Infrastructure is strong, with the project sitting approximately 30 km from the international airport. Greenland benefits from a pro-mining.
Pituffik is an advanced stage titanium project. It has been the subject of multi decade technical studies and is the highest-grade mineral sand ilmenite project globally.
The resource estimate is an important step towards commercialisation of Pituffik and the delivery of another stated objective. With just ~17% of the raised beach area having been assessed; the maiden resource has exceeded even our expectations and represents an important step towards commercialising the Project.
The mineral resource estimate prepared by SRK Exploration Services ('SRK') was broken down into three components:
- An Inferred resource of 23.6Mt at 8.8% ilmenite (in situ) for the total area tested
- This includes a high-grade zone equal to 7.9Mt at 14.2% ilmenite (in situ) at Moriusaq which is the focus of the feasibility and production studies that are currently underway
- A larger exploration target for the area, primarily encompassing potential mineralisation below and inland from the current drilling, of between 90Mt to 130Mt at an in-situ grade of between 6.3% and 8.4% ilmenite
The work being planned for the 2017 field season should see this resource grow exponentially.
Furthermore, by removing approximately 30% of the oversize material at the dig point through screening we will be able to improve the in situ grades by 30% prior to delivery at the concentrator. This should allow for grades of over 20% ilmenite at the mineral separation level to be maintained for many years. This surpasses the conservative in-house estimates of grade and duration in our financial modeling, and when added to the fact that this material contains little to no slimes and no radionuclides and consistent ilmenite chemistry throughout the deposit we anticipate the final economics will be compelling.
2017 will be an exciting year with plenty of work streams scheduled for delivery. We will immediately look to finalise a range of work programmes, including the internal Feasibility Study, all of which are focussed towards lodging the application for exploitation. When our planning for the coming field season is complete we will update the market on this as well as provide updates on the pilot plant programme currently underway at IHC Robbins in Queensland."
The 2016 work programmes were designed specifically to determine the volume characteristic, the potential for Pituffik to become one of the highest grade in situ deposit of ilmenite anywhere in the world as well as having a large tonnage inventory is self evident.
Photogrammetry, marine bathymetry as well as onshore and offshore sampling has been completed by Bluejay during 2015, the early results of which have shown visual percentages of heavy minerals in almost all samples taken, and continue to demonstrate not just the extensive and high grade nature of the onshore accumulations of ilmenite but also the potential for much larger volumes of ilmenite bearing sediments within the shallow marine environment extending out to approximately 1,000m from shore all in less than 20m of water.
The 2016 Work Programmes as mentioned were all about volume with more than 250 holes completed on the raised beaches as well as more than 150 off shore vibracore holes being completed as well.
The latest depositional models for Pituffik comprises five primary target areas that are all of interest to the company. They are also all, with respect to industry peer groups of very high grade.
Raised beaches; medium grade & medium tonnage targets of ±15% ilmenite covering an area of more than 1km wide and 30km long;
Active beaches; the tidal and surf zone containing high grade, usually >50%, ilmenite that covers an area of more than 100m wide and 30km long.
Drowned beaches; sediments contained in the shallow marine environment that are high grade and high tonnage targets. These are more than 3km wide up to 27m thick in some places and 30km long.
Moriusaq Beach; Moriusaq Bay is a low-medium tonnage but very high-grade 75% target.
Interlak delta deposits; the deltaic deposits of the Interlak river are ultra large tonnage at lower grades of around 15% ilmenite.
Sampling in the high-grade "Moriusaq beach" area returned opaque fractions (magnetite and ilmenite) of up to 95%. Active beaches in that project area returned grades of ilmenite of up to 68% with an average grade of ±40%.
The far more expansive uplifted beaches are on average around 20% ilmenite.
The drowned beach sediment accumulations, if ultimately proven, could be amenable to exploitation via simple and cost effective offshore dredging. The Company's Mineral Exploration licence covers both on and offshore areas with the first licence of its type to cover marine based minerals ever in Greenland.
In terms of future work, FinnAust is focused on delivering production from Pituffik with the aim of ultimately generating cash flow to pay dividends and also become capable of self-funding exploration on its various projects. Read 2016 Work Programme Update, Pituffik Titanium Project, Greenland
2016 was a solid year for the Company, we made substantial progress in establishing the potential viability of the Pituffik Titanium Project. Focus during 2017 will turn to further significant value accretive events as Pituffik continues to demonstrate its potential to host a large & high-grade ilmenite deposit which metallurgical test work indicates has the capacity to produce a high-quality concentrate.
Work is now underway to identify and secure end-customers alongside the continued advancement of the Pituffik Ilmenite Project in Greenland. During 2017 we will execute a proof-of-concept bulk sampling programmes as well as continue to define the full resource potential of Pituffik. Alongside this, environmental and social impact studies continue to progress as we move towards lodging an exploitation application. We would like to confirm to all shareholders that we continue to deliver our stated goals in a timely manner and look forward to providing further updates over the coming months. Sign up for Titanium Newsletter Updates from Bluejay management.
Focussing on the prolific Copper-Nickel belt famous for its high-grade deposits, we have identified four sub-targets for immediate drill testing.