Bluejay Mining (LSE: JAY; US-OTC: BLLYF) has received approval to build its Dundas Ilmenite project on the northwest coast of Greenland, 80 km north of the town of Qaanaaq.
The company said its approved exploitation and closure plan is the final government-level approval required before construction at Dundas can start.
In December, the Greenland-focused explorer and developer was granted the exploitation licence for Dundas. The license grants Dundas Titanium, a wholly-owned subsidiary of Bluejay, the rights to the ilmenite resource at Dundas and is valid for an initial 30-year period.
Ilmenite is considered the most important titanium ore and is the primary source of titanium dioxide used in paints, printing inks, plastics, and adhesives.
A 2019 prefeasibility study outlined an open-pit mine life of nine years producing 440,000 tonnes of ilmenite annually. Capital expenditure was pegged at US$245 million.
The study estimated the after-tax net present value to be US$83.1 million using a 5% discount rate, and an after-tax internal rate of return of 32.8%. The PFS used a JORC-compliant mineral reserve of 67.1 million tonnes of ilmenite grading 3.45% ilmenite.
Bluejay is now focused on securing financing ahead of commencing commercial production at Dundas. Once in operation, revenue from the mine can support future exploration and acquisitions, it said.
The company's other assets in Greenland include the Disko-Nuussuaq nickel-copper-cobalt-platinum-gold project; the Kangerluarsuk zinc-lead-silver project; and Thunderstone, which has the potential to host large-scale base metal and gold deposits. In Finland, it has a joint-venture agreement with Rio Tinto (NYSE: RIO: LSE: RIO; ASX: RIO) to advance the Enonkoski nickel project.
At press time in Toronto, Bluejay was trading at US16 ? per share within a 52-week trading range of 7 ? and 20 ?. The company has around 972 million common shares outstanding for a $155.5-million market capitalization.