Bluebird Merchant Ventures (EPIC: BMV), the Asian focused resource development group is pleased to announce the publication of an independent Competent Person’s Report on its extensive Gubong project and other opportunities in South Korea.
Highlights
- Gubong, which was historically the second largest gold mine in South Korea, still offers a potential resource of greater than 1 million oz of gold
- Satellite ore bodies could furthermore contain a further 300,000 oz of gold
- Gubong has 9 granted tenements covering an area of some 25 square kilometers
- This area has more than 9 stacked gold veins which were only partially extracted over the life of the mine because of the relatively low gold price (less than USD40)
- Metallurgical test work has now commenced at Gubong
- Report recognizes the huge potential of reopening the mine with the prospect of being able to delineate an immediate resource without the need for expensive exploration
The Competent Persons Report was undertaken by Geoff Boswell, MSEG, AusIMM, CPP Geology, who visited the Gubong project at the end of 2017.
The Report notes that Bluebird “Re-entering the underground workings will allow access to the mining faces and unstoped remnant ore that may contain economic ore at today’s gold price.” This will provide an immediate resource and an initial mine production plan. Bluebird is also encouraged that the Report recognizes the huge potential of reopening the mine both with the prospect of being able to delineate an immediate resource without the need for expensive exploration as well as the potential for a resource of greater than 1 million oz of gold.
The Report outlines the potential of the tailings area which was surveyed to be 143,042 m3. This can be quickly evaluated through drill holes and metallurgical study.
Over the past few months Bluebird has gained initial access to the mine and recently announced on 9 January 2018, sampling results of gold and silver that were very encouraging. Whilst the company awaits approval to expand the reopening of the mine, metallurgical test work has now commenced. The result of this work will provide greater insight into the production economics. A 2011 Economic Evaluation Study estimated a potential cash flow of over USD200million in the initial 8 years. This was postulated from the treatment of 2.7M tonnes at an average grade of 7 g/t yielding over half a million ounces of gold. The gold price used in the study was AUD1350. The regulatory climate for mining in South Korea is very supportive of mining and the government provide incentives including funding environmental protection measures. The Company expects that that formal approval for expanding the reopening of the mine will be granted during the second quarter.
There are over 1,400 abandoned gold mines in South Korea and once Bluebird has established a production base the Directors expect there to be many more opportunities available for the Company.
The Report can be viewed on the company website www.bluebirdmv.com
Further to the previous announcement on 19 December 2017 regarding Funding, the Company was approached by a substantial shareholder to participate in the funding alongside Colin Patterson which was accepted. The Company has drawn down the first GBP 150,000 of funding.
Colin Patterson, CEO, commented:
“I am pleased that the Competent Persons Report confirms the potential of the Gubong mine to be a very significant project and other projects in South Korea. We look forward to progressing the metallurgical test work in order to confirm the production economics. We will be undertaking some of the work recommended in the Report over the coming weeks and months and look forward to being able to update the market.”
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 (“MAR”)