Asia-focused resource development group Bluebird Merchant Ventures on Tuesday signed a formal 50/50 joint venture (JV) agreement with ASX-listed Southern Gold for the Kochang gold and silver project, in South Korea.
Bluebird is currently looking to reopen the mine, which shut down in 1975, and has gained access to the lowest level of the old mine, which was about 150 m below the surface.
A feasibility report for Kochang is expected to be complete in September, with Bluebird as the JV operator.
The partners’ target is to have Kochang become a 100 000 oz/y gold producer within five years, with the first gold expected in the fourth quarter of 2019.
Bluebird started the required farm-in activities of the Kochang JV agreement with Southern Gold in February. Bluebird is required to spend $500 000 towards the feasibility study to reopen the gold and silver mine, as well as to complete a placing of A$250 000 in Southern Gold.
After the feasibility study is complete, the companies will each incur 50% of the costs.