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Bluebird Merchant Awarded Drilling Grant For Kochang Gold Mine.

LONDON (Alliance News) - Korea-focused gold developer Bluebird Merchant Ventures Ltd said Thursday it has been granted official confirmation of the drilling grant from state-owned energy firm Korea Resources Corp.

The confirmation was sent on Wednesday last week, and the grant is for Bluebird's drilling programme for the Kochang Mine. The grant will allow for drilling to start by July 1 and be completed by the end of September.

The initial subsidy will help to fund three underground holes which will be a total of 280 metres. Depending on the level of success and funds from Kores, the grant has potential to be extended.

The three holes are expected to intersect two of three identified vein structures at Kochang to a depth of 150 metres below the surface. The primary objective of the drilling is to pinpoint the positioning of the veins.

Once drilling is complete, the company will update its model and start on a program to develop a mineral resource estimate for the mine. Further drilling will be carried out to fill in whatever gaps are remaining.

In addition, Bluebird said it has identified another six old adits entering the mine, 100 metres to the northeast of the current entrance. The existence of additional adits points towards a possible increase in the general size of the deposit.

Adits are horizontal passages leading into a mine for access of water drainage purposes.

"We are delighted to have received official confirmation of the drilling grant from KORES. This demonstrates the level of confidence the South Korean authorities have in the prospectivity of the Kochang Mine and Bluebird as a company. We also find it significant that this assistance is being provided to Bluebird, a foreign company," said Chief Executive Colin Patterson.

"The funds will subsidise the drilling of three holes and enable the completion of drilling by September 30, 2019. This is hugely exciting for Bluebird and its shareholders, especially as our work continues to yield evidence of prospectivity, such as the location of two previously mined adits," Patterson added.

Shares in Bluebird Merchant Ventures were up 2.3% at 2.20 pence on Thursday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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Publication:Alliance Newswire
Date:May 9, 2019
Words:368
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