Rio's subsidiary, Rio Tinto Iron and Titanium Canada, will carry out the analysis, including a smelter test sample to be assessed at the Sorel-Tracy plant in Quebec, Canada.

Bluejay said while the two companies would work together to review and improve on the technical work completed on Dundas to date, Rio could pull out at any time and there was no guarantee the ilmenite assessment would lead to any future transaction.

CEO Roderick McIllree said delivery of a large bulk sample to the Sorel-Tracy plant would be a key outcome for Bluejay. 

"We  believe  that  the  ilmenite  from  Dundas  will  prove  to  be  a  very valuable material for the Sorel-Tracy plant operation and believe that the experience and expertise  from  Rio  Tinto  will  provide  an  opportunity  for  technological  and  economic optimisation," he said.
 
He added the company would continue to drive Dundas towards permitted exploitation and expected to continue to expand the resource base both onshore and offshore.

Dundas has a current JORC-compliant mineral resource of 101 million tonnes grading 7.1% ilmenite.

"Consequently, we are now able to refocus some of our attention to our other significant and high-value projects namely Disko, Kangerluarsuk and Finland," he said.

At 10.2p (US12.92c), Bluejay's shares (AIM:JAY) have dropped 26% since the start of the year.