Bluebird Merchant Ventures Limited Initial Metallurgical Results from Kochang (4528J)
05 December 2018 - 6:00PM
UK Regulatory
TIDMBMV
RNS Number : 4528J
Bluebird Merchant Ventures Limited
05 December 2018
5 December 2018
Bluebird Merchant Ventures Ltd
("Bluebird" or the "Company")
Excellent Results Indicated from Initial Metallurgical Test Work
on Kochang Samples
Bluebird Merchant Ventures (EPIC: BMV), the Asian focused
resource development group, is pleased to announce excellent
results relating to initial metallurgical test work conducted on a
composite ore sample from Kochang Mine.
Highlights:
-- The average grade of the composite sample is almost 5 g/t
gold and 19 g/t silver, confirming the results obtained from the
underground programme
-- A simple gravity circuit yields gold recoveries of up to 80%
with silver recoveries of around 60%
-- Additional test work is in progress
-- Potential for a low-cost process is excellent
Metallurgical test work is a critical factor in determining the
viability and economics of any mining project as well for the
optimisation of ongoing operations. An ore deposit even of high
grade may be compromised should the metal or mineral prove
difficult or costly to extract.
Metallurgical test work has been conducted at the Mines and
Geoscience Bureau (MGB) and Intertek in Manila, Philippines to
determine the most appropriate method of gold and silver recovery
from the Kochang ore. The work has been conducted under the
direction and guidance of Bluebird's Metallurgical Manager, Peter
Wallwin, who has over 40 years of experience of project
development.
Samples of Kochang ore were evaluated for inclusion into a
composite sample to be used for the initial metallurgical test work
programme. Of the 425 samples received, 230 (54%) contained higher
than 1 g/t gold. The test work sample value validated the sampling
results obtained from the underground programme carried out earlier
in the year.
Test work using a simple gravity separation system has yielded
gold recoveries of around 80% and silver recoveries of around 60%.
It is important to note that, whilst a recovery figure of 80% may
appear low, the yield is from a much shorter and cheaper process
and can be significantly increased should we decide to enhance the
metallurgical process with additional standard recovery methods.
Further test work is ongoing.
These excellent results from the samples evaluated to date
indicate that the ore is not problematic and does not require
complicated or expensive extraction techniques and will allow the
company to consider low cost options for the design and
construction of its process plant.
The programme continues with the focus turning to a leaching
process. Once test work is complete, an options analysis will be
conducted for incorporation into a report to compare the operating
and capital costs, as well as the economics for any given
option.
Additional samples will be collected at a later date from other
areas of the mine to verify the results obtained from those
conducted on the samples to date.
Colin Patterson, CEO, commented:
"Metallurgical test work is critical to ensuring the
profitability of a mining operation. The initial test work has
demonstrated higher than the industry standard in terms of
recovered gold for this simple and inexpensive gravity process.
This will certainly improve the economics of production following
the reopening of the Kochang mine. As I have consistently said, the
economics of reopening an old mine are far less costly than that of
new development."
"Kochang continues to 'tick the boxes' in terms of being a mine
worth reopening. The completion and evaluation of this test work
will enable us to confirm the future of this exciting project."
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 + 44 (0) 20 3470 0470
Rupert Williams/Jeremy Woodgate +44 (0) 20 3651 2910
Blytheweigh +44 (0) 20 7138 3204
Tim Blythe / Camilla Horsfall
/ Julia Tilley
www.bluebirdmv.com
@BluebirdIR
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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