Permitting Update - Submission of SIA

RNS Number : 5899Y

Bluejay Mining PLC

10 May 2019

 

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

10 May 2019

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

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.  

Overview:

·  Completion and submission of the Social Impact Assessment to the Ministry of Industry, Energy & Research, Government of Greenland

·  SIA lodgement represents the completion of another core module in the exploitation permitting process for Dundas

·    Key findings of the Study concluded:

o Dundas judged to have a net positive impact on local communities

o Substantial public support for Dundas' development demonstrated across the Qaanaaq region as well as throughout Greenland with national stakeholders

o The new mine is expected to bring significant employment opportunities and economic development to the region and to Greenland in general

The SIA constitutes three years of surveys and baseline studies and is built on the requirements determined in the Terms of Reference for the SIA.  The Terms of Reference were approved following public consultation with the various Greenlandic Authorities and stakeholders in 2017.

The Study, which was presented to the to the Ministry of Industry, Energy & Research, Government of Greenland, was prepared by international, multidisciplinary engineering consultancy company NIRAS Gruppen A/S ('NIRAS').  With a reliable history of analysing social consequences and processes, both positive and negative, of planned mining and infrastructure projects in Greenland, NIRAS is one of the most experienced SIA service providers with respect to mining and permitting related studies for operations in Greenland.

The SIA enables the authorities to evaluate and understand the impact of exploitation of the ilmenite-bearing sand at Dundas, as well as the broader regional and national significance for Greenland.  Moreover, it is aimed at strengthening constructive solutions in order to promote the positive social opportunities that the Project brings, whilst mitigating any negative effects, if any.  The SIA forms a critical cornerstone in the application for an exploitation permit.

The submitted Study concerns the onshore mining processing within the licence area and the associated direct or indirect consequences and processes arising from this activity.  It is completed based upon the development scenario as outlined in the Company's pre-feasibility study ('PFS'), which anticipates yearly production of 440,000 tonnes per annum of ilmenite product to be shipped from the Project.

Major findings from the report include:

·    Creation of up to 175 direct employment positions and a number of indirect jobs for Greenland once the Dundas mine is fully operational.

·    Increasing skills within the workforce; the Project will elevate the level of training among the workforce within the mining sector in Greenland.

·    Expected positive impact on local and national economy through provision of goods and services from local companies and through payment of royalties, corporate taxes and income taxes.

·    The Project will provide training and skill upgrading opportunities to Greenlandic students.  This will build experience in the mining sector for students through the Company's cooperation with national education institutions such as the Greenland School of Minerals and Petroleum.

Specialist Camilla Christensen from NIRAS responsible for the SIA said: "The SIA that was submitted clearly demonstrates that the Dundas Ilmenite Project will have a positive impact on Greenlandic stakeholders.  The simplicity of the mining and processing mean it can be easily implemented, is well-matched for the available Greenlandic workforce, made up of local communities and is well-suited for elevating the level of qualifications in the mining sector in Greenland.  Importantly, the public pre-hearings and stakeholder interviews carried out as part of the SIA have shown very positive support towards the Project."

Bluejay CEO Roderick McIllree said: "The SIA represents another major step towards mine development.  We are extremely happy with the positive findings and would like to thank NIRAS for their extensive and detailed assessments.  Throughout the SIA process there has been a broad and continued dialogue with all stakeholders, including local communities, regional and national institutions, businesses, NGOs and politicians, and whilst this is a time and resource intensive process, it is a key step and one we are now pleased to have completed.

"Dundas is expected to create a new sustainable workplace in an area of Greenland that currently has few job opportunities.  We are therefore delighted to be able to contribute to this region and Greenland as a whole.  Dundas, with its simple mining and processing route, should provide meaningful social benefits and further raise awareness and experience levels for the emerging mining sector in Greenland.  We look forward to continuing development of Dundas and increasing the good cooperation and dialogue on the Project with all stakeholders, especially the local communities.

"With both the EIA and SIA now submitted, the last remaining components are the mineral reserve, mine plan and impact benefit agreement.  We look forward to updating shareholders as we move through these final phases of the exploitation application."

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 www.titanium.gl or contact:

Roderick McIllree	Bluejay Mining plc	[phone]
Ewan Leggat	SP Angel Corporate Finance LLP	[phone]
Soltan Tagiev	SP Angel Corporate Finance LLP	[phone]
Andrew Chubb	Hannam & Partners Advisory Ltd.	[phone]
Ingo Hofmaier	Hannam & Partners Advisory Ltd.	[phone]
Hugo de Salis	St Brides Partners Ltd	[phone]
Cosima Akerman	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 101 million tonnes at 7.1% ilmenite 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).

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 2,586sqkm 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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