REG - Bluebird Mining Vnt. - Half Yearly Report to 30 June 2024

Bluebird Mining VenturesAnnouncement

30/09/2024 07:00

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RNS Number : 1953G  Bluebird Mining Ventures Limited  30 September 2024

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

30 September 2024

Bluebird Mining Ventures Ltd

('Bluebird' or 'the Company')

 

Half Yearly Report to 30 June 2024

 

Bluebird Mining Ventures Ltd, a gold project development company, is pleased
to announce its Interim Results for the six-month period ended 30 June 2024.

 

The Company's Interim Results will be available on its website
https://bluebirdmv.com (https://bluebirdmv.com) or downloadable on the
following
link: http://www.rns-pdf.londonstockexchange.com/rns/1953G_1-2024-9-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1953G_1-2024-9-30.pdf)

 

CHAIRMAN'S STATEMENT

The highlight of the first six months of the year was the successful farm out
of the high grade Gubong Gold Mine ('Gubong' or 'the Project') in South Korea.
The staged US$5 million investment, by a consortium of South Korean
businessman with whom we have been working with for some time, provided
Bluebird with a free carry to first production in return for up to 60% of the
Project, previously the country's second largest gold mine.

 

In addition to a significant capital injection, which is non-dilutive at the
top co level, the agreement highlights the belief by both parties that the
c.1.3Moz Au Gubong Mine can be brought into production. As the gold price
indicates, there is increased appetite for investment in bullion, with
significant buying coming from Asia.  There is also regional recognition that
exposure to gold can be garnered through the participation directly in mining
projects, which can only be good news for companies such as Bluebird and the
sector.  With the gold pricing environment positive and many forecasts
pointing to increases, some beyond US$ 3,500 per oz, we envisage further
interest in our activities.

 

With our documented issues with permitting on-going, the Board recognised that
the optimal structure to advance its projects was via Joint Ventures with
local partners, who can provide an increased understanding of operating
in-country as well as corporate and planning expertise at local, district and
governmental levels.  This model was successfully implemented in the
Philippines last year at the Batangas Gold Project where a c.US$2 million
investment commitment was signed.  As a result, the work required for the
submission for the grant of a Declaration of Mining Project Feasibility for an
operating gold mine at the Lobo high-grade gold mining target has commenced,
as has the work programme for Environmental Impact Study. This forms the core
of the environmental baseline studies needed to be conducted in line with the
requirements for the issuance of an Environmental Compliance Certificate.

 

Post the period end, we also signed a JV agreement to develop the Kochang Gold
and Silver Mine in South Korea.  The Board believes that at Kochang, initial
modular production can be started between 6 to 9 months following the receival
of the relevant permitting, with the initial plan being to process via a toll
treatment agreement.  We await the outcome of the Board of Audit and
Inspection process, which despite being informed that this was a relatively
short process, it is frustratingly still on-going.

 

The US$2 million staged investment with the same consortium of local
businessman which invested in Gubong means that all three of our projects are
now under JV.  In essence, the Company has c.US$9 million committed to
develop its projects, which have an estimated cumulative 1.8Moz Au and is on a
free carry structure, greatly reducing its reliance on the capital markets.

 

To reflect this funded business model, the Board has also been restructured.
Executive Director Charles Barclay and Non-executive Director Clive
Sinclair-Poulton stepped down, and Colin Patterson moved to Non-executive
Director. Aidan Bishop, who was instrumental in signing the JVs with the
Company's South Korean and Filipino partners, is interim CEO and I remain as
Non-executive Chairman.

 

To fund the business going forward, we have entered into a binding term sheet
to provide a loan facility of up to £350,000 with Catalyse Capital Ltd, a
long running and supportive shareholder of Bluebird, as well as nominated co
investees.   The loan structure allows for us to receive capital without
having to utilise the equity capital markets, where we believe a potential
funding would be at a significant discount to the current price and therefore
unnecessarily dilutive.  Concurrently the Company is also conducting an
equity raise ("the Placing"), at a price of 1p per share through a book
building exercise that will conclude on 4 October 2024. The Placing has an
attached one-for-one warrant with an exercise price of 1.25p per share and a
12 month life.  Any net cash sums raised in the Placing will be netted on a
pro rata basis against the loan capital to be drawn, reducing the total loan
commitment.  For full details please see the Financing announcement also
released today.

