Bluebird Merchant Ventures Limited High Grade Gold Grab Samples at Gubong (2759B)

TIDMBMV

RNS Number : 2759B

Bluebird Merchant Ventures Limited

09 January 2018

9 January 2018

Bluebird Merchant Ventures Ltd

(the "Company" or "Bluebird")

High Grade Gold Grab Samples at Gubong

Bluebird Merchant Ventures (EPIC: BMV), the Asian focused resource development group is pleased to announce the results of preliminary 'grab samples' from the Gubong gold mine.

Highlights

-- Encouraging assay results indicating that a significant amount of gold remains unmined at Gubong

-- 10 of 15 samples returned gold grades of over 1 g/t with 3 returning grades of 10 g/t and over

   --    12 of the 15 samples returned silver grades of 10 g/t and over 
   --    The grades indicate ore body structure 

The samples were taken after engineers gained entry into the old workings at Adit 4 and from spillage in Decline Shaft Number 2. All the samples were taken from fines or broken ore lying on the ground. The results, as tabulated below, represent the fact that the old workings have significant amounts of gold which were left in the form of broken ore that was never taken to the process plant.

Of upmost significance are the spillage samples taken in the shaft (KRA200011 - KRA200015). They imply that the ballast under the tracks of each level used to transport ore for several years is likely to carry gold - yet another source of early cheap production. The Gubong mine could potentially have 30 to 40 kilometres of railed tunnels that was used to transport gold.

The Gubong mine is an orogenic deposit. Orogenic ore bodies typically have a depth of 2 kilometres. The Gubong mine currently has a depth of 500 metres. Historical drill results that were previously announced on 3 October 2017 indicate that the structure continues below the 500 metre level so the mine has significant upside potential.

 
   Sample     Location       Date       Sample    Gold (g/t)   Silver 
   Number                                 Type                  (g/t) 
-----------  ----------  ------------  --------  -----------  ------- 
 KRA200006     Adit 4     18-10-2017     GRAB        1.00      17.00 
-----------  ----------  ------------  --------  -----------  ------- 
 KRA200007     Adit 4     18-10-2017     GRAB       21.00      17.00 
-----------  ----------  ------------  --------  -----------  ------- 
 KRA200008     Adit 4     18-10-2017     GRAB        7.00      10.00 
-----------  ----------  ------------  --------  -----------  ------- 
 KRA200009     Adit 4     18-10-2017     GRAB        7.00      10.00 
-----------  ----------  ------------  --------  -----------  ------- 
 KRA200010     Adit 4     18-10-2017     GRAB        1.3       40.00 
-----------  ----------  ------------  --------  -----------  ------- 
               Decline 
 KRA200011        2       18-10-2017     GRAB        6.7       20.00 
-----------  ----------  ------------  --------  -----------  ------- 
               Decline 
 KRA200012        2       18-10-2017     GRAB        13.3      17.00 
-----------  ----------  ------------  --------  -----------  ------- 
               Decline 
 KRA200013        2       18-10-2017     GRAB        10.0      13.00 
-----------  ----------  ------------  --------  -----------  ------- 
               Decline 
 KRA200014        2       18-10-2017     GRAB        3.1        8.00 
-----------  ----------  ------------  --------  -----------  ------- 
               Decline 
 KRA200015        2       18-10-2017     GRAB        1.2       12.00 
-----------  ----------  ------------  --------  -----------  ------- 
 

Charles Barclay, COO, commented:

"The gold price was around USD 40/oz when the mine closed. These results demonstrate that many areas of the mine were undoubtedly left unmined due to what was, at the time, unpayable grades. Furthermore, the potential for processing cheap payable tonnes in a short space of time is good. Our initial goal is to delineate sufficient ore to support the first three years of profitable mining within the upper regions of the mine growing to an annual production of 30,000 oz. Thereafter we will continually scale up annual production as we access the lower regions of the mine."

Colin Patterson, CEO, commented:

"The sheer size of the Gubong gold mine becomes more evident as we make progress. The fact that such good results have been seen from the first few hundred metres of the mine is very encouraging. The mine has over 120 kilometres of underground tunnels and was South Korea's second largest gold mine. I am confident that the Gubong project will deliver significant value to shareholders."

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                           [phone] 
 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                       [phone] 
 
 Blytheweigh                    [phone] 
 Tim Blythe / Camilla 
  Horsfall 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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January 09, 2018 02:00 ET (07:00 GMT)