Bluejay Mining (LON: JAY) shares are down 25% on news from their Greenland projects. JAY shares fell because, well, there’s less ore there and the ore’s worse than previously thought. Or at least, that’s what it was possible to find out in this exploration season - which is another issue that we should think about. The season in Greenland is short. This would have an impact upon mining as well as the exploration work that is being carried out at present.
The major price impact comes from this announcement: “The work carried out by Palaris has concluded that the JORC Compliant Measured and Indicated Resource categories in the MRE 2023 for the Moriusaq West part of the overall resource deposit now stands at 29.7 million tonnes ('Mt') at an in situ TiO2 grade of 1.99%, whereas previously the MRE 2019 for the same part of the deposit had been 59.3Mt at a grade of 3.26% in situ TiO2.” Ah, well, yes, that’s a problem. Half the amount at half the grade means a quarter of the hoped for resource. But the problem doesn’t stop there. It wasn’t possible - that short exploration season, weather d’ye see? - to get to the other parts of the deposits to check upon those. So, given the way that we make assumptions in mining those are all downgraded as well. That might not be right of course but that is the way we do it. If those old estimates are wrong for this part of the field then until we’ve contrary evidence then we assume that they’re wrong for all parts of it.
Bluejay Mining share price from Google Finance.
Just as a little note, this is about Bluejay Mining, not Bluejay Diagnostics which is also in the news today.
We’ve also further news on the other Greenland prospect: “The geochemical, geophysical, and geological data from the 2022 exploration campaign (see Bluejay RNS dated: 10 October 2022) has now been fully integrated with existing data and interpreted by KoBold's technical team utilising their proprietary artificial intelligence ('AI') and machine learning ('ML') platforms. Significantly more data was gathered during 2022 than originally expected which has prolonged the time required to analyse the new datasets and incorporate these with historical data and observations.” Really, the message from that is that we’re years away from even getting a proper set of drilling done let alone proving that there’s something worth mining there. Yes, obviously, hopes of finding the new Norilsk but think a number of years out at best.
Oh, yes, there’s also a video interview, which is nice.
Essentially the news is that the near term prospect - the titanium - isn't as good as first thought and the nickel is as far away as ever. No wonder the price is down 25%.
