Kochang Permit to Develop Application Submitted and Gubong Mine Update

March 12, 2019

Bluebird Merchant Ventures (EPIC: BMV), the Asian focused resource development group, is pleased to announce that the application for the ‘permit to develop’ the Kochang Mine was submitted on 8 March 2019.

Highlights:

 

  • Application submitted for ‘permit to develop’ Kochang Mine
  • Response to Gubong ‘permit to develop’ application expected around 23 March
  • KORES application success expected in March

 

Kochang Mine Update

The Kochang Mine area is currently held under the name of Geochang Project Co. Ltd (the Joint Venture company).  The application for the ‘permit to develop’ the Kochang Mine will enable the mine to enter the construction and production phases.  The application is a technical document and will be in the public domain for a period of forty working days.

The Kochang Mine previously operated from 1928 to 1975.  The gold price at the time of closure was USD140/oz. The area mined was only to a depth of 150 metres.  This type of deposit typically extends to one kilometre in depth, which is one indication of the potential of the mine.  

KORES grant application update

The Company announced on 6 February 2019 that an invitation was given by the South Korean government owned Korea Resources Corporation (“KORES”) to apply for a drilling grant.  This application was submitted on 30 January 2019. KORES personnel have undertaken two site visits to review the planned underground drill programme and the Company remains confident that the application will be accepted this month.  The purpose of the assisted drilling programme is to support mining activity. The success criteria of the scheme is that the supported programmes result in operating mines.

Gubong Mine Update

The Gubong Mine is currently held in the name of the Joint Venture Company, Gubong Project Co Ltd.  An application for a ‘permit to develop’ the mine was submitted on 23 January 2019. Taking into account the Korean New Year Holidays, the company expects to receive a response around 23 March 2019. Since the application is largely a technical document it would be expected that in the response, clarification may be requested on some issues and the company is confident in responding positively.  

The Gubong Mine previously operated from 1908 to 1971.  The gold price at the time of closure was USD40/oz. The area mined was to a depth of 500 metres.  These type of orogenic deposits typically extend to well over 1.5 kilometres in depth, which is a major factor in determining the potential of the mine.  Old drill holes from the 1990s intersected the system a further 250 metres below the bottom of the current workings.

Bluebird remains confident that it will achieve the target previously announced of bringing about production in South Korea during the fourth quarter of 2019.

 

Charles Barclay, COO, commented:

“We are pleased that development at both Gubong and Kochang is progressing. Our team has extensive experience in reopening old mine workings such as West Rand Consolidated Mines and East Rand Proprietary Mines in South Africa, the Emperor Mine in Fiji, Apex Mine in the Philippines and the Bong Mieu mine in central Vietnam. Typically, such workings were closed for many years and, as is the case with our two projects in South Korea, were mined in days of much lower gold prices, less productive mining and in far less advanced processing eras.

“We also have the advantage of much existing infrastructure in the form of developed tunnels, remnant areas developed but unmined due to pay limits of the day and broken ore not effectively cleared at closure. We also have substantial records on the two mines which were well known in their day. Gubong was the second largest gold mine in Korea for a number of years and Kochang was known for its high grade production”

 

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