Business
Initial Scoping Study: South Korean Gold Projects
Initial Scoping Study: South Korean Gold Projects.
About this update from Bluebird Mining Ventures Ltd.
[{"type":"text","content":"\n \n \n Bluebird Merchant Ventures Ltd / EPIC: BMV.L / Market: FTSE / Sector: Mining\n \n \n 27 February 2023\n \n \n \n Bluebird Merchant Ventures Ltd ('Bluebird' or 'the Company')\n \n \n \n \n \n \n \n \n \n Initial Scoping Study at South Korean Gold Projects\n \n \n \n \n \n \n \n \n \n NPV10 of US$181m & Post Tax IRR of 111%\n \n \n \n \n \n \n Bluebird Merchant Ventures Ltd, a gold company primarily focused on bringing historic mines back into production, is delighted to announce a Scoping Study ('the Study') for its Kochang and Gubong Gold Projects in South Korea (together 'the Projects'). \n \n \n \n \n \n \n \n \n OVERVIEW\n \n \n \n • Results of the Study show excellent initial validation of the Projects' economic potential.\n \n \n • At US$1,750 gold price, for production from two operations with a cumulative c.400Ktpa VAT leach processing delivers:\n \n \n o \n 111% Post Tax Internal Rate of Return ('IRR').\n \n \n o \n US$181m net present value ('NPV') at 10% discount rate.\n \n \n o \n US$50m per annum average free cash flow generation.\n \n \n o \n US$630 per oz All in Sustaining Cost ('AISC').\n \n \n o \n Less than US$600/oz average operating cost.\n \n \n o \n Strategy to minimise risk by completing a proof of concept at Kochang to produce a small amount of gold. This relatively inexpensive exercise will provide confidence in the key parameters such as grade, recovery, production and processing, community and government support etc\n \n \n o \n Capital Expenditure ('capex')\n \n \n §\n £1m for the pre-production proof of concept\n \n \n §\n Additional US$6m to progress from proof of concept to 5Koz Au pa production at Kochang. \n \n \n §\n A further US$5m for 12Koz Au pa - of which US$3m will come from production cash surplus.\n \n \n o \n Payback period of less than 2.5 years.\n \n \n • Excellent potential to increase Mineral Resources given vein extensions in unmined areas across both mines.\n \n \n • Exploration target of 1.5Moz + gold from Kochang and Gubong.\n \n \n • Discussions with project financiers and streaming partners ongoing.\n \n \n \n \n \n \n \n \n Bluebird Merchant Ventures CEO Colin Patterson said,\n \n \n \"The numbers from this Scoping Study, including a post-tax NPV of US$181m, free cash of US$50m per annu...