Bluebird
Merchant Ventures Ltd / EPIC: BMV.L / Market: FTSE / Sector:
Mining
2 April 2024
Bluebird Merchant Ventures
Ltd
('Bluebird' or 'the
Company')
South Korea
Update
JV model approach for South
Korean gold mine
Bluebird Merchant Ventures Ltd, a
gold company primarily focused on bringing historic mines back into
production, is pleased to announce that its management has just
completed a round of meetings with a South Korean entity regarding
a partial farm out and free carry to production for the Company's
100% owned Gubong Gold Mine ('Gubong').
Gubong, the larger of the Company's
two 100% owned gold mining projects in South Korea, was
historically the country's second largest gold mine and where the
Korea Resources Corporation estimated a resource of 2.34 million
tonnes at c.7.3g/t Au garnered from 57 drill holes over 17,715.3
metres. It is an orogenic deposit, which typically have depths of
up to 2km compared to Gubong's current defined depth of only c.500m
which translates into significant potential upside.
The value of Gubong and the Kochang Gold and
Silver mine ('Kochang'), the smaller of the Company's South Korean
projects, was highlighted in a Scoping Study published in 2023,
which included a post-tax NPV of US$181 million, free cash flow of
c.US$50 million per annum, an IRR of 111% and a US$630 per oz All
in Sustaining Cost ("AISC"). The study was conducted on a US$1,750
per oz gold price compared to the current price of c. US$2,200 per
oz.
The JV model structure has already
been implemented at the Company's Batangas Gold Project in the
Philippines, where an Environmental Impact Study is presently
underway and is fully funded by a local group with decades of
experience in mining.
With regards to Kochang, the Board
has also consulted with its legal advisors on the Board of Audit
and Inspection process and has been informed that the review is
still being processed.
Bluebird CEO Colin Patterson said, "The team was on the ground
last week and concluded highly positive meetings with the South
Korean entity, with whom we have been working informally over the
last year, regarding the optimal collaborative structure for the
development of Gubong. Drawing from our successful experience
in the Philippines, we are convinced that the discussed JV model,
which would secure a free carry for Bluebird to anticipated
production, is the optimal structure to unlock value. We remain
confident of finalising a comprehensive agreement in the very near
future and thereafter delivering hoped for transformative returns
to our shareholders."
**ENDS**
For
further information please visit https://bluebirdmv.com or
contact:
Colin Patterson
Bluebird Merchant Ventures Ltd
Email: colin@bluebirdmv.com
Nick Emmerson
SI Capital
Tel:
01483413500
About Bluebird
Bluebird Merchant Ventures Ltd
(BMV.L) is a London listed South Korea-focused resources company
centred on bringing historically producing gold mines back into
production. The Company, led by a team of proven mine
rehabilitation experts, currently has two 100% owned licensed high
grade narrow vein mining projects, the Kochang Gold and Silver
Project ('Kochang') and the Gubong Gold Project ('Gubong'), which
each have a defined route to low cost/ low capex production with a
cumulative target of producing 100,000 oz + Au per
annum.
The management team has invested
cUS$2 million personally into the Company and believe, following
analysis of historic production and exploration data, as well as
extensive sampling, geological, geophysical, and engineering
studies, there is potential for in excess of 1.5 million oz of
mineable gold in its Korean projects alone.
Kochang is an epithermal vein
deposit with parallel vertical ore bodies covering 8.3 sq km that
reportedly produced 110,000 oz of gold and 5.9 million oz of silver
between 1961 and 1975. Consisting of a gold and silver mine,
there are currently four main veins and a number of parallel
subsidiary veins vein which have been identified, as well as a
newly identified cross-cutting vein. Historic drilling indicates
the veins continue to depth below the current 150m mine and mapping
shows the veins on surface providing potential above and below the
old workings. The veins extend to the NE providing a strike length
of 2.5km with 600m between the two mines not exploited. There
is potential to expand operations to the southwest/northeast and to
depth, as well as exploit the already mined areas. The total
resource potential is between 550,000 and 700,000 tonnes, with a
range of grades between 5.2 g/t to 6.6 g/t gold, and 27.3 g/t to
34.8 g/t silver. Following the granting of a Mountain Use
permit, there is an estimated 6-to-9-month development time to
trial mining.
Gubong, which was historically the
second largest gold mine in South Korea has 9 granted tenements
covering c.25 sq km. Gubong is moderately dipping with 9
veins extending 500m below surface and known to extend at least a
further 250m. However, 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 120km in total
length which indicates the size of the opportunity. The Korea
Resources Corporation ('KORES') estimated 2.34M tonnes at some
7.3g/t Au garnered from 57 drill holes over 17,715.3 metres.
With additional sampling, mapping, pit modelling and grade
analysis, plus the fact that 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 geological potential of 1 million
+ oz Au in-situ, plus an estimated additional 300,000 oz Au from
satellite ore bodies.
Additionally, the Company has the
highly prospective Batangas Gold Exploration Project in the
Philippines, where it has an agreement with a Philippine company,
whose owners have decades of experience in mining, to develop the
Project. The JV covers the entire Batangas Project area,
which has a current JORC compliant resource of 440,000 ounces,
including a maiden ore reserve of 128,000 ounces (including silver
credits). Exploration expenditure to the tune of c.$20m has already
been invested. Work is focused on completing exploration and
environmental work programmes initially targeting the high-grade
Lobo area, although there is excellent exploration potential across
the licence with high-grade targets already identified and 14km of
identified mineralised structures. The staged agreement is
based on the JV partner achieving defined development goals and
provides Bluebird with a free carry on the development of Batangas
with a view to advancing to construction.