Bluebird Merchant Ventures (EPIC: BMV), the Asian focused resource development group is pleased to announce that it has completed the report on the feasibility of reopening the Gubong mine, and delivered it to its partner, Southern Gold.
- Report on the feasibility of reopening the Gubong mine has been completed
- The pre-construction phase has commenced
- Production timetable on schedule, targeting first gold pour in the fourth quarter of 2019
This feasibility report is the final deliverable needed for the formation of the 50:50 joint venture with Southern Gold. Ongoing costs will now be shared equally between the two partners, with Bluebird as the operator of the joint venture. The work carried out by the Company over the past 12 months supports its previously stated view that the establishment of a low capital cost mine at Gubong is achievable. To reduce risk and improve accuracy, further verification work will be undertaken prior to making a decision to start construction.
The pre-construction work programme at Gubong encompasses further exposure of the underground workings to allow for additional sampling and subsequent metallurgical test work. This will increase the initial mine inventory and reduce risk.
Following the progress at the project to date, it appears that Gubong will be the first mine, in the Company’s portfolio, to produce gold next year.
Colin Patterson, CEO, commented:
“We are delighted that such progress has been made towards the commencement of our joint venure partnership with Southern Gold for the Gubong mine. They are proven partners who will share both their expertise and the projects’ ongoing costs. We look forward to a productive working relationship.
“The report on the feasibility of reopening the Gubong mine has further bolstered our expectations for the project. We continue to expect that first gold will be produced at Gubong in the fourth quarter of next year and that output can be increased to 100,000oz per annum within five years.”
“The great news for shareholders is that the cost of reopening old mines is just a fraction of that of a new mine. Our projects have substantial existing development and we have already identified some of the initial low cost resource available to be processed into gold. Gubong has all the makings of becoming a ‘company maker’ and we look forward to advancing the project towards our production goals.”
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 (“MAR”)