Bluebird Merchant Ventures awaits green light for South Korean gold mines
is awaiting a green light from the South Korean government to reopen and develop both of its gold assets in the country. Investors will be closely watching the progress of both applications.
The Kochang Mine application was submitted on the 8th of March 2019, which if granted will permit the AIM listed company to enter construction and production phases. It was previously operated from 1928 to 1975, when the price of gold was 140/oz. It was mined to a depth of 150m, while a deposit of this type typically extends to 1km in depth.
The mine application for its Gubong permit was submitted on the 23rd of January 2019. It expects a response on the 23rd of March 2019. The Gubong mine was operated from 1908 to 1971, when the price of gold was 40/oz. It was mined to a depth of 500m, while this type of orogenic deposit typically extends to over 1.5km in depth.
Furthermore, the South Korean government owned Korean Resources Corporation recently invited Bluebird to apply for a drilling grant which was submitted on the 30th of January 2019. It was after the corporation undertook two site visits and reviewed Bluebird’s planned underground drill programme. It is part of a South Korean government scheme to support operating mines in the country.
Bluebird told investors it is confident it will bring about gold production in South Korea in Q4 2019.
Charles Barclay, COO, said: "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.”
Bluebird has access to substantial records on both of the two mines. Gubong was once the second largest gold mine in Korea, and Kochang was known for its high grade production.
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