LONDON (ShareCast) - (Sharecast News) - Greenland and Finland-focussed Bluejay Mining has been informed that the exploitation licence for the Dundas Ilmenite Project would be granted and signed by the government of Greenland in a virtual ceremon, it announced on Monday.

The AIM-traded firm said the licence was being granted to its wholly-owned subsidiary, Dundas Titanium.

It said the licence would allow Dundas to progress towards procurement, construction and ilmenite production, with it being valid for an initial period of 30 years with extensions possible.

The current pre-feasibility study mine life was 11 years, and was comprised of an onshore mineral reserve of 67 million tonnes at a 1.6% titanium oxide cut-off grade, within a JORC-compliant, indicated mineral resource of 117 million tonnes.

Bluejay said the remaining onshore indicated mineralresource included within the licence provided possibilities for "significant" increased production and an extended mine life.

There were additional significant shallow marine exploration targets both within, and adjacent to, the licence area, that could also add to the mine life.

It said the environmental impact assessment and social impact assessment studies had both been approved as part of the licence granting process, and in conjunction, the impact benefit agreement between the municipality of North-West Greenland, the government of Greenland and Dundas Titanium had also been signed.

The company said it was actively working to reduce the capital requirements and operating expenses determined in the pre-feasibility study, which would result in cost savings and alternative solutions for a "leaner and greener" operation.

Its board also noted that the award of the licence allowed Bluejay to further progress financing discussions with existing and new interested parties.

"Having had our environmental and social Impact Assessments approved during the first quarter of the year, the team, with the help of the authorities, found a mechanism for holding the successful public consultations meetings during the pandemic, which were finalised in September," said chief executive officer Rod McIllree.

"In October, the navigation safety investigation study was accepted by the Danish Maritime Authority, then reaching agreement with Greenlandic stakeholders on the impact benefit agreement, in what was a rigorous process, is now complete."

McIllree said that, in a period of "unprecedented challenges", the granting of the licence and the work completed to do so marked a successful year for the company.

"As we continue to progress the Dundas Project, it was important to finish the year strong, and we look forward to starting what will be an exciting new year, very much on the front foot."

At 1512 GMT, shares in Bluejay Mining were up 5.93% at 12.95p.

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