Bluebird Merchant Ventures (EPIC: BMV), the Asian focused resource development group is pleased to announce the fourth quarter strategy for both of its South Korean mining projects, Gubong and Kochang.
- Feasibility report for reopening Gubong completed
- Joint Venture with Southern Gold at Gubong commences
- Less than USD 20,000 of required farm in expenditure at Kochang outstanding
- Kochang feasibility report expected in fourth quarter of 2018
- Joseph Lee appointed as President of Joint Venture company
- Graeme Fulton appointed as General Manager of the Gubong project
Bluebird completed the feasibility report for reopening the Gubong mine at the end of July. The submission of the report was the final requirement for the commencement of the Joint Venture with Southern Gold. As previously announced, costs are now shared 50:50 with Southern Gold and Bluebird is the Joint Venture manager.
Over the next four months, the Joint Venture will introduce itself as the future developers of the Gubong mine to all stakeholders and complete the application for a ‘Permit to Develop’. Bluebird expects to receive the necessary permissions within this period. Thereafter, it is anticipated that physical work at the mine will ramp up. The emphasis over the fourth quarter will be on opening up more of the mine and reviewing the potential tailings dam project. Furthermore, suitable sites for the process plant will also be evaluated.
Bluebird continues to initially target low capex gold production of 10,000 oz per annum commencing during the fourth quarter of 2019 and for production to increase to 100,000 oz of gold per annum over a five-year period. The capital costs are significantly less than bringing a new mine into production.
Bluebird anticipates that it will soon be able to update the market on the progress of its Joint Venture with Southern Gold at the Kochang project. At Kochang, metallurgical test work is under way and results are expected by the end of October. Bluebird expects to submit the feasibility report on Kochang to Southern Gold by the end of October 2018. The feasibility reports are high level reports outlining the path towards reopening the mines and bringing about production. Furthermore, less than USD 20,000 of remaining farm in expenditure at Kochang is outstanding.
At both projects, as development progresses, Bluebird will be increasing gold inventory by means of systematic sampling and underground diamond drilling. The results obtained will form the basis of the initial JORC compliant Resources.
Joint Venture Appointments
Bluebird has appointed Joseph Lee as President of the Joint Venture Company. Joseph has spent the last five years in the Korean mining sector managing relations with government, corporate and community stakeholders.
Graeme Fulton, who joined Bluebird in April 2017, will be the General Manager of the Gubong project. Graeme has been involved in the mining industry for more than thirty years including as a Mining Engineer and General Manager. He has worked in New Zealand, Canada, Malaysia, Papua New Guinea, Vietnam, South Africa and Australia. He has expertise in geological modelling and evaluation, resource and reserve definition, mine design and scheduling, feasibility studies and due diligence. Graeme is a Fellow of the Australian Institute of Mining and Metallurgy.
Colin Patterson, CEO, commented:
“We are delighted with the progress which has been made at Gubong and Kochang. We are especially pleased to welcome Joseph to our team and are very glad that Graeme has accepted the position of General Manager. Their wealth of experience will further strengthen our already highly capable team. I look forward to working with them to reach our targets at both Gubong and Kochang. Furthermore, I will enjoy the chance to update the market as to our progress in the coming months.”
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 (“MAR”)