Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Bluejay Mining (JAY:AIM) 18.5p
Gain to date: 34.5%
Original entry price: Buy at 13.75p, 13 April 2017
Shares in the mineral sands explorer have been on a strong run since late July. We attribute this success to positive feedback from an analyst site visit to its Pituffik project in Greenland and better than expected drill results.
Chief executive Roderick McIllree says the first drill hole immediately east of its current resource area has intersected ‘what appears to be extremely high-grade ilmenite bearing material throughout the entire 5.5m hole depth’. He calls this ‘a remarkable outcome’.
A new drill rig has shown minerals sands to a depth in excess of 30m in some areas. Broker SP Angel says this is ‘dramatically’ better than its depth expectations and comments that Pituffik appears to be ‘an exceptional deposit’.
‘It is too early to give an accurate estimate as to the eventual scale of the mineral sands at Pituffik but it is easy to make the assumption that the resource should expand to a significant multiple of the current and relatively conservative SRK estimate of 23.6mt grading 8.8% ilmenite,’ says the broker.
This article is provided by Shares Magazine. Shares publishes information and ideas which are of interest to investors. It does not provide advice in relation to investments or any other financial matters and does not guarantee the accuracy or completeness of the information in this article.
Investors acting on the information in this article do so at their own risk and AJ Bell Media Limited and its staff do not accept liability for losses suffered by investors as a result of their investment decisions. Shares is published by AJ Bell Media Limited part of AJ Bell.