Bluebird Merchant Ventures Ltd (LON:BMV), the resource development group, has completed the report on the feasibility of reopening the Gubong mine in South Korea.
The report has been delivered it to Bluebird’s partner, Southern Gold, and means the 50/50 joint venture can now kick-off, with Southern Gold henceforth sharing equally with Bluebird the costs of the mine’s development.
WATCH: Bluebird Merchant Ventures moving forward with development of Gubong mine
Following the progress at the project to date, it appears that Gubong will be the first mine in Bluebird's portfolio to produce gold next year, the company said.
"We continue to expect that first gold will be produced at Gubong in the fourth quarter of next year and that output can be increased to 100,000oz per annum within five years," said Colin Patterson, the chief executive officer of Bluebird.
"The great news for shareholders is that the cost of reopening old mines is just a fraction of that of a new mine. Our projects have substantial existing development and we have already identified some of the initial low-cost resource available to be processed into gold. Gubong has all the makings of becoming a 'company maker' and we look forward to advancing the project towards our production goals," he added.