FinnAust Mining Plc (LON:FAM) Managing Director Rod McIllree caught up with DirectorsTalk for an exclusive interview to discuss the game changing volumes of potentially high grade titanium at their Pituffik Titanium Project
Q1: Indeed. I was just going to say, more good results continue to flow. Rod, could you give us a bit of background into what these surveys are before you tell us about the results?
A1: Yes, sure. I guess one of the historical ideas that surrounded Pituffik was that the onshore ilmenite concentrations had been known about for quite some time, it was an in-house geological concept I guess that was generated by our exploration manager that sought to determine whether these accumulations extended into the offshore environment. So the process to test that theory is a combination of a boat towed sort of sonar if you like that measures two things, one is the depth of the water and the second is the thickness of the sediment that sits on the bed rock on the sea floor and that programme was executed in 2015. So that’s what today’s results are reflecting and pretty positive, we’re pretty pleased with those developments.
Q2: Who are or who is GEUS and why is it that you’re utilising their services?
A2: GEUS is the acronym for the Geological Survey of Denmark and Greenland and they have been active, as the name suggests, in Greenland for decades, ever since I guess there’s been that formal relationship. So GUES have extremely broad and deep experience, it is a government sponsored institution that has highly skilled professional academic and explorationists, mineralogists and technicians and what we find is that their experience in Greenland allows us to save a lot on exploration costs that otherwise would have been borne by the company in terms of having to own some of this equipment, having to engage more public contractors, if you like. So we just find that they’re a good fit for us, they’re a very professional outfit and they can move quickly and generate high quality output, there’s been a number of scientific publications that have been put down on Pituffik over the last 3-4 months based on their work that was contracted to us that investors can track down or contact me for copies of if they like.
Q3: Brilliant. Now the big question I guess is what do these results means as it sounds as though quite significant?
A3: Yes, look these results I guess Giles actually even surprised us. We had felt that the concept, the geological model, was sound but I think what has surprised even GUES in actual fact is that the volume of this material. Whilst the onshore representation of this set of sedimentary horizons, if you like, is a high grade pure ilmenite deposit, we didn’t really think that offshore environment would host such large volumes of this material. It just changes the game for us and you know it’s highly pleasing Giles that the results have come in as they have, there are areas there of plus 20 metre thick accumulations of ilmenite for each sediment. Once I think the overall volume of material is better understood by the market, I think it will certainly propel the Pituffik project, I think everybody understood that it was always a very high grade project and today is the first of several announcements in terms of the volume of this over the next 6-12-18 months but certainly now the Pituffik project has been propelled in terms of volume so that, I guess, is exciting for us. We see the sort of next 3-6 months will be returning the sampling programme from 2015 and the 2016 work programme will be announced so all in all it’s been a positive development.
Q4: So where to now for FinnAust Mining and what can investors or interested parties expect from here?
A4: From now, I guess the first couple of months of this year really are focusses on getting the results out to the market from the 2015 work programme and all of the processes therein specifically the transfer of the licence to FinnAust which is with the Greenland regulators at the moment, the extension of the licence to cover this offshore area. Probably just a quick note on that, there is no ability for any other party to lodge a licence over this area, we actually have the onshore licence and offshore licences are extensions of the onshore licence, if that makes sense, so we’re not concerned that it’s taking time to make that application. The strategy in FinnAust Mining at the moment is to secure the transfer then move to the application for the expanded offshore marine environment and the results, as mentioned. Now I think once all of these processes have been completed, the objective then will really revolve around production, getting this bulk sample proof of concept production underway in late 2017. Now to do that we need to do several key things and that’s going to come with the appointment of some pretty high profile recognisable names fairly shortly we believe and really focussing on the permitting and the timelines therein for that exploitation licence in Greenland. So a lot of news coming up, the results continue to roll in of this magnitude for Pituffik then it’s going to make the overall process here much much simpler and much quicker so we’re pleased with everything to date Giles, things are moving exactly according to plan.
