hope that this now results in timely handling of our application, and we get through to the final parts speedily.

All my own opinion,
Still holding my shares in the company as the resources are strong, and look forward to someone getting this signed off!

R.

[lovewinshatelosses] 28/1/2020 08:38

While I agree with your sentiments xclusive2, I also am wondering whether some of those senior hires, made to great fanfare previously, actually have any clout with the authorities here; I certainly would have expected better results than this by now if I were RM.
As for the Greenland authorities, well, I would not have invested here had I known they were so useless, to be frank. I continue to hold, but with considerably less confidence than before.

[perfect choice] 28/1/2020 08:33

Agree xclusive2, if they take their tie on this exploitation licence where the issues for assessment are not that major and general consensus of support in place, how long will they take for the more complex and ambitious mining projects? They need to fine tune their process if they want mining business ands growth in Greenland. But it does seem at least Dundas is getting near the end of the "unknown waiting" period and we will have a more definitive timescales now to the final political decision, hope that final decision is not too long then! The difficulty for JAY is their plan is to get going with construction in this summer season and would clearly want to the full period possible to commence construction of facilities at Dundas, so they don't want this slipping past May I would say.

[xclusive2] 28/1/2020 08:06

PC,Yep, an honest assessment but frustrating . Local jobs, revenue, the start of needed development in Greenland, you'd think that they'd be accelerating the process.

[xclusive2] 28/1/2020 08:03

The Greenlandic authorities need to get with the program if they really are open for business. JAY aren't the only company and it obviously is a painful process if small amendments are taking far longer than they should. Nowt we can do but wait and looks like April before the political consultation process completed..

[perfect choice] 28/1/2020 07:17

Dundas update RNS, honest and straightforward acknowledgement of slow progress of permitting process. But looks like will finally get EIS first week February, then SIA shortly after, then 8 week public consultation cycle but at least a firmer path to final political decision required for exploitation licence.

28/01/2020 7:00am
UK Regulatory (RNS & others)

Bluejay Mining (LSE:JAY)
Intraday Stock Chart
Today : Tuesday 28 January 2020

Click Here for more Bluejay Mining Charts.
TIDMJAY

RNS Number : 0755B

Bluejay Mining PLC

28 January 2020

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

28 January 2020

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

Dundas Project Licencing Update and Dundas A/S Board Appointment

Bluejay Mining plc, the AIM and FSE listed company with projects in Greenland and Finland, is pleased to provide an update on its exploitation licence (the 'Exploitation Licence') application for the Dundas Ilmenite Project ('Dundas' or the 'Project') and announce the appointment of Per Buhl Olsen to the Board of Directors of Dundas Titanium A/S.

Dundas Project Licence Update

Bluejay remains focussed on securing the requisite Exploitation Licence for the Dundas Ilmenite Project, which was submitted to the Mineral Licence and Safety Authority ("MLSA") on 17 September 2019 and included the Environmental and Social Impact Assessments ("EIA" and "SIA"). The lodgement of these documents represented the conclusion of more than three years of extensive field assessments, measurements and documentation, which Bluejay was supported in producing by its various specialist advisers who worked to ensure all relevant modules were prepared in compliance with the application requirements and standards as set out in the approved terms of reference and with respect to licencing requirements.

Following rounds of minor amendments and edits, Bluejay has received several assurances of timely documentation processing and turn-around from the relevant Greenland ministries. Nonetheless, Bluejay is still waiting for final approval on the EIA from the Energy and Environmental Agency for Mineral Resources Activities ("EAMRA") under the Ministry of Nature, Environment and Research, Government of Greenland, and the advisors to EAMRA, the Danish Centre For Environment And Energy, Aarhus University, and Department of Environment and Minerals, Greenland Institute of Natural Resources. Whilst this slow assessment is frustrating, the Company is confident it is nearing conclusion having been informed that a response can be expected in the first week of February. The SIA is also in its final round following a review and amendment process with the Ministry of Mineral Resources, Government of Greenland, who now are now assessing the application.

Dundas A/S Board Appointment - Per Buhl Olsen

Per Buhl Olsen has been appointed as a Non-Executive Director of Dundas Titanium A/S, Bluejay's 100% owned subsidiary which owns the flagship Dundas Ilmenite Project. His appointment follows the strategic investment made by Greenland Ventures and Vækstfonden ('Danish Growth Fund') into Bluejay in December 2019.

Per Buhl is an experienced Investment Manager and finance professional with significant corporate experience. Based in Nuuk, Greenland and on the board of several companies he is very well-connected in Greenland and is a skilled negotiator and analyst with a deep knowledge of the country's society and politics. Per has worked with several Danish and Greenlandic banks, including Bank Nordik and Bank of Greenland and is a graduate from the University of Greenland and Business Institute Denmark.

