Gubong, which was historically the second largest gold mine in South Korea has 9 granted tenements covering c.25 sq km. It is flat dipping with 9 veins extending 500m below surface and known to extend at least a further 250m. The production opportunity for Bluebird prior to looking at deepening the mine is the 25 levels already developed with all the remnants and unmined areas left by the original miners. The 25 levels extend over 120 km in total length which indicates the size of the opportunity. The Korea Resources Corporation (‘KORES’) estimated 2.34m tonnes at some 6 g/t Au garnered from 57 drill holes over 17,715.3 metres. Gubong is an orogenic deposit, which typically have a depth of 2km compared to the current depth of 500m. The Board believe it has a potential resource of 1 million + oz Au in-situ, plus an estimated additional 300,000 oz Au from satellite ore bodies. Production at Gubong in the medium-term target is c.60,000oz Au with a long term potential of 100,000oz per annum.
Rationale for Gubong
The Gubong mine is highly prospective. Mine studies, geological modelling, metallurgical testing and previous data all point to the potential for a low capital intensity operation using simple process gravity separation or vat leach. With excellent infrastructure and a team with a track record of developing similar deposits, there Gubong represents an opportunity to develop up to 100,000 oz Au production via implementing a low risk development path.