StockMarketWire.com - Mining company Bluejay Mining said it had signed a memorandum of understanding with a commodity trading firm to place nearly half of its planned ilmenite production from its Dundas project in Greenland.

The agreement would target 200,000 tonnes a year of ilmenite as part of ongoing commercial discussions.

Bluejay also said that Rio Tinto's iron and titanium division had delayed the agreed smelter trial until 2021.

Bluejay Mining's pilot plant located in Contrecoeur had commenced operation in February and had been running at full capacity for several weeks.

'The first batch of the bulk sample made for RTIT has been stored by Bluejay at RTIT's request. The smelter test is a key part to our joint agreement, and we look forward to progressing the joint activities and the overall assessment of the components of the Dundas ilmenite project once things subside,' the company said.

Bluejay said it had postponed plans to build to complete the various field programmes at Kangerluarsuk and Disko amid a lack of visibility on when the current government-imposed restrictions to tackle the Covid-19 virus would be lifted.

But the company also said it would continue to review in the event that the lockdown was lifted early enough to recommence operations this season. 'In support of this, we continue to undertake a significant amount of desktop work in order to further define our key drill targets and discover further and future value creating opportunities within Greenland,' it added.



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