PERTH (miningweekly.com) – A report by London-listed Bluebird Merchant Ventures has found that the Gubong gold mine, in South Korea, could be reopened and recommissioned, with production expected in late 2019.
Joint venture partner Southern Gold told shareholders on Wednesday that Bluebird had provided the company with an initial report on the feasibility of reopening the historic gold mine.
The mine was 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.
The Bluebird report found that a preconstruction phase would be required, which will include ongoing dewatering of the lower levels of the mine, and the establishment of a permanent entrance to the mine. This phase will also allow for the completion of a full feasibility to prepare for the construction of a processing plant, and the start of mining activities.
The preconstruction phase is expected to cost some $850 000, and has already started, Southern Gold said.
“The report on the feasibility of reopening Gubong is a substantive document and a lot of work has gone into its development,” said Southern Gold MD Simon Mitchell.
“While the report has not been completed to a Joint Ore Reserves Committee standard, it has been prepared by highly experienced technical personnel very familiar with the mine redevelopment scenario at Gubong.
“From my perspective, the report confirms two key things: firstly, that the project can be developed very quickly, and that secondly, the low capital intensity of the redevelopment may be even lower than first targeted.”
Bluebird was confident that the mooted reopening of the old gold mine will facilitate substantial immediate mining development with access to initial low-cost ore that could be cost effectively and quickly processed after a small scalable trial plant has been established.
The company has also indicated that the project can advance to production in late 2019, with production progressively expanded over the next five years.