The Geological Survey of Denmark and Greenland ("GEUS") has estimated that 10 billion tonnes of ilmenite exist in the original rock within the entire Thule region, with a further 7 billion tonnes of ilmenite present in the form of placer ilmenite.

The “black sand” ilmenite deposits along this south-facing stretch of coastline on Greenland’s Steensby Land peninsula are quite unusual in that they remain relatively proximal to the original source rock in the raised hinterland. It is likely that a combination of glacial and fluvial erosion has deposited the heavy minerals at the coast, where the action of the waves and changing sea-levels along with the high specific gravity of the material has over time led to more concentrated ilmenite-bearing deposits.

Other heavy minerals in the black sand in the Dundas project area include magnetite (iron-oxide mineral), pyroxene and amphibole (silicate minerals). Additionally, the black sands in the project area also contain a high proportion of lighter coloured and less dense ‘normal sand’ minerals such as quartz, feldspars and micas. All sand minerals in the Dundas project area are non-harmful, not toxic, and do not contain radioactive isotopes.

The mineralised zones at Dundas broadly cover four types of terrain:
- Raised Beaches: refers to the dunes up to the base of the escarpment, containing ilmenite accumulations over widths of more than 1km, of unknown depths, along more than 30km of coastline.
- Active Beaches: refers to the area seaward of the frontal dunes, including the beach, tidal zones and surf zone
- Drowned Beaches: refers to the areas seaward of active beaches, i.e. submerged mineral sand deposits on the seabed.
- Iterlak Delta: refers to deltaic heavy mineral deposits discovered in the Iterlak estuary area.

BlueJay expects to mine the ore (which is essentially black sand) using automated continuous surface miners that harvest the sand with rotating cutter-heads. Drilling and blasting should not be required. The PFS is based on the assumption that a fleet of trucks will then be used to transport the mined ore to the wet processing plant.

The rejected material from the gravity circuits – i.e. the light minerals – will be transported back to be combined with mining waste and oversized screened material, and will then be backfilled into the mine cuttings. The backfilled raised beach areas will be rehabilitated with the previously removed organic-bearing top-soil material. The company expects there to be no discernible impact to the original environment after the final layer of topsoil is replaced and the area remediated back to its natural state.

Once transported to the processing plant, raw mined material will be screened to remove th largest particles and heated in a rotary kiln for de-icing. The screens and rotary kiln would be mobile to ensure they can be moved to new positions (relocation every 2-3 years) and follow the operational area for the continuous surface miners.

The mined, screened sand will then be separated in the wet plant into two fractions – heavy minerals (~10% by volume) and light minerals (~90%) - through two types of gravity separation: the first phase consists of two stages of spirals circuits; and the second phase will use an upward current classifier, a technique often used in the sorting of sands.

It is expected that the gravity separation will be able to use seawater, with no adverse impact on the quality of the final product and no freshwater required. No crushing or grinding will be necessary to liberate the minerals and no chemical reagents will be used to separate the desire ........