Bluejay CEO Roderick McIllree said "I would like to extend a warm welcome to Per Buhl Olsen and congratulate him on his appointment to the board of Dundas Titanium. Per's extensive operational experience and network in Greenland together with the ongoing support of Greenland Venture and Vækstfonden will prove very valuable as we advance Dundas towards production.

"With respect to commencing production, the licencing process has been extremely frustrating. Although we enjoy regular and supportive dialogue with the Greenlandic authorities, it has been extremely disappointing that administrative processing has taken considerably longer to complete than was advised, especially considering only minor amendments to our licencing applications have been required. However, we are hopeful that the review and approval process is nearing completion as we have been informed that we should expect a response for the EIA in the first week of February. We expect to receive a response to the SIA shortly thereafter.

"These two responses are the basis for ministerial approval and will then allow the Company to move into the public consultation period, before the Project receives a political decision on development. Throughout Dundas' development, Bluejay has received positive support from various local, regional and national stakeholders in Greenland, as highlighted by the recent investments from Greenland Venture and Vækstfonden, so we are confident that there will be a positive outcome on this front. We look forward to providing further updates on Dundas' permitting status in the coming weeks as we await a response from the Greenlandic authorities and continue to focus on building a sustainable mining project for the benefit of all stakeholders."

[perfect choice] 27/1/2020 17:13

I recall Rod in his recent interview saying if he started again he would have focused with the Kangerluarsuk prospect first so he must rate it. Disko is a but of a no brainer as an exploration target and already caught the interest of others around JAY's own holding. Dundas is clearly the one now to look at revenue generation which just could possibly be in 2021 for initial income if several factors go to plan.

I am wondering if the Finland licence are the ones to sacrifice if they really need to control costs but right now they seem to have developed some focus whereas previous there was mention of selling them off.

The need right now on these other prospects outside of Dundas is to tempt partners in for JVs, so expenditure only as is necessary for 2020 drilling season to provide evidence to tempt in partners for the major funding to develop.

I see JAY has dropped back today among the general market knock back today. I'm looking at a 2 year window myself so there will be days like this.

[dhb368] 27/1/2020 16:52

I agree PC. I think that they have done a great job to get as much as they have with little dilution and they are certainly keen to maximise shareholder value as such as their interests are very much aligned with PIs.

For me this was always going to be a medium term punt.

[perfect choice] 27/1/2020 14:51

Well exploitation licence for Dundas and RTIT smelter test are clear drivers to get to near term revenues for JAY. In the mean time JAY needs to protect its follow on prospects and the one today justifies extra protection of the original resource target area so additional MEL. Take a look at Disko and see what has happened there with the likes of Anglo American and 2 other parties taking licences around JAYs own licences so important as first mover to get the "prime targets".

But the way I'm seeing it is JAY is trying to minimise how much initial cost it has to incur in advance of JV partners to buy-in and so fund follow-on drilling, etc. Its important to not spend too much on multiple exploration prospects agree and eat up cash, but they seem to be doing the minimum (remember to hold a MEL you need to commit to minimum expenditure) while focusing this year on JVs and maybe more on Dundas.

[monts12] 27/1/2020 11:18

Duplicate post deleted

[monts12] 27/1/2020 11:18

Bluejay Mining* (JAY LN) 8.1p, Mkt Cap £79m – Bluejay awarded new mineral exploration license around Kangerluarsuk in Greenland. Survey to define drill targets
(Dundas Ilmenite project, Greenland, 100% owned)
• Bluejay have been awarded a new mineral exploration licence around their existing Kangerluarsuk zinc-lead-silver Project in central west Greenland.
• The team will drill Kangerluarsuk this field season.
• Kangerluarsuk and surrounding ground is seen as prospective for zinc-lead-silver-copper mineralisation with sampling by ‘RTZ in the early 1990s showing 14% Zn, 9.3% Pb and 92 g/t Ag.
• An early-season ground gravity survey should further refine drill targets
• There is some correlation between formations seen at Kangerluarsuk (Qaarsukassak Formation) amd the Mârmorilik Formation to the south that hosts the former Black Angel zinc-lead-silver mine.
• Historic RTZ samples include:
o 41.1% Zn, 0.4m grading 45.4% Zn
o Up to 41% Zn, 9.3% Pb, 1.2% Cu and 596 g/t Ag underpins the resource potential
Conclusion: Bluejay is working on the discovery further high-grade mineral resources in Greenland. The withdrawal of the ice sheet has left bare rock exposed for geological examination.
We await further news on progress at Bluejay’s Dundas ilmenite project which exported some 42,000t of ilmenite concentrate to Canada last year with part of this sample supplied to Rio Tinto Iron & Titanium in Canada.
*SP Angel act as nomad to Bluejay Mining. *SP Angel have visited the Dundas, Itelak ilmenite sands project in Greenland.