Bluebird Merchant Ventures (EPIC: BMV), the Asian focused resource development group is pleased to provide an update on the recently signed Kochang project. The Company has also published its Interim Report and Accounts for the half year ended 31 December 2017 on the company website.
- Rapid progress at newly signed Kochang mine achieved
- Excellent ground conditions and open development discovered
- Cost of just USD 17 per metre to open up Kochang thus far
- Publication of the Interim Report & Accounts for the half year ended 31 December 2017
- Both Gubong and Kochang are being funded led by Bluebird CEO, Colin Patterson
The Company is pleased to update on the excellent progress that already has been made at the Kochang mine so quickly after announcing that it signed the farm in agreement with Southern Gold, announced on 12 February 2018.
Bluebird has now gained access to the lowest level of the old mine, which is approximately 150 metres on ore below surface. The last time anyone was in the mine is believed to have been in 1975 when the gold price was only USD 140/oz. Bluebird took just four weeks to dewater the mine and, having opened a small collapse in the main adit, mining engineers where able to examine all the tunnels on this level. Three veins were previously developed with some stoping done on each of them. The inclination of the veins is approximately 40 degrees. All the development was found to be open. The extent of the development on this level is approximately 3 kilometres. Ground conditions are excellent. The process of mapping and sampling the veins is expected to commence in about two weeks.
To date the project has cost under USD 50,000 which approximates equates to only USD 17 per metre opened. The cost of new development would have been approximately USD 3,000 per metre. The enormous cost saving is just one of the many benefits of reopening old mines in comparison to exploration projects.
Over the next few weeks Bluebird expects to gain access to the level above and is confident that similar conditions will be found. Access to a second adit will also be effected giving the mine’s two entry points. Opening up the Kochang mine was considered to be able to achieved easier and quicker than the Gubong mine and this has certainly been borne out by our progress the Company has made in less than one month.
Further progress has also been made at the flagship project, the Gubong mine, where another entry point to the top of the mine has been uncovered. It is an inclined raise which may have been developed for ventilation purposes. An initial examination was carried out which revealed the incline is about 25 metres long and then flattens out on to what we presume is an ore drive. Further examination will take place over the coming weeks. With this discovery, Bluebird has now uncovered three main entry points into the Gubong mine.
Colin Patterson, CEO, commented:
“Our strategy is to get into a cash flow situation as quickly as possible. There is little doubt that the programme for Kochang has been accelerated in the past week and that the potential to complete the transition to a Joint Venture could be completed within the next six months resulting in a decision to move into construction of the mine. This also allows the company to expand its programme on the far larger project at Gubong which still has the potential for a company maker.”
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 (“MAR”)