TIDMBMV

RNS Number : 2360W

Bluebird Merchant Ventures Limited

31 July 2018

31 July 2018

Bluebird Merchant Ventures Ltd

(the "Company" or "Bluebird")

Report On The Feasibility Of Reopening The Gubong Mine Is Completed

Bluebird Merchant Ventures (EPIC: BMV), the Asian focused resource development group is pleased to announce that it has completed the report on the feasibility of reopening the Gubong mine, and delivered it to its partner, Southern Gold.

Highlights:

   --      Report on the feasibility of reopening the Gubong mine has been completed 
   --      The pre-construction phase has commenced 
   --      Production timetable on schedule, targeting first gold pour in the fourth quarter of 2019

This feasibility report is the final deliverable needed for the formation of the 50:50 joint venture with Southern Gold. Ongoing costs will now be shared equally between the two partners, with Bluebird as the operator of the joint venture. The work carried out by the Company over the past 12 months supports its previously stated view that the establishment of a low capital cost mine at Gubong is achievable. To reduce risk and improve accuracy, further verification work will be undertaken prior to making a decision to start construction.

The pre-construction work programme at Gubong encompasses further exposure of the underground workings to allow for additional sampling and subsequent metallurgical test work. This will increase the initial mine inventory and reduce risk.

Following the progress at the project to date, it appears that Gubong will be the first mine, in the Company's portfolio, to produce gold next year.

Colin Patterson, CEO, commented:

"We are delighted that such progress has been made towards the commencement of our joint venure partnership with Southern Gold for the Gubong mine. They are proven partners who will share both their expertise and the projects' ongoing costs. We look forward to a productive working relationship.

"The report on the feasibility of reopening the Gubong mine has further bolstered our expectations for the project. 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."

"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."

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR")

Enquiries:

 
 Bluebird Merchant Ventures Ltd         +44 (0) 7797 859986 
 Jonathan Morley-Kirk, Non-Executive 
  Chairman 
  SP Angel Corporate Finance LLP 
   Ewan Leggat 
   Smaller Company Capital Ltd           + 44 (0) 20 3470 0470 
   Rupert Williams/Jeremy Woodgate        +44 (0) 20 3651 2910 
 
 Blytheweigh                            +44 (0) 20 7138 3204 
 Tim Blythe / Julia Tilley / 
  Simon Woods

www.bluebirdmv.com

@BluebirdIR

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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July 31, 2018 02:01 ET (06:01 GMT)

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