DUNDAS TITANIUM A/S

 

 

RESEARCH REPORTS

PERMITTING UPDATE – SUBMISSION OF SOCIAL IMPACT ASSESSMENT

Bluejay Mining plc, the AIM and FSE listed company with projects in Greenland and Finland, is pleased to announce the submission of the Social Impact Assessment (the ‘SIA’ or the ‘Study’) for its Dundas Ilmenite Project (‘Dundas’ or the ‘Project’) in Greenland, the world’s highest-grade mineral sands ilmenite project.

SIGNIFICANT INCREASE IN GRADE, SCALE AND VALUE EXPECTED FROM GREENLAND THIS FIELD SEASON

Significant increase in grade, scale & value expected from Greenland this field season Key Points Bluejay are planning the construction of the Dundas (formerly Pituffik) ilmenite mineral sands project in Greenland. The project is advancing through Feasibility Study work towards final financing with preliminary site works underway and construction scheduled for later next summer.

SMRE 2018 PRICE TARGET: GBP 35.00 AFTER 400% INCREASE IN RESOURCES CONFIRMS DUNDAS’ HIGHEST-GRADE ILMENITE PROJECT IN THE WORLD

Investment recommendation: Since the acquisition of a 60.37% interest in the Dundas Ilmenite (Titanium) Project in December 2015, followed by the Company to go public and since then having multiplied in market valuation from £ 7 million to above £ 200 million, Bluejay Mining in the following 2 years has emerged to Greenland’s leading mining exploration company by market valuation. Its outstanding position has been strengthened fundamentally by having exercised the option to increase its interest in Dundas to 100% and in addition completion of the acquisition of Avannaa Exploration, which has two advanced polymetallic projects. With all current work programs now nearing completion, Bluejay is preparing an application for an exploitation license for Dundas to extract ilmenite, as a primary source of titanium metal. The Company expects the license to be lodged in the second half of this year and to be followed by a product decision in 2019. With Bluejay already having been included in my 2016 and 2017 Shortlist of Strategic Metals/Special Minerals and REE recommendations and in 2018 again, based on the Company’s prospective outlook to further strengthen its position as the highest-grade mineral sand ilmenite producer globally, SMRE raises 2018 share price target from GBp 25.00 to GBp 35.00. 

STRONG BUY TARGET PRICE 45P (WAS 37P) 400% INCREASE IN THEIR ESTIMATION OF THE DUNDAS (PITUFFIK) TITANIUM MINERAL SANDS RESOURCE IN GREENLAND

This is the most compelling titanium mineral sands project we have ever seen. The question now is at what point will the major mining and processing companies of the world take a closer interest. We expect the market for titanium mineral sands to tighten further this year as demand continues to grow and for projects of this nature to become increasingly valuable from a corporate perspective. Bluejay are planning the construction of the Dundas (formerly Pituffik) ilmenite mineral sands project in Greenland. The project is advancing through Feasibility Study work towards final financing with Site works due to start in Q2 2018 and construction scheduled for later next summer.

FEASIBILITY STUDY HAS COMMENCED AT DUNDAS ILMENITE PROJECT

Bluejay Mining announced that the feasibility study has commenced at the Dundas Ilmenite Project (previously referred to as the Pituffik Titanium Project). The change of the Project name has been made to align with the new Greenlandic subsidiary and to assist with the exploitation application documentation.

2017 UPGRADED PRICE TARGET: GBP 25.00 UPCOMING NEW RESOURCE CALCULATION EXPECTED TO POTENTIALLY INCREASE INFERRED JORC RESOURCE OF 23.6 MT AT 8.8% ILMENITE AT THE PITUFFIK TITANIUM PROJECT IN GREENLAND, THE HIGHEST-GRADE ILMENITE PROJECT GLOBALLY

Crucially significant further upside remains as the resource forms part of a larger exploration target for the tested area of between 90 Mt to 130 Mt at an in-situ grade of between 6.3% and 8.4% ilmenite. JAY intends to conduct a high-powered, ground-based, electromagnetic survey at the highly prospective Disko-Nuussuaq magmatic massive sulphide Ni-Cu-PGM project in Q4 2017. 

BUY TARGET 24P WE UPGRADE OUR TARGET PRICE TO 24P FROM 22P ON OUR REVISED CASH FLOW ANALYSIS – ILMENITE DEPTH EXCEEDS DRILL CAPACITY

Bluejay Mining are evaluating the scale and grade of resources at the Pituffik titanium ilmenite mineral sands project in Greenland. The JORC inferred resource shows the project is probably the world’s highest grade ilmenite and ranks as world class when compared with major mineral sands titanium projects held by major western mineral sands miners. We upgrade our target price to 24p from 22p on our revised cash flow analysis. 

JORC RESOURCE CONFIRMS HIGHEST GRADE ILMENITE ‘TITANIUM’ PROJECT IN THE WORLD — BUY TARGET 22P

Bluejay mining continues to work up the scale and grade of ilmenite resources at the Pituffik mineral sands titanium project in Greenland. The JORC inferred resource shows the ilmenite project is probably the world’s highest grade and ranks as world class when compared with major titanium mineral sands projects held by major western mineral sands ilmenite miners.

