VANCOUVER, BC, May 4, 2021 /CNW/ - Bluestone Resources
Inc. (TSXV: BSR) (OTCQB: BBSRF) ("Bluestone" or the
"Company") is pleased to report additional drill assays from
the infill drill program completed in the South Zone of the
Cerro Blanco gold project in late
2020. Results from three underground holes and thirteen surface
holes are reported in this press release, totalling 4,493
meters.
Highlights include the following drilled intercepts:
- 28.6 meters grading 11.6 g/t Au and 11.7 g/t Ag (CB20-442)
- 217.6 meters grading 1.4 g/t Au and 5.6 g/t Ag (CB20-433)
- 111.8 meters grading 2.1 g/t Au and 12.5 g/t Ag (CB20-444)
- 114.9 meters grading 2.5 g/t Au and 13.4 g/t Ag (CB20-449)
- 101.4 meters grading 2.4 g/t Au and 9.7 g/t Ag (UGCB20-191)
- 21.2 meters grading 11.2 g/t Au and 11.7 g/t Ag (CB20-443)
The holes reported include significant widths of near surface
mineralization within the Salinas
unit, and underlying Mita sediments and tuffs, which host the
majority of the high-grade epithermal vein swarms. Drilling is
currently focused on mineralization within the upper portion of the
deposit to improve drill density and better define limits of the
mineralization.
Jack Lundin, President and CEO,
commented, "As anticipated, the South Zone continues to yield
+100-meter intervals at over 2 g/t gold near surface. Combined with
the impressive widths of high-grade vein mineralization deeper in
the deposit, these unique attributes to Cerro Blanco create an asset capable of
producing over 300,000 oz Au per year. The drill results will be
incorporated into an updated resource estimate that will form the
basis of our ongoing Feasibility Study which is progressing on
schedule."
Assay results include infill sampling of mineralized wall rocks,
and compliment assay results for individual veins reported
previously for some holes (see news releases dated February 16, 2021 and March 18, 2021). High-grade intervals reported in
holes CB20-442 and CB20-443 (11.6 g/t Au over 28.6 meters and 11.2
g/t Au over 21.2 meters respectively) represent approximate true
widths and incorporate vein VS_01 and associated splay vein VS_21.
Assays for several holes are still being received and compiled,
in addition to holes currently being drilled that are targeting
mineralization in the Salinas
unit.
Drill hole locations, sections, and core photos can be accessed
by clicking HERE.
Table of Drill Intercepts and Assays
HOLE
ID
|
PREVIOUSLY
REPORTED
|
FROM
(m)
|
TO
(m)
|
CORE INTERVAL
(m)
|
Au
g/t
|
Ag
g/t
|
CB20-432
|
*
|
64.0
|
161.9
|
97.9
|
0.9
|
4.6
|
CB20-433
|
*
|
75.6
|
293.2
|
217.6
|
1.4
|
5.6
|
CB20-437
|
*
|
75.3
|
147.0
|
71.7
|
1.4
|
5.0
|
CB20-438
|
*
|
61.2
|
86.6
|
25.4
|
0.9
|
4.7
|
CB20-439
|
|
70.4
|
134.1
|
63.7
|
0.8
|
4.6
|
CB20-440
|
|
210.9
|
212.2
|
1.3
|
6.7
|
1.5
|
|
|
281.8
|
306.6
|
24.9
|
1.5
|
4.3
|
CB20-442
|
*
|
58.2
|
166.7
|
108.5
|
0.9
|
4.9
|
|
|
182.0
|
253.5
|
71.5
|
1.5
|
1.9
|
|
|
263.5
|
292.1
|
28.6
|
11.6
|
12.3
|
CB20-443
|
|
77.7
|
173.3
|
95.6
|
1.0
|
4.8
|
|
|
204.2
|
217.0
|
12.8
|
0.7
|
1.0
|
|
|
293.1
|
314.3
|
21.2
|
11.2
|
11.7
|
CB20-444
|
*
|
54.6
|
166.3
|
111.8
|
2.1
|
12.5
|
CB20-445
|
*
|
0.0
|
12.2
|
12.2
|
0.5
|
2.7
|
|
|
85.0
|
151.5
|
66.5
|
1.2
|
5.2
|
CB20-446
|
|
74.7
|
134.8
|
60.1
|
0.9
|
5.5
|
|
|
190.2
|
199.8
|
9.6
|
0.5
|
0.5
|
|
|
333.8
|
349.4
|
15.6
|
2.0
|
18.9
|
CB20-449
|
*
|
43.3
|
158.2
|
114.9
|
2.5
|
13.4
|
CB20-450
|
|
92.7
|
240.8
|
148.2
|
0.6
|
9.7
|
|
|
308.0
|
314.3
|
6.3
|
8.2
|
16.9
|
UGCB20-189
|
*
|
34.7
|
96.6
|
61.9
|
2.8
|
14.8
|
|
|
122.9
|
154.7
|
31.7
|
0.5
|
2.3
|
UGCB20-190
|
*
|
0.0
|
80.9
|
80.9
|
0.8
|
4.9
|
|
|
122.5
|
145.4
|
22.9
|
0.8
|
5.0
|
|
|
168.4
|
185.0
|
16.6
|
1.1
|
2.0
|
UGCB20-191
|
*
|
24.8
|
126.2
|
101.4
|
2.4
|
9.6
|
Intervals in bold are
cited in the text of the news release. A drill hole location plan
table with hole coordinates and azimuth/ dip information is
attached to this release. * denotes drill hole with high-grade
assay results for individual veins previously reported (see
Bluestone news releases dated February 16, 2021 and March 18,
2021).
