LONDON (Alliance News) - Resource development company Bluebird Merchant Ventures Ltd said Tuesday it has completed a feasibility report on re-opening the Gubong mine in South Korea.
Bluebird report states that a "low capital cost mine at Gubong is achievable".
The company did say, however, to reduce risk and improve the accuracy of the report, further work will be undertaken prior to making a decision to start construction.
The report has been returned to Bluebird 50% joint venture partner Southern Gold. A production timetable has been set with first gold pour targeted for the fourth quarter of 2019 - where its is expected to produced 100,000 ounces of gold per annum within five years.
Chief Executive Officer Colin Patterson said: "The great news for shareholders is that the cost of reopening old mines is just a fraction of that of a new mine. Our projects have substantial existing development and we have already identified some of the initial low cost resource available to be processed into gold. Gubong has all the makings of becoming a 'company maker' and we look forward to advancing the project towards our production goals."
Shares in Bluebird Merchant were down 3.7% Tuesday at 2.60 pence each.
Bluebird Merchant Venture (BMV)