Bluebird Merchant Ventures Limited Mining Engineers Enter Gubong Mine (3914U)
24 October 2017 - 5:00PM
UK Regulatory
TIDMBMV
RNS Number : 3914U
Bluebird Merchant Ventures Limited
24 October 2017
24 October 2017
Bluebird Merchant Ventures Ltd
(the "Company" or "Bluebird")
Bluebird enters the Gubong mine
Bluebird Merchant Ventures (EPIC: BMV), the Asian focused
resource development group, is pleased to report that, over the
past week, mine engineers have entered the Gubong 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
.
Highlights
-- 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
The first adit (named adit 4) was explored for a total distance
of 250 metres in all directions. The area is possibly some of the
first workings ever created on the mine. The tunnels are
approximately 1.5-1.7 metres high and 1.5 m wide, which was typical
of near surface development when hand-held mining was the norm. The
team noted a number of unmined narrow veins and took some initial
samples for analysis.
Having established that the mine is reasonably accessible, the
company has arranged for mine geologists to start work this week on
the mapping and sampling phase of the project during which the
company will start determining the potential resource available for
mining in terms of tonnage and grade. From the team's initial
inspection, the opinion remains positive for the reopening of the
mine. The Company can also now begin to gather metallurgical
samples to assess the optimum process using today's technology.
Having completed the inspection of the adit, the team moved to
the Main Shaft which is a 60-degree decline shaft that was located
the week before. This shaft is approximately 2 metres high by 4
metres wide and is fully concrete lined and in exceptionally good
condition. The old infrastructure at the top of the shaft had been
previously reclaimed so our team initially entered the barrel by
abseiling about 50 metres down the shaft. Lower down, the team
found that the rails were still installed. It is likely that a
double drum winder was probably the type of hoist used when the
shaft was operational. This shaft is believed to have been a later
installation on the mine and was used as the main shaft to deliver
ore directly to the adjacent plant crushers which were situated on
surface. It appears from the plans that it is approximately 100
metres in length. The 50 metres that has been inspected is
potentially a valuable asset worth about USD 500,000 in today's
terms as developing new shafts costs approximately USD 10,000 per
metre. The team have also started to excavate another shallow
decline which does not appear to be on the old plans of the
underground workings.
Re-opening an old mine has many advantages to an exploration
project. Firstly, very few exploration projects ever become mines
and require many millions of dollars of investment into the
exploration process. When re-opening an old mine like Gubong there
is no exploration stage which represents a huge cost saving.
Another advantage is that an old mine will have existing
infrastructure. The Gubong mine has over 120 kilometres of
underground tunnels as well as at least three shafts and has an
established tailings area. The cost to develop new tunnels in
today's terms is approximately USD 3,000 per metre.
Colin Patterson, CEO, commented:
"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."
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR")
Enquiries:
Bluebird Merchant Ventures
Ltd +44 (0)7797 859986
Jonathan Morley-Kirk,
Non-Executive Chairman
SP Angel Corporate Finance
LLP
Ewan Leggat
Smaller Company Capital
Ltd
Rupert Williams/Jeremy + 44 (0)203 470 0470
Woodgate +44 (0)203 651 2910
Walbrook PR Limited +44 (0)207 933 8783
Gary Middleton / Nick
Rome
This information is provided by RNS
The company news service from the London Stock Exchange
END
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