|
Quality Analysis and Quality Control
Assay results
listed within this release were performed by Inspectorate
Laboratories ("Inspectorate"), a division of Bureau Veritas, which
are ISO 17025 accredited laboratories. Logging and sampling are
undertaken on site at Cerro Blanco
by Company personnel under a QA/QC protocol developed by Bluestone.
Samples are transported in security-sealed bags to Inspectorate
Labs in Managua, Nicaragua for
sample preparation. Sample pulps are then shipped to
Inspectorate in Hermosillo,
Mexico, and assayed using industry-standard assay techniques
for gold and silver. Gold and silver were analyzed by a 30-gram
charge with atomic absorption and/or gravimetric finish for values
exceeding 5 g/t Au and 100 g/t Ag. Analytical accuracy and
precision are monitored by the analysis of reagent blanks,
reference material, and replicate samples. Quality control is
further assured by Bluestone's QA/QC program, which involves the
insertion of blind certified reference materials (standards) and
field duplicates into the sample stream to independently assess
analytical precision and accuracy of each batch of samples as they
are received from the laboratory. A selection of samples is
submitted to ALS Chemex Laboratories in Vancouver for check analysis and additional
quality control.
Qualified Person
David
Cass, P.Geo., Vice President Exploration, is the designated
Qualified Person for this news release within the meaning of
National Instrument 43-101 and has reviewed and verified that the
scientific and technical information set out above in this news
release is accurate and therefore approves this written disclosure
of the technical information.
About Bluestone Resources
The Cerro Blanco Gold
Project is an advanced stage near surface development project. A
PEA on the project highlighted an asset capable of producing over
300 koz/yr with an average annual production of 231 koz/yr at
all-in sustaining costs of ~$642/oz
(as defined per World Gold Council guidelines, less corporate
general and administration costs) over an initial 11-year mine
life. The Company trades under the symbol "BSR" on the TSX Venture
Exchange and "BBSRF" on the OTCQB.
On Behalf of Bluestone Resources Inc.
"Jack Lundin"
Jack Lundin | President, Chief
Executive Officer & Director
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
Forward Looking Statements
This press release contains
"forward-looking information" within the meaning of Canadian
securities legislation and "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 (collectively, "forward-looking statements"). All
statements, other than statements of historical fact, that address
activities, events, or developments that Bluestone Resources Inc.
("Bluestone" or the "Company") believes, expects, or anticipates
will or may occur in the future including, without limitation: the
estimated value of the Cerro Blanco Project (the "Project"); the
planned open pit development scenario for the Project; the
estimated gold production volume per year from the Project; gold
and silver price estimates used in the preliminary economic
assessment ("PEA"); additional financial estimates of Project
economics resulting from the PEA, including peak and average annual
gold productions amounts, average all-in sustaining costs, average
annual free cash flow, after-tax net present value ("NPV"),
after-tax internal rate of return, initial capital requirements,
life of mine gold and silver production amounts, measured and
indicated resources and NPV assuming a higher gold price estimate;
the Company's plan to advance an EIA application in parallel to
completing a bankable Feasibility Study by the end of 2021; the
Company's target to initiate Project development in the second half
of 2022; anticipated receipt of an EIA permit in the second half of
2022; mineral resource estimates; the estimated tonne-per-day
recovery volume of the planned open pit operation; the planned
conventional process plant and associated processing methods; the
Company's goal to prepare a coordinated Environmental and Social
Impact Assessment document that aligns with the IFC Performance
Standards, Equator Principles as well as national requirements;
engagement with local communities and stakeholders to remain
on-going through the process; the Company's plan to advance the
development of the EIA document in 2021 for submittal prior to the
end of the year; the reasonable prospect of eventual economic
extraction demonstrated by reported mineral resources; gold and
silver price estimates and a reasonable contingency factor used as
the basis for mineral resource estimate cut-off grades; reasonable
expectation that the majority of Inferred Mineral Resources could
be upgraded to Indicated Mineral Resources with continued
exploration; results of mineral resource estimate sensitivity
analysis; uncertainty that the PEA will be realized; the potential
for subsequent assessment of mining, environmental, processing,
permitting, taxation, socio-economic and other factors to affect
mineral resources; estimated diluted mill feed to be processed over
the life of mine from the main pit area; planned trucking of mill
feed to a primary crushed located to the east of the main pit;
amount of waste to be stored in a dump adjacent to the main pit;
estimated open-pit mining dilution; measured and indicated mill
feed amounts; estimated process plant capacity in tonnes per day of
ore; planned processing rate measured in dry tonnes per year and
average feed grade thereof; details of planned processing,
including pre-oxidation, 48-hour leach and carbon-in-pulp
absorption circuit elements and expected gold and silver recovery
percentage to produce a dore; estimated initial capital required to
fund construction and commissioning; beneficial existence of a
significant amount of development already in place, a water
treatment plant, maintenance and warehouse facilities, offices and
communications; capital and operating cost estimates; estimated
all-in cash costs including sustaining capex; planned installation
of a new power transmission line as part of the construction of the
Project; the Project's expected economic benefits to Guatemala. These forward-looking statements
reflect the current expectations or beliefs of the Company based on
information currently available to Bluestone and often use words
such as "expects", "plans", "anticipates", "estimates", "intends",
"may", or variations thereof or the negative of any of these
terms.