 

Looking ahead, Bluebird's strategy remains focused on developing its
multi-project precious metal portfolio, with the goal of becoming a producer
achieving a cumulative annual production target of over 100,000 ounces of
gold. To this end, we continue to regularly engage with our local partners to
ascertain the optimal paths for development of all three projects.  We
believe that with our current structure we have a significantly increased
chance of navigating the planning and development processes.  Our technical
team has been on the ground in South Korea, increasing our understanding of
the opportunities at both Kochang and Gubong, and we hope to publish further
updates on the projects in Q4 2024.

 

Finally, I would like to thank everyone involved with the Company, including
our partners, for their dedication and hard work, as well as our shareholders
for their continued support. Together, we aim to deliver value for all
stakeholders.

 

**ENDS**

 

For further information please visit https://bluebirdmv.com or contact:

Jonathan Morley-Kirk    Bluebird Mining Ventures Ltd     Email:
jmk@bluebirdmv.com (mailto:colin@bluebirdmv.com)

Nick Emerson                  SI Capital
                      Tel: 01483413500

 

About Bluebird

London listed Bluebird Mining Ventures Ltd is focused on developing high
grade, low capex gold projects. With a cumulative estimated 1.8M oz Au across
three projects, including two historic mines in South Korea and a development
project in the Philippines, the Company looks to JV its assets with local
partners to provide free carry structures to advance its assets to production.

 

Bluebird recognised the most effective strategy to develop projects in South
Korea and the Philippines involved adopting a Joint Venture model; by securing
local partners with in-country operational knowledge and investment capital at
the project level, assets can be advanced to production on a de-risked basis.

 

The Company has three JV's providing a cumulative c.US$9m investment: US$5m
for the development of the historic Gubong Gold Mine and US$2m for the Kochang
Gold and Silver Mine, in South Korea and c.US$2m (funding to a production
decision) for the Batangas Gold Project in the Philippines. With committed
development capital at the project level, the Company has free carries to
production/mine construction on all its projects, which reduces its reliance
on the international capital markets.

 

Bluebird continues to provide technical assistance to these projects,
utilising its internationally experienced mining team, which has a track
record of bringing gold projects into production across Southeast Asia.  Both
JV parties recognise each sides competencies and the mutual belief that
together they can bring the projects into production and generate significant
value for all stakeholders. Importantly the management team has personally
invested cUS$2 million into the Company, highlighting their belief in the
quality of the portfolio.

 

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.

 

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 several 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.

 

Batangas is a 1,160-hectare licence with a 25-year Mineral Production Sharing
Agreement ('MPSA') granted. The Project has a current JORC compliant resource
of 440,000 ounces, including a maiden ore reserve of 128,000 ounces (including
silver credits) as well as multiple additional targets providing extensive
resource upside. 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 1,164-hectares Lobo licence.  This has an
initial Probable JORC Compliant Ore Reserves of 171,000 tons at 6.6 g/t for
36,000 ounces of gold excluding silver credits based primarily on the South
West Breccia ('SWB') area of the licence that can be mined in the first 18
months of any operation.  There is an Indicated resource of 82,000 oz Au that
is perceived as easily convertible.  Additionally, the area has multiple
epithermal and high-grade targets already identified for resource expansion
with 15km of identified mineralised structures with results across the nine
identified targets yielding excellent results.  These include 2.1m @14.4g/t
Au and 3m at 12.1g/t at West Drift, which already has an Indicated and
Inferred resource of 350,000t at 3 g/t Au, 8.35m at 18.3 g/t Au and 6.0m at
31.2 g/t Au located immediately west of the SWB Extension, 19m surface channel
sample with intersections of 19m grading 9.8 g/t Au at Ulupong and trenching
at Limestone Target yielded 3.5m at 25.9 g/t Au including 1.5m at 56.8 g/t Au.

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