Bluebird Merchant Ventures Ltd (LON:BMV) saw its shares rise on Wednesday as the firm said it expects production from its Gubong and Kochang gold mines in South Korea to start by the end of this year.
The intention is to re-open both the old mines simultaneously and use one processing plant to save on costs.
READ: Bluebird Merchant happy with initial metallurgy results at Kochang in Korea
A permit application for Gubong has already been submitted while a feasibility report on Kochang will be completed and submitted to joint venture partner Southern Gold this week.
Once the tenements for Kochang are transferred to the joint venture, an application for the permit to develop will be made.
Both mines were closed in the seventies when the price of gold slumped but prior to that, had been consistent producers for many years.
The design of the plant and the placing of the facility is expected to be determined by the end of June and be debt funded.
Colin Patterson, Bluebird’s chief executive, said: We expect to have received the 'permits to develop' by the end of Q1, which will allow us to carry out all mining operations at both mines.
“Being able to move both projects forward simultaneously is beneficial as it has opened up the possibility of using a single processing facility, reducing the cost of labour, security and capital expenditure."
In early afternoon trading, shares in Bluebird Merchant Ventures were 5% higher at 2.10p.
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