Bluebird Merchant Ventures Ltd. executed a formal 50/50 joint venture agreement with Southern Gold Ltd. for the Kochang gold-silver mine in South Korea and started farm-in activities.
The company said June 13 that it is close to completing the requirement to spend US$500,000 for a feasibility study to reopen the mine and to complete a A$250,000 placing in Southern Gold.
The feasibility report on Kochang is scheduled to be completed in September, following which the companies will bear the project costs on an equal basis. Meanwhile, a feasibility report to reopen the Gubong mine will be completed on schedule in July.
"Bluebird is targeting to become a 100,000 ounce per year gold producer within five years from commencing operations," CEO Colin Patterson said. The company expects to pour first gold in the fourth quarter of 2019.
Patterson previously said the company is targeting a net profit of US$100/tonne of gold from a project to reopen shuttered South Korean gold mines.