PERTH (miningweekly.com) – LSE-listed Bluebird Merchant Ventures was still targeting its first gold pour in South Korea before the end of 2019, joint venture (JV) partner Southern Gold reported.
The JV is hoping to bring the Gubong and Kochang mines back to operation, with Bluebird expecting cash flow from the operations by 2020.
“This is an extremely rapid development timefame and points to South Korea’s unique regulatory regime and support for mine development,” said Southern Gold MD Simon Mitchell.
The JV has submitted documentation to secure the key ‘permit to develop’ the Gubong mine, and feedback is expected within 40 days.
Gubong closed in 1971 owing to low gold prices, and had an historic production of 430 000 oz of gold and 110 000 oz of silver over an intermittent production period between 1926 and 1971.
Bluebird has also submitted a feasibility study to Southern Gold to reopen the Kochang project, and has applied for funding support for drilling activities from government entity Korean Resources Corporation.
“Over the next few months, further work will be done by Bluebird to refine the development scenario for either Kochang or Gubong, or possibly an integrated development of both in parallel,” said Mitchell.
“Whatever final development scenario is selected, it will be designed to keep capital costs low, development timeframes tight and achieve cash flow from operations as soon as possible.”