All forward-looking statements are made based on Bluestone's
current beliefs as well as various assumptions made by Bluestone
and information currently available to Bluestone. Generally, these
assumptions include, among others: the presence of and continuity
of metals at the Cerro Blanco Project at estimated grades; the
availability of personnel, machinery, and equipment at estimated
prices and within estimated delivery times; currency exchange
rates; metals sales prices and exchange rates assumed; appropriate
discount rates applied to the cash flows in economic analyses; tax
rates and royalty rates applicable to the proposed mining
operations; the availability of acceptable financing; the impact of
the novel coronavirus (COVID-19); anticipated mining losses and
dilution; success in realizing proposed operations; and anticipated
timelines for community consultations and the impact of those
consultations on the regulatory approval process.
Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of Bluestone to
differ materially from those discussed in the forward-looking
statements and, even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, Bluestone.
Factors that could cause actual results or events to differ
materially from current expectations include, among other things:
potential changes to the mining method and the current development
strategy; risks and uncertainties related to expected production
rates; timing and amount of production and total costs of
production; risks and uncertainties related to the ability to
obtain, amend, or maintain necessary licenses, permits, or surface
rights; risks associated with technical difficulties in connection
with mining development activities; risks and uncertainties related
to the accuracy of mineral resource estimates and estimates of
future production, future cash flow, total costs of production, and
diminishing quantities or grades of mineral resources; risks
associated with geopolitical uncertainty and political and economic
instability in Guatemala; risks
related to global epidemics or pandemics and other health crises,
including the impact of the novel coronavirus (COVID-19); risks and
uncertainties related to interruptions in production; the
possibility that future exploration, development, or mining results
will not be consistent with Bluestone's expectations; uncertain
political and economic environments and relationships with local
communities and governmental authorities; risks relating to
variations in the mineral content within the mineral identified as
mineral resources from that predicted; variations in rates of
recovery and extraction; developments in world metals markets; and
risks related to fluctuations in currency exchange rates. For a
further discussion of risks relevant to Bluestone, see "Risk
Factors" in the Company's annual information form for the year
ended December 31, 2019, available on
the Company's SEDAR profile at www.sedar.com.
Any forward-looking statement speaks only as of the date on
which it was made, and except as may be required by applicable
securities laws, Bluestone disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new
information, future events or results, or otherwise. Although
Bluestone believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance, and
accordingly, undue reliance should not be put on such statements
due to their inherent uncertainty. There can be no assurance
that forward-looking statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements.
Non-IFRS Financial Performance Measures
The Company
has included certain non-International Financial Reporting
Standards ("IFRS") measures in this news release. The Company
believes that these measures, in addition to measures prepared in
accordance with IFRS, provide investors an improved ability to
evaluate the underlying performance of the Company and to compare
it to information reported by other companies. The non-IFRS
measures are intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures do not
have any standardized meaning prescribed under IFRS, and therefore
may not be comparable to similar measures presented by other
issuers.
All-in sustaining costs
The Company believes that
all-in sustaining costs ("AISC") more fully defines the total costs
associated with producing gold.
The Company calculates AISC as the sum of refining costs, third
party royalties, site operating costs, sustaining capital costs,
and closure capital costs all divided by the gold ounces sold to
arrive at a per ounce amount. Other companies may calculate this
measure differently as a result of differences in underlying
principles and policies applied. Differences may also arise due to
a different definition of sustaining versus non-sustaining
capital.
AISC reconciliation
AISC and costs are calculated
based on the definitions published by the World Gold Council
("WGC") (a market development organization for the gold industry
comprised of and funded by 18 gold mining companies from around the
world). The WGC is not a regulatory organization.
SOURCE Bluestone Resources Inc.