Bluebird Merchant Ventures Limited Kochang Underground Grab Sample Results (0256O)
May 15 2018 - 1:00AM
UK Regulatory
TIDMBMV
RNS Number : 0256O
Bluebird Merchant Ventures Limited
15 May 2018
15 May 2018
Bluebird Merchant Ventures Ltd
(the "Company" or "Bluebird")
Kochang Underground Grab Sample Results
Bluebird Merchant Ventures (EPIC: BMV), the Asian focused
resource development group is pleased to announce encouraging
results of its underground grab sampling at Kochang and the
sortability of the ore.
Highlights:
-- Early production feedstock has been identified
-- Initial Program indicates substantial improvement of the
grade through sorting - 1.69 g/t to 5.12 g/t Au
-- Potential operating profit of USD 750/oz from broken rock
Bluebird examines a number of potential products when
determining the viability of reopening a mine. One of those
products is 'broken rock' (blasted rock that has not been taken out
of the mine). The methodology employed in evaluating the rock is
called 'grab sampling'. One reason that broken rock is left behind
is due to it being deemed uneconomic at the time. The Kochang mine
closed in 1975 when the gold price was USD140/oz. Much of the ore
that was left behind that was once uneconomic would now be
considered economically viable. The current gold price is currently
over USD 1,300/oz.
The complete sampling program was undertaken over 1,300 metres
on the two main levels. The Kochang mine has three levels and two
have been accessed thus far. Each level has three veins which were
historically mined. Where broken rock was found, systematic
sampling was undertaken at equal distances by taking a 3-5kg bag of
the rock, at each position, for assay. There was no selectivity
involved.
After these samples were analysed nine of the sample positions
were resampled with the instruction to the samplers to selectively
'pick' ore. The results can be found in the second column of Table
2.
As can be seen in Table 2 below, the picked ore was at an
average grade of 5.12 g/t Au compared to the original 1.69 g/t Au.
This indicates that substantial beneficiation of the grade can be
gained through sorting. Whilst this simple test was done by hand
sorting, there are many sorting technologies available for this
type of work and they can be set up to sort ore using a number of
parameters.
Broken rock is cheap because the costly work of drilling and
blasting has already been carried out. The only task left is to
take it to a process plant. By utilising sorting techniques, the
cost of recovering this gold source can be substantially reduced.
This broken rock is likely to be the initial production
feedstock.
The Company expects to update the market next week with further
results from the underground sampling program of the veins at
Kochang.
Charles Barclay, COO, commented:
"We are delighted with results from this initial programme at
Kochang and the grades that we have seen.
"Although the engineers and geologists are yet to accurately
determine the tonnes of broken rock/ore that is remaining it is
worth noting that for every 1,000 tonnes of sorted rock delivered
for metallurgical treatment at a conservative grade of say 4g/t Au,
recovery of 85% and total operating cost of approximately $60/t,
the Company could expect to make an operating profit of around USD
750 per ounce of gold recovered at a gold price of $1300/oz.
"The current economic climate for gold mining, combined with our
higher than expected grades, provides us with great confidence as
we progress further with our underground sampling programme. We
look forward to providing further updates in due course."
The table below shows the significant results (>1.0 g/t) of
that sampling.
Table 1 - Grab Sampling with no selectivity
Sample Underground Au Grade Ag Grade
Number Drive (g/t) (g/t)
KRS350016 245 Lvl 1.03 8
------------- --------- ---------
KRS350022 245 Lvl 2.12 24
------------- --------- ---------
KRS350023 245 Lvl 2.34 13
------------- --------- ---------
KRS350024 245 Lvl 1.51 5
------------- --------- ---------
KRS350025 245 Lvl 3.15 11
------------- --------- ---------
KRS350026 245 Lvl 5.86 20
------------- --------- ---------
KRS350033 245 Lvl 1.4 4
------------- --------- ---------
KRS350034 245 Lvl 1.26 4
------------- --------- ---------
KRS350035 245 Lvl 1.19 5
------------- --------- ---------
KRS350041 245 Lvl 3.11 27
------------- --------- ---------
KRS350042 245 Lvl 3.74 32
------------- --------- ---------
KRS350044 245 Lvl 1.51 11
------------- --------- ---------
KRS350046 245 Lvl 5.87 32
------------- --------- ---------
KRS350047 245 Lvl 4.06 56
------------- --------- ---------
KRS350048 245 Lvl 2.46 27
------------- --------- ---------
KRS350049 245 Lvl 17.4 165
------------- --------- ---------
KRS350064 245 Lvl 1.52 5
------------- --------- ---------
KRS350065 245 Lvl 2.3 7
------------- --------- ---------
KRS350066 245 Lvl 4.38 7
------------- --------- ---------
KRS350068 245 Lvl 2.94 10
------------- --------- ---------
KRS350069 245 Lvl 2.1 11
------------- --------- ---------
KRS350073 245 Lvl 1.56 22
------------- --------- ---------
KRS350078 260 SubLvl 1.09 13
------------- --------- ---------
KRS350080 260 SubLvl 1.03 9
------------- --------- ---------
KRS350083 265 Lvl 2.27 22
------------- --------- ---------
KRS350084 265 Lvl 1.34 8
------------- --------- ---------
KRS350085 265 Lvl 1.81 15
------------- --------- ---------
KRS350087 265 Lvl 2.31 18
------------- --------- ---------
KRS350088 265 Lvl 3.51 15
------------- --------- ---------
KRS350089 265 Lvl 3.67 18
------------- --------- ---------
KRS350090 265 Lvl 2.27 18
------------- --------- ---------
KRS350092 265 Lvl 1.02 3
------------- --------- ---------
KRS350093 265 Lvl 2.73 14
------------- --------- ---------
KRS350094 265 Lvl 1.84 9
------------- --------- ---------
KRS350095 265 Lvl 3.25 18
------------- --------- ---------
KRS350096 265 Lvl 2.8 16
------------- --------- ---------
KRS350097 265 Lvl 2.78 18
------------- --------- ---------
KRS350098 265 Lvl 2.12 15
------------- --------- ---------
Average: 2.86 19.34
--------- ---------
Samples: 38 38
--------- ---------
.
Table 2 - Grab Samples with selectivity
Sorted Grab Au Grade Previous Grab Au Grade Au Increase
Sample Number (g/t) Sample Number (g/t) / Decrease
KRS350101 2.82 KRS350024 0.87 1.95
-------- -------------- -------- -----------
KRS350103 0.71 KRS350084 2.78 -2.07
-------- -------------- -------- -----------
KRS350104 3.3 KRS350096 2.8 0.5
-------- -------------- -------- -----------
KRS350105 2.17 KRS350097 2.78 -0.61
-------- -------------- -------- -----------
KRS350106 13.5 KRS350037 0.49 13.01
-------- -------------- -------- -----------
KRS350107 8.75 KRS350039 0.07 8.68
-------- -------------- -------- -----------
KRS350108 3.94 KRS350058 0.1 3.84
-------- -------------- -------- -----------
KRS350109 0.39 KRS350065 2.3 -1.91
-------- -------------- -------- -----------
KRS350110 10.5 KRS350068 2.98 7.52
-------- -------------- -------- -----------
Average Grade 5.12 1.69 3.43
-------- -------------- -------- -----------
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
/ Nick Elwes
www.bluebirdmv.com
@BluebirdIR
This information is provided by RNS
The company news service from the London Stock Exchange
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