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Bluebird MV announces Kochang underground grab sample results

Mining News - Published on Tue, 22 May 2018

Image Source: bluebirdmv.com
Bluebird Merchant Ventures, the Asian focused resource development group announced that encouraging results of its underground grab sampling at Kochang and the sortability of the ore.

Highlights:

1. Early production feedstock has been identified
2. Initial Program indicates substantial improvement of the grade through sorting – 1.69 g/t to 5.12 g/t Au
3. Potential operating profit of USD 750/oz from broken rock

Bluebird examines a number of potential products when determining the viability of reopening a mine. One of those products is ‘broken rock’. The methodology employed in evaluating the rock is called ‘grab sampling’. One reason that broken rock is left behind is due to it being deemed uneconomic at the time. The Kochang mine closed in 1975 when the gold price was USD140/oz. Much of the ore that was left behind that was once uneconomic would now be considered economically viable. The current gold price is currently over USD 1,300/oz.

The complete sampling program was undertaken over 1,300 metres on the two main levels. The Kochang mine has three levels and two have been accessed thus far. Each level has three veins which were historically mined. Where broken rock was found, systematic sampling was undertaken at equal distances by taking a 3-5kg bag of the rock, at each position, for assay. There was no selectivity involved.

Mr Charles Barclay, COO, commented that “We are delighted with results from this initial programme at Kochang and the grades that we have seen. Mr Barclay said that “Although the engineers and geologists are yet to accurately determine the tonnes of broken rock/ore that is remaining it is worth noting that for every 1,000 tonnes of sorted rock delivered for metallurgical treatment at a conservative grade of say 4g/t Au, recovery of 85% and total operating cost of approximately USD 60/t, the Company could expect to make an operating profit of around USD 750 per ounce of gold recovered at a gold price of USD 1300/oz.

Mr Barclay said that “The current economic climate for gold mining, combined with our higher than expected grades, provides us with great confidence as we progress further with our underground sampling programme. We look forward to providing further updates in due course.”

Source :

Posted By : Rabi Wangkhem on Tue, 22 May 2018
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