Greenland-focused explorer and developer Bluejay Mining has been granted the Exploitation Licence for its Dundas Ilmenite Project by the Government of Greenland. The Licence is being granted to Dundas Titanium, Bluejay’s wholly owned subsidiary.

The Licence allows Dundas to progress towards procurement, construction, and ilmenite production. Ilmenite is a titanium-iron oxide mineral, considered from a commercial perspective to be the most important titanium ore. It is the primary source of titanium dioxide, which is used in paints, printing inks, plastics, and more. The Licence grants Dundas Titanium the rights to the ilmenite resource at the site, and is valid for an initial 30-year period that can be extended.

The project’s current pre-feasibility study (PFS) indicates a mine life of 11 years, with an onshore mineral reserve of 67Mt within a JORC-compliant indicated mineral resource of 117Mt. There is potential scope for future production increases or an extension to the mine life, and there are additional shallow marine exploration targets within, and adjacent to, the area covered by the Exploitation Licence.

As part of the process of granting the Exploitation Licence, the project’s environmental and social impact assessments have both been approved. The Impact Benefit Agreement between the Municipality of North-West Greenland, the Government of Greenland, and Dundas Titanium has also been signed. Bluejay said that the award of the Exploitation Licence allows the company to progress financing discussions with existing, and potentially new, interested parties.

“The extendable 30-year licence allows us to now implement the initial 440,000 tonnes ilmenite concentrate per annum operation and we anticipate reaching a commercial agreement very soon with a large multinational commodities group for Dundas product, allowing us to move further forward towards production,” Bluejay CEO Rod McIllree said. “Additionally, the company is currently completing an optimisation study, which should materially enhance the economics of the project. The PFS for Dundas was established on a small portion of the identified mineralisation and should eventually allow for many decades of mine life to be added.”

The company said that mining at Dundas is planned to be carried out through simple surface mining on raised beach sand deposits, simple wet gravity separation, and magnetic separation. Bluejay is required to obtain the Greenland Government’s approval for the exploitation plan and the closure plan by the end of 2022, and to begin mining no later than the end of 2025 unless approved otherwise.

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The Mayor of the Municipality of North-West Greenland Palle Jeremiassen said: “The Dundas Ilmenite Mine will provide significant benefits to the local communities as well as the region, in particular creating growth through employment and additional infrastructure developments.  Bluejay is already in the process of training local people in order for them to gain the skills required to work at the Project, indicating that they are committed to providing benefits to local people.

“Bluejay is not only actively developing the Dundas Ilmenite Project, its Disko-Nuussuaq Project and Kangerluarsuk Project are also both located within the Municipality and we look forward to seeing these projects being progressed.

“We have had an extremely good relationship with the Company and look forward to supporting the next phase of the Dundas Ilmenite Project as it progresses towards first production.”