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BlueJay Mining says PFS underlines huge potential of Dundas project in Greenland

"The base case positive 32.8% IRR and US$83.1MM NPV are just a starting point"

Ilmenite/titanium is used for paint pigments

BlueJay Mining PLC’s (LON:JAY) Dundas minerals sands project in Greenland is worth US$83mln over a nine-year mine life according to a pre-feasibility study. 

Costs to build the mine and infrastructure are estimated at US$245mln.

BlueJay added that the PFS was based only on a JORC compliant mineral reserve of 67.1Mt and not the entire resource of 117Mt and designed both as a high-level assessment of Dundas and to accelerate the permitting process.

The cut-off grade used assumed a selling price of US$232/t, all in sustaining costs of US$113/t, Greenland royalty of 2.5% and total titanium dioxide recovery of 79.7%

Roderick McIllree, the junior's chief executive, said the PFS demonstrated  Dundas' commerciality. while there was plenty of scope to improve the numbers through resources to reserve work.

"The base case positive 32.8% IRR and US$83.1MM NPV are just a starting point. With demonstrable potential for additional resources both on and offshore along the entire 30km of licence holdings the opportunity to significantly increase the initial 9-year mine life and/or rate of production is clear."

McIllree said he was also confident the construction costs can be brought down materially and a detailed costing study will now get underway.

"To truly understand Dundas' worth, one must also look at the value it could add to higher grade finished products because of the potential for blending with lower quality feedstocks"

The PFS has been lodged with the Government of Greenland as part of an exploitation application while talks are underway with European funding agencies.

Quick facts: BlueJay Mining PLC

Price: 6.2 GBX

Market: AIM
Market Cap: £60.14 m

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