NEWS

By George Collard

LONDON (Alliance News) – Bluebird Merchant Ventures Ltd said Tuesday it has submitted its mining permit for Kochang, while it expects a decision for Gubong later in the month.

Bluebird is hoping to re-develop the two historic South Korean mines, which operated during the early to mid parts of the twentieth century.

The Kochang mining application will enable Bluebird to start construction and production. It expects a decision on the Gubong application, submitted in January, on March 23.

“Since the application is largely a technical document it would be expected that in the response, clarification may be requested on some issues and the company is confident in responding positively,” said Bluebird.

Bluebird is also confident its drilling grant application to government-owned Korea Resources Corp will be accepted.

Chief Operating Officer Charles Barclay said: “We are pleased development at both Gubong and Kochang is progressing. Our team has extensive experience in reopening old mine workings such as West Rand Consolidated Mines and East Rand Pty Mines in South Africa, the Emperor mine in Fiji, Apex mine in the Philippines and the Bong Mieu mine in central Vietnam.

“Typically, such workings were closed for many years and, as is the case with our two projects in South Korea, were mined in days of much lower gold prices, less productive mining and in far less advanced processing eras.”

“We also have the advantage of much existing infrastructure in the form of developed tunnels, remnant areas developed but unmined due to pay limits of the day and broken ore not effectively cleared at closure. We also have substantial records on the two mines which were well known in their day. Gubong was the second largest gold mine in Korea for a number of years and Kochang was known for its high grade production,” Barclay added.

Shares were down 0.4% on Tuesday at a price of 2.84 pence each.

Source: Morning Star