Bluebird
Mining Ventures Ltd / EPIC: BMV.L / Market: FTSE / Sector:
Mining
30 September 2024
Bluebird Mining Ventures
Ltd
('Bluebird' or 'the
Company')
Half Yearly Report to 30 June
2024
Bluebird Mining Ventures Ltd, a gold
project development company, is pleased to announce its Interim
Results for the six-month period ended 30 June 2024.
The Company's Interim Results will
be available on its website https://bluebirdmv.com
or downloadable on the following
link: http://www.rns-pdf.londonstockexchange.com/rns/1953G_1-2024-9-30.pdf
CHAIRMAN'S STATEMENT
The highlight of the first six
months of the year was the successful farm out of the high grade
Gubong Gold Mine ('Gubong' or 'the Project') in South Korea. The
staged US$5 million investment, by a consortium of South Korean
businessman with whom we have been working with for some time,
provided Bluebird with a free carry to first production in return
for up to 60% of the Project, previously the country's second
largest gold mine.
In addition to a significant capital
injection, which is non-dilutive at the top co level, the agreement
highlights the belief by both parties that the c.1.3Moz Au Gubong
Mine can be brought into production. As the gold price indicates,
there is increased appetite for investment in bullion, with
significant buying coming from Asia. There is also regional
recognition that exposure to gold can be garnered through the
participation directly in mining projects, which can only be good
news for companies such as Bluebird and the sector. With the
gold pricing environment positive and many forecasts pointing to
increases, some beyond US$ 3,500 per oz, we envisage further
interest in our activities.
With our documented issues with
permitting on-going, the Board recognised that the optimal
structure to advance its projects was via Joint Ventures with local
partners, who can provide an increased understanding of operating
in-country as well as corporate and planning expertise at local,
district and governmental levels. This model was successfully
implemented in the Philippines last year at the Batangas Gold
Project where a c.US$2 million investment commitment was signed.
As a result, the work required for the submission for the
grant of a Declaration of Mining Project Feasibility for an
operating gold mine at the Lobo high-grade gold mining target has
commenced, as has the work programme for Environmental Impact
Study. This forms the core of the environmental baseline studies
needed to be conducted in line with the requirements for the
issuance of an Environmental Compliance Certificate.
Post the period end, we also signed
a JV agreement to develop the Kochang Gold and Silver Mine in South
Korea. The Board believes that at Kochang, initial modular
production can be started between 6 to 9 months following the
receival of the relevant permitting, with the initial plan being to
process via a toll treatment agreement. We await the outcome
of the Board of Audit and Inspection process, which despite being
informed that this was a relatively short process, it is
frustratingly still on-going.
The US$2
million staged investment with the same consortium of local
businessman which invested in Gubong means that all three of our
projects are now under JV. In essence, the Company has c.US$9
million committed to develop its projects, which have an estimated
cumulative 1.8Moz Au and is on a free carry structure, greatly
reducing its reliance on the capital markets.
To reflect this funded business
model, the Board has also been restructured. Executive Director
Charles Barclay and Non-executive Director Clive Sinclair-Poulton
stepped down, and Colin Patterson moved to Non-executive Director.
Aidan Bishop, who was instrumental in signing the JVs with the
Company's South Korean and Filipino partners, is interim CEO and I
remain as Non-executive Chairman.
To fund the business going forward,
we have entered into a binding term sheet to provide a loan
facility of up to £350,000 with Catalyse Capital Ltd, a long
running and supportive shareholder of Bluebird, as well as
nominated co investees. The loan structure allows for
us to receive capital without having to utilise the equity capital
markets, where we believe a potential funding would be at a
significant discount to the current price and therefore
unnecessarily dilutive. Concurrently the Company is also
conducting an equity raise ("the Placing"), at a price of 1p per
share through a book building exercise that will conclude on 4
October 2024. The Placing has an attached one-for-one warrant with
an exercise price of 1.25p per share and a 12 month life. Any
net cash sums raised in the Placing will be netted on a pro rata
basis against the loan capital to be drawn, reducing the total loan
commitment. For full details please see the Financing
announcement also released today.
Looking ahead, Bluebird's strategy
remains focused on developing its multi-project precious metal
portfolio, with the goal of becoming a producer achieving a
cumulative annual production target of over 100,000 ounces of gold.
To this end, we continue to regularly engage with our local
partners to ascertain the optimal paths for development of all
three projects. We believe that with our current structure we
have a significantly increased chance of navigating the planning
and development processes. Our technical team has been on the
ground in South Korea, increasing our understanding of the
opportunities at both Kochang and Gubong, and we hope to publish
further updates on the projects in Q4 2024.
Finally, I would like to thank
everyone involved with the Company, including our partners, for
their dedication and hard work, as well as our shareholders for
their continued support. Together, we aim to deliver value for all
stakeholders.
