Business
Kochang Permit Approval
Kochang Permit Approval.
About this update from Bluebird Mining Ventures Ltd.
[{"type":"text","content":"\n \nRNS Number : 9584W Bluebird Merchant Ventures Limited 17 December 2019 \n\n17 December 2019\nBluebird Merchant Ventures Ltd\n(the \"Company\" or \"Bluebird\")\nKochang Permit Approval\nBluebird Merchant Ventures (EPIC: BMV), the Korean focused gold development group, is pleased to announce that it has now officially received a 'Permit to Develop' the Kochang mine.\nHighlights:\n· Kochang Permit Approval\n· Low capex with initial gold production opportunity in 2020\n· Organic growth potential from 10,000 to 30,000 oz of gold per annum over 3 years\n· Non-dilutive debt funding discussions\n \nThe permit grants the holder the right to develop and operate a mine for a period of 13 years. The only constraint on the permit holder is the requirement to have production within 3 years. The permit may be extended by a further 20 year period by application 18 months prior to the end of the permit term. There are no government royalties in South Korea. \n \nThe grant of this permit by the South Gyeonsang Provincial Authority means that Bluebird has now achieved a second major milestone towards becoming the first foreign gold producer in South Korea since Ivanhoe Mines in the 1990s. Together with the Gubong permit, received on 8 November 2019, the Kochang permit provides a solid base for the company to advance into production and then grow in a substantially organic manner. \n \nThe two projects have differing qualities which give the company much opportunity for flexibility. Whilst both mines operated in similar timeframes and closed in the 1970's when the gold price was still below USD 140 per ounce, Gubong, as the onetime second largest gold mine in South Korea, was flat dipping with 9 veins extending 500 metres below surface and known, through historical exploration drilling, to extend at least a further 250m. However, the production opportunity for Bluebird prior to looking at deepening the mine is the 25 levels already developed with all the remnants and unmined areas left by the original miners. The 25 levels extend over 120 kilometres in total length which indicates the size of the opportunity.\n \nOn the other hand Kochang, is very shallow (only mined to 150 metres below s...