REG - Bluebird Merchant - Batangas Gold Project Update

Bluebird Mining VenturesAnnouncement

25/05/2022 08:31

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RNS Number : 7001M  Bluebird Merchant Ventures Limited  25 May 2022

Bluebird Merchant Ventures Ltd

("Company" or "Bluebird")

Batangas Gold Project Update

Bluebird Merchant Ventures (EPIC: BMV), the South Korean focused gold
development group is very pleased to announce an update on the Batangas Gold
Project in the Philippines.

Highlights:

·    Application has now been made for a further two-year extension of the
exploration period of the Mining Permit;

·    Proposed work program to focus on the potential of underground mining
at Lobo;

·    Project benefits from existing JORC compliant resources and reserves;

The Company's Batangas Gold Project has been under care and maintenance since
2016.  In recent months there have been strong indications of a more
favourable policy in the Philippines towards responsible mining and which has
now presented an opportunity for the Company to revive the gold project.

The Batangas Gold Project consists of two Mineral Production Sharing
Agreements (MPSA), which are permits that are valid for a period of
twenty-five years and that can be renewed for a further period.  The permits
consist of periods of exploration and once two further key permissions are
granted then allow for production.

Approximately USD 20 million of historical exploration work has been incurred
at the Batangas Gold Project and there are substantial JORC compliant
resources of approximately 440,000 ounces of gold.

The mineral resources at Lobo, Batangas are associated with a linear, steeply
dipping, epithermal lode with high grade 'shoots' of mineralisation.  In June
2016, the previous partner announced to the Australian Securities Exchange it
had developed Probable JORC Compliant Ore Reserves at Lobo of 171,000 tons at
6.6 grams per ton for 36,000 ounces of gold excluding silver credits.  This
included 150,000 tons at 6.4 grams per ton from the upper 80 metres of the
mineral resources at Lobo.  This ore could be mined and processed within the
first eighteen months of production.

The Company has made an application for a further two-year period of
exploration to be granted and has proposed an Exploration Work Program and
Environmental Work Program to focus on the potential for underground mining at
Lobo.  The Company's previous partners had presented the project as an open
pit mine but they were not able to secure the further key permissions. The
Company believes that by using its core competencies of underground mining and
repurposing the project from an open pit mine to an underground mine focused
around Lobo, that the project will have minimal surface environmental impact.

The Company has submitted the application and subsequent work programs and is
thus encouraged to report that it has received a favourable response.  The
Company will update the market as the application progresses.   Despite this
unexpected opportunity the Company remains fully focused on its South Korean
projects.

Colin Patterson, CEO, commented:

"Reviving the Batangas Gold Project is a fantastic and unexpected opportunity
to create value for shareholders.  Approximately USD 20 million of historical
expenditures have currently been written down to zero in our accounts.
Should the application be granted this will immediately resurrect the value of
this project.  I have always been an advocate of responsible mining that
focuses on safety and the highest environmental standards. Looking at the
potential for underground mining is absolutely the best way forward for the
projects that will both create value in the local communities whilst ensuring
minimal surface impact. Bluebird continues to move forward with renewed vigour
on all fronts."

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION EU 596/2014 ("MAR").

Enquiries:

Bluebird Merchant Ventures Ltd

Jonathan Morley-Kirk, Non-Executive
Chairman
jmk@bluebirdmv.com

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