REG - Bluebird Merchant - South Korean Update

Bluebird Mining VenturesAnnouncement

17/04/2023 07:00

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RNS Number : 3937W  Bluebird Merchant Ventures Limited  17 April 2023

Bluebird Merchant Ventures Ltd / EPIC: BMV.L / Market: FTSE / Sector: Mining

17 April 2023

Bluebird Merchant Ventures Ltd ('Bluebird' or 'the Company')

 

South Korean Update

 

Bluebird Merchant Ventures Ltd, a gold company primarily focused on bringing
historic mines back into production, announces an update on its gold projects
in South Korea, the Kochang Gold and Silver Mine ('Kochang') and Gubong Gold
Mine ('Gubong'), and the repayment of all outstanding loans.

 

As part of the normal process to expedite production development plans,
commencing with groundwork for proof-of-concept mining at Kochang and early
development work at Gubong, the Company applied at the end of last year for
Mountain Temporary Use Permits ('MTUP'), having already been granted
Extraction Permits by the relative provincial governments.

 

The Company's in-country advisers had been informed that the granting of the
MTUP at Kochang was imminent, with all legal obligations covered. The Board
has now been made aware that greater detail is required within 90 days for the
measures to reduce the risk of environmental impact and to conduct a
successful wider community consultation and gain of support beyond the
immediate area, which unfortunately means that local politics will come into
play over which the Company has no part. As such, the relevant authority
cannot issue the MTUP at this time.

 

The Company believes it has more than adequately covered these aspects of the
permission, but to address the newly raised additional information and support
requirements, the Company will be offering to take out insurance for
environmental liability as is common practice worldwide. Furthermore, whilst
the Company already has the formal consent of the immediate community at
Kochang, which is passionately supportive of its plans to reopen the mine,
Bluebird has scheduled to consult with the wider community in the coming
weeks, even though this is not required by law. Whilst the Board is reasonably
certain that these actions will be well received, until the issues are
satisfactorily resolved, the Company will be unable to provide exact guidance
or guarantee as to when the permit will be granted.  The Company also has a
MTUP application in process at Gubong and will now seek to extend the
application process to ensure that the above issues are taken into account in
its application.

 

On other corporate matters, the Company has agreed to repay all outstanding
loans meaning it will be debt free and has sufficient funding for the next 12
months based on its current plan.

 

Bluebird CEO Colin Patterson says, "While this is a speed bump on the path to
production, I remain convinced of the commercial merits of our projects in
South Korea and will pursue all options to achieve a successful outcome. These
are not legal issues, and we believe they are covered in the nearly 800-page
submission in the Korean language. However, we want the support of all parties
and stakeholders so will engage further to demonstrate the economic benefits
of a responsible mining project.

 

"We remain fully committed to the development of Kochang and Gubong with the
assets increasing in value with the strengthening gold price. Management have
personally invested heavily in the Company and are hugely incentivised to gain
a resolution to this situation and create value for all stakeholders."

 

"On a wider level we look forward to news from our partners in the Philippines
who are developing our Batangas Gold Project."

 

This announcement contains inside information for the purposes of article 7 of
the market abuse regulation EU 596/2014 ("MAR").

 

**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.

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