Bluebird Merchant Ventures (LSE: BMV), the Asian focused resource development group, is pleased to announce an update on the Kochang gold and silver mine.
- Initial Mineral Potential of between 550,000 and 700,000 tonnes derived from a small area
- Range of grades between 5.2 g/t to 6.6 g/t of gold and 27.3 g/t and 34.8 g/t of silver
- Underground drill targets identified in close proximity to the three main veins
Bluebird has completed a review of all data to date, related to the Kochang Gold and Silver mine. As a result it has derived an initial estimate of the mineral potential available for the redevelopment of the mine. The development of this mineral potential used historical plans, production statistics, recent surface exploration mapping and sampling, historic drilling, 3D computer modelling, and recent underground surveying and grab/channel sampling.
The total estimate of the mineral potential is between 550,000 and 700,000 tonnes, with a range of grades between 5.2 g/t to 6.6 g/t Au, and 27.3 g/t to 34.8 g/t Ag. The grades and grade profile were based on the underground sampling programme carried out this year, augmented by recent surface sampling results. The tonnage range is 40% to 50% of the calculated total tonnage which is the same percentage as that of significant results obtained by sampling (RNS 23 May 2018).
The recent work carried out covers an extremely small area with obvious underground drill targets in close proximity to the three main veins. The deposit is open along strike and to depth. The company intends to commence an underground drilling programme, along with further mapping and channel sampling in other historic workings in early to mid 2019. This programme will lead to further refinement and expansion of the mineral potential and enable conversion to a mineral resource as defined by internationally accepted codes.
We note that this estimate has cost just USD 230,000. As we have previously noted, very few exploration projects ever become mines so having been underground and identified structures and mining targets has cut out much of the expensive work needed to reach this point by conventional greenfield exploration.
Colin Patterson, CEO, commented:
“Once again our team have demonstrated that our strategy of reviewing old mines which were closed down years ago with the intent of reopening them has huge cost benefits when compared to a conventional exploration model. For a relatively small outlay the team have accessed safe and usable underground tunnels and generated huge amounts of geological and production information. Our primary goal is to rapidly and safely get into commercial production in the most cost-effective manner possible, to ensure the highest investment return for shareholders. We look forward to updating the market on any developments soon.”
Note to Editors
It should be noted that Mineral Potential is akin to Geological Potential, conceptual in nature, and there has been insufficient information to define a Mineral Resource or Ore Reserve as defined under the respective international codes.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 (“MAR”)