**ENDS**
For
further information please visit https://bluebirdmv.com or
contact:
Jonathan
Morley-Kirk Bluebird Mining Ventures Ltd
Email: jmk@bluebirdmv.com
Nick Emerson
SI Capital
Tel:
01483413500
About Bluebird
London listed Bluebird Mining
Ventures Ltd is focused on developing high grade, low capex gold
projects. With a cumulative estimated 1.8M oz Au across three
projects, including two historic mines in South Korea and a
development project in the Philippines, the Company looks to JV its
assets with local partners to provide free carry structures to
advance its assets to production.
Bluebird recognised the most
effective strategy to develop projects in South Korea and the
Philippines involved adopting a Joint Venture model; by securing
local partners with in-country operational knowledge and investment
capital at the project level, assets can be advanced to production
on a de-risked basis.
The Company has three JV's providing
a cumulative c.US$9m investment: US$5m for the development of the
historic Gubong Gold Mine and US$2m for the Kochang Gold and Silver
Mine, in South Korea and c.US$2m (funding to a production decision)
for the Batangas Gold Project in the Philippines. With committed
development capital at the project level, the Company has free
carries to production/mine construction on all its projects, which
reduces its reliance on the international capital
markets.
Bluebird continues to provide
technical assistance to these projects, utilising its
internationally experienced mining team, which has a track record
of bringing gold projects into production across Southeast
Asia. Both JV parties recognise each sides competencies and
the mutual belief that together they can bring the projects into
production and generate significant value for all stakeholders.
Importantly the management team has personally invested cUS$2
million into the Company, highlighting their belief in the quality
of the portfolio.
Gubong, which was historically the
second largest gold mine in South Korea has 9 granted tenements
covering c.25 sq km. Gubong is moderately dipping with 9
veins extending 500m below surface and known to extend at least a
further 250m. However, the production opportunity for Bluebird
prior to looking at deepening the mine is the 25 levels already
developed with all the remnants and unmined areas left by the
original miners. The 25 levels extend over 120km in total
length which indicates the size of the opportunity. The Korea
Resources Corporation ('KORES') estimated 2.34M tonnes at some
7.3g/t Au garnered from 57 drill holes over 17,715.3 metres.
With additional sampling, mapping, pit modelling and grade
analysis, plus the fact that Gubong is an orogenic deposit, which
typically have a depth of 2km compared to the current depth of
500m, the Board believe it has a geological potential of 1 million
+ oz Au in-situ, plus an estimated additional 300,000 oz Au from
satellite ore bodies.
Kochang is an epithermal vein
deposit with parallel vertical ore bodies covering 8.3 sq km that
reportedly produced 110,000 oz of gold and 5.9 million oz of silver
between 1961 and 1975. Consisting of a gold and silver mine,
there are currently four main veins and several parallel subsidiary
veins vein which have been identified, as well as a newly
identified cross-cutting vein. Historic drilling indicates the
veins continue to depth below the current 150m mine and mapping
shows the veins on surface providing potential above and below the
old workings. The veins extend to the NE providing a strike length
of 2.5km with 600m between the two mines not exploited. There
is potential to expand operations to the southwest/northeast and to
depth, as well as exploit the already mined areas. The total
resource potential is between 550,000 and 700,000 tonnes, with a
range of grades between 5.2 g/t to 6.6 g/t gold, and 27.3 g/t to
34.8 g/t silver. Following the granting of a Mountain Use
permit, there is an estimated 6-to-9-month development time to
trial mining.
Batangas is a 1,160-hectare licence
with a 25-year Mineral Production Sharing Agreement ('MPSA')
granted. The Project has a current JORC compliant resource of
440,000 ounces, including a maiden ore reserve of 128,000 ounces
(including silver credits) as well as multiple additional targets
providing extensive resource upside. Exploration expenditure to the
tune of c.$20m has already been invested.
Work is focused on completing
Exploration and Environmental Work Programmes initially targeting
the high-grade 1,164-hectares Lobo licence. This has an
initial Probable JORC Compliant Ore Reserves of 171,000 tons at 6.6
g/t for 36,000 ounces of gold excluding silver credits based
primarily on the South West Breccia ('SWB') area of the licence
that can be mined in the first 18 months of any operation.
There is an Indicated resource of 82,000 oz Au that is perceived as
easily convertible. Additionally, the area has multiple
epithermal and high-grade targets already identified for resource
expansion with 15km of identified mineralised structures with
results across the nine identified targets yielding excellent
results. These include 2.1m @14.4g/t Au and 3m at 12.1g/t at
West Drift, which already has an Indicated and Inferred resource of
350,000t at 3 g/t Au, 8.35m at 18.3 g/t Au and 6.0m at 31.2 g/t Au
located immediately west of the SWB Extension, 19m surface channel
sample with intersections of 19m grading 9.8 g/t Au at Ulupong and
trenching at Limestone Target yielded 3.5m at 25.9 g/t Au including
1.5m at 56.8 g/t Au.
