High grade gold grab samples at Gubong

January 9, 2018

Bluebird Merchant Ventures (EPIC: BMV), the Asian focused resource development group is pleased to announce the results of preliminary ‘grab samples’ from the Gubong gold mine.

Highlights

  • Encouraging assay results indicating that a significant amount of gold remains unmined at Gubong
  • 10 of 15 samples returned gold grades of over 1 g/t with 3 returning grades of 10 g/t and over
  • 12 of the 15 samples returned silver grades of 10 g/t and over
  • The grades indicate ore body structure

The samples were taken after engineers gained entry into the old workings at Adit 4 and from spillage in Decline Shaft Number 2.  All the samples were taken from fines or broken ore lying on the ground.  The results, as tabulated below, represent the fact that the old workings have significant amounts of gold which were left in the form of broken ore that was never taken to the process plant.

Of upmost significance are the spillage samples taken in the shaft (KRA200011 – KRA200015).  They imply that the ballast under the tracks of each level used to transport ore for several years is likely to carry gold – yet another source of early cheap production.  The Gubong mine could potentially have 30 to 40 kilometres of railed tunnels that was used to transport gold.

The Gubong mine is an orogenic deposit.  Orogenic ore bodies typically have a depth of 2 kilometres.  The Gubong mine currently has a depth of 500 metres.  Historical drill results that were previously announced on 3 October 2017 indicate that the structure continues below the 500 metre level so the mine has significant upside potential.

Sample Number Location Date Sample Type Gold (g/t) Silver (g/t)
KRA200006 Adit 4 18-10-2017 GRAB 1.00 17.00
KRA200007 Adit 4 18-10-2017 GRAB 21.00 17.00
KRA200008 Adit 4 18-10-2017 GRAB 7.00 10.00
KRA200009 Adit 4 18-10-2017 GRAB 7.00 10.00
KRA200010 Adit 4 18-10-2017 GRAB 1.3 40.00
KRA200011 Decline 2 18-10-2017 GRAB 6.7 20.00
KRA200012 Decline 2 18-10-2017 GRAB 13.3 17.00
KRA200013 Decline 2 18-10-2017 GRAB 10.0 13.00
KRA200014 Decline 2 18-10-2017 GRAB 3.1 8.00
KRA200015 Decline 2 18-10-2017 GRAB 1.2 12.00

Charles Barclay, COO, commented:

“The gold price was around USD 40/oz when the mine closed.  These results demonstrate that many areas of the mine were undoubtedly left unmined due to what was, at the time, unpayable grades.  Furthermore, the potential for processing cheap payable tonnes in a short space of time is good.  Our initial goal is to delineate sufficient ore to support the first three years of profitable mining within the upper regions of the mine growing to an annual production of 30,000 oz.  Thereafter we will continually scale up annual production as we access the lower regions of the mine.”

Colin Patterson, CEO, commented:

“The sheer size of the Gubong gold mine becomes more evident as we make progress.  The fact that such good results have been seen from the first few hundred metres of the mine is very encouraging.  The mine has over 120 kilometres of underground tunnels and was South Korea’s second largest gold mine.  I am confident that the Gubong project will deliver significant value to shareholders.”

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 (“MAR”)