JOHANNESBURG (miningweekly.com) - Asia-focused resource development group Bluebird Merchant Ventures on Wednesday said that it had made significant progress on the Kochang gold and silver mine in South Korea, since signing its $750 000 farm-in agreement with ASX-listed Southern Gold, in February.
Bluebird is currently looking to reopen the mine, which shut down in 1975, and has gained access to the lowest level of the old mine, which was about 150 m below the surface.
Bluebird took four weeks to dewater the mine and, having opened a small collapse in the main adit, mining engineers were able to examine all the tunnels on this level.
Three veins were previously developed with some stoping done on each of them. The inclination of the veins is about 40 degrees.
The extent of the development on this level is about 3 km, with the company noting that ground conditions were excellent. The process of mapping and sampling the veins was now expected to start in about two weeks.
To date, the project has cost under $50 000, which equates to only $17 a metre opened.
Bluebird highlighted that the cost of new development would have been $3 000 a metre. "The enormous cost saving is just one of the many benefits of reopening old mines in comparison to exploration projects," it pointed out.
Over the next few weeks Bluebird expects to gain access to the level above and is confident that similar conditions will be found. Access to a second adit will also be effected giving the mine's two entry points.
Further progress has also been made at Bluebird's flagship Gubong mine, where another entry point to the top of the mine has been uncovered. It is an inclined raise, which may have been developed for ventilation purposes.
An initial examination was carried out which revealed the incline is about 25 m long and flattens out on to a presumed ore drive. Further examination would take place over the coming weeks.
With this discovery, Bluebird has now uncovered three main entry points into the Gubong mine, which is also in South Korea.
CEO Colin Patterson that the company would now focus on getting into a "cash flow situation" as quickly as possible. "There is little doubt that the programme for Kochang has been accelerated in the past week and that the potential to complete the transition to a joint venture could be completed within the next six months resulting in a decision to move into construction of the mine.
"This also allows the company to expand its programme on the far larger project at Gubong which still has the potential for a company maker," he pointed out.