Bluebird Merchant Ventures said the potential for re-opening the Gubong mine in South Korea was proving to meet if not exceed its expectations.
It said that mine engineers had entered the mine through an adit, the main decline shaft, as well as a newly discovered smaller decline shaft to commence the initial evaluation of the project.
- In three days the company has opened up 300 metres of horizontal development and 50 metres of shaft days
- The tunnels are approximately 1.5-1.7 metres high and 1.5 m wide, which was typical of near surface development
- The team noted a number of unmined narrow veins and took some initials samples for analysis.
- Mine geologists will start work this week on the mapping and sampling phase
- From initial inspection the Company is optimistic for the reopening of the mine
- The company can now begin to gather metallurgical samples to assess the optimum process using today's technology
Chief executive Colin Patterson said: 'The potential for re-opening the Gubong mine is proving to meet if not exceed our expectations.
'When the mine closed in 1971 the gold price was below $40 per oz. which meant that substantial ore was not economic to mine.
'Today however at a gold price of $1,275 per oz it will be economic.
'I am very pleased to see that even in exploring the first 250 metres that unmined veins are evident.
'The fact that within three days we have accessed and explored 50 metres of shaft and the first 250 metres of tunnels is a testament to both the skill and experience of our team as well as the condition and stability of the Gubong mine.
'This rapid gathering of information demonstrates how re-opening dormant mines can generate magnitudes more information and subsequent news flow when compared to an exploration drilling project.
'We will now quickly seek to delineate enough ore and resource for the first three years of mining so we can fast track the production process.
'This will in turn fund the much larger prize of the full mine and the obvious depth and lateral extensions which have clearly been identified by exceptionally good drilling results previously announced.'
At 8:06am: (LON:BMV) Bluebird Merchant Ventures Ltd Ord Npv Di share price was 0p at 2.13p