Name of the Project
Gubong gold mine restart.

Location
South Korea.

Project Owner/s
Southern Gold and Bluebird Merchant Ventures (BMV).

Project Description
The Gubong mine closed in 1971, predominantly owing to the low gold price at the time, combined with the mine getting deeper, low capital expenditure investment in infrastructure and the intensive manual mining method.

An initial report has determined that the mooted reopening of the gold mine will facilitate substantial immediate mining development, with access to initial low-cost ore that can be cost effectively and quickly processed after a small scalable trial plant has been established.

The report notes that a preconstruction phase will be required, which includes the ongoing dewatering of lower levels of the mine, establishing a permanent entrance to the mine, key land acquisitions and a more extensive sampling and metallurgical programme to refine process flow.

This phase will also allow for the completion of a full feasibility to prepare for the construction of the processing plant and the start of mining.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
This preconstruction phase has been costed at $850 000 for the joint venture (JV).

Planned Start/End Date
BMV has indicated that the project could advance to production late in 2019 and then progressively expand production over the next five years.

Latest Developments
The South Korean Ministry of Trade, Industry and Energy has approved the permit to develop the Gubong gold mine.

The permit marks the next important milestone in the project development, and is subject to several conditions pertaining to safety and environmental management.

The permit enables the JV partners to engage in a full-scale operation to reopen the mine and bring it back into production.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Southern Gold, tel +61 8 8368 8888, fax +61 8 8363 0697 or email info@southerngold.com.au.