ROAD TO VALUE — BUY TARGET PRICE 15P — MINING IN GREENLAND IS TICKING THE BOX WITH SOME TITANIUM PROJECT MILESTONES AT PITUFFIK.

Advancing toward mining titanium rich, ilmenite mineral sands at Pituffik. *Valuation: We value the project at an IRR of 43% and a $144m NPV on an 8% discount rate. This give us an NPV per share of 19 pence. *Pituffik deposit is very different from other mineral sands deposits and experts suggest Pituffik titanium mineral sands grades may rank among world’s highest. Pituffik’s mineralogy is much simpler and the deposit is seen as unusually consistent. *Tonnage, consistency and metallurgical evaluation should help confirm potential value of the in-situ deposit. Quality of mineral sands concentrates is critical with Pituffik appearing suitable for sulphate production. Processing, as with all ilmenite, is required to reduce impurities to acceptable levels. *Royal IHC, the Dutch dredging company, is supporting work on the dredging of shallow and near shore marine mineral sands. *Ilmenite Demand for ilmenite concentrates should continue to rise. 

AIM AND FSE LISTED EXPLORATION COMPANY FOCUSED ON THE HIGHLY PROSPECTIVE PITUFFIK TITANIUM PROJECT IN GREENLAND WITH CORNERSTONE SUPPORT FROM ONE OF AUSTRALIA’S LARGEST NICKEL MINERS

Pituffik has been proven to host a very large and unusually pure titanium occurrence that displays characteristics which have been independently verified as having the potential to be a top percentile project in terms of grade.

INVESTMENT ALERT – FROM INDEPENDENT INFORMATION AND ADVISORY PUBLICATION ON INVESTING IN STRATEGIC METALS & RARE EARTHS

Management of FinnAust believes that the results from the diverse range of initiatives undertaken will gener-ate a large array of data that will tie in with other work programmes that are underway in the background. The completion of a maiden JRC resource, together with results from the environmental impact assessment, will position the Company for its next leap early next year into permitting of an exploitation licence in the first half of 2017. Pituffik continues to exceed FinnAust’s expectations at each turn and is believed to be eventually recog-nized as a globally significant ilmenite deposit, both in terms of grades and tonnes. With the Company progressing well, considering its low market valuation of only £ 31.0 million (US$ 40.2 mil-lion), I have raised my 12-months price target from GBp 7.00 to GBp 9.00. 

METOCEAN STUDY TO HELP ROYAL IHC ADVANCE PRPARATION FOR DREDGE MINING

All of our activities, be it our continuing resource definition programme, our recently completed Environmental Impact Assessment or our metallurgical testwork, are focused on executing on the exciting potential Pituffik demonstrates to deliver a multi-decade operation supplying low impurity Ilmenite to the market. This study by Svašek Hydraulics will provide Royal IHC with important information to support its dredge mining studies and we look forward to working with them to add value to this unique asset in Greenland. 

PROGRESS REPORT ON PITUFFIK MINERAL SANDS EXPLORATION

The exploration work at Pituffik appears to have generated some very positive results with a high level of success in both the onshore and offshore drilling and high levels of ilmenite sand intersections. The data should underpin a JORC compliant resource estimate and parallel work streams to support environmental permitting and the submission of an exploitation licence application early next year have also been completed. We look forward to a resource estimate and further information on grades. 

SP ANGEL – FINNAUST MINING 5.1P, MT CAP £25.3M – FINNAUST MINING IS PUSHING AHEAD WITH EXPLORATION AND DELINEATION OF THE PITUFFIK TITANIUM MINERAL SANDS PROJECT IN GREENLAND

*So far reports suggest the project is shaping up well and is heading towards trial mining of a relatively pure and potentially premium ilmenite product. * Illuka’s recent offer to buy Sierra Rutile indicates to us that demand for titanium mineral sands is rising again after several years of depressed prices and a surplus of supply. *High iron ore prices in past years caused Chinese smelters to utilise lower cost titanium rich magnetite ores promoting the sale of surplus titanium ore from these types of deposits. Now lower iron ore prices has put an end to much of this higher-cost ore supply causing buyers to return to the market for titanium mineral sands. 

EXTENDED OFFSHORE LICENSE GRANTED FOR PITUFFIK TITANIUM PROJECT, GREENLAND

FAM granted an extension of its existing licence to include all minerals within the shallow marine environment at its Pituffik Titanium Project. The extended licence now includes marine extensions of titanium-rich black sands (Drowned Beaches). Mod- elling suggests this area contains ilmenite bearing sed- iments similar to that of the active raised beaches at Pituffik, but in much larger volumes.

RESEARCH REPORT FEBRUARY 2016

Mineral exploration in Greenland, Finland and Austria. Primary focus on the high-grade Pituffik titanium project in northern Greenland. Large portfolio of quality exploration licences in Finland covering areas of high geological prospectivity in historic mining districts.