Vancouver, British Columbia–(Newsfile Corp. – April 9, 2018) – Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce additional underground sampling results from its Cerro Blanco Gold project in Guatemala. Bonanza grade gold and silver mineralization at Cerro Blanco is associated with epithermal quartz-adularia veins and vein swarms that sit immediately below a silicified cap that forms a low-lying hill.
The sampling is being undertaken in conjunction with a 10,000-meter resource definition drill program and will be incorporated into the Feasibility Study expected to be completed by the end of the year. A total of five drill rigs are currently operating at Cerro Blanco, three rigs are carrying out resource definition within the three kilometers of underground development, while two drill rigs are operating from surface targeting deeper and peripheral extensions to the known veins. Assay results received for initial drill holes are being compiled, with results to be announced shortly.
The assay results reported in this press release are additional to the underground sample results reported previously (see Company press release dated January 23, 2018). Samples were taken from vein exposures within the underground development comprising the North and South Ramps. The average grade of the 205 samples was 10.8 g/t Au and 32.2 g/t Ag, ranging from trace to 276.9 g/t Au and up to 752.0 g/t Ag; 42% of the samples (86) averaged over 5.0 g/t Au, and 27% of the samples (56) averaged greater than 10.0 g/t Au.
Sample highlights are shown in the table below. Maps and sections showing location of the samples can be viewed by clicking this link HERE.
The underground sampling program continues to be successful in identifying high-grade veins both within and outside of the current PEA resource envelope and is playing a key role in the definition of veins that will be incorporated into an updated resource estimate planned for mid-year.
Darren Klinck, President and CEO commented, “The ongoing sampling program from our underground development continues to provide very exciting results. These results are proving extremely valuable in validating the geological model from the previous surface drilling, and importantly, have been instrumental for our geology team to firm up our confidence in the main mineralizing structures and identify new veins not previously recognized or included in the model.” Mr. Klinck added, “Having more than three kilometers of underground development is now providing us with great access for the underground drilling program, and we expect to start seeing results from this program in the near future.”
Table 1 Sampling Highlights
|Sample #||Width||Au g/t||Ag g/t||Sample #||Width||Au g/t||Ag g/t|
|3223 – 3226||5.20||9.9||23.7||3350||1.23||72.9||137.0|
|Sample #||Width||Au g/t||Ag g/t||Sample #||Width||Au g/t||Ag g/t|
|3123. 3124, 3176||3.0||14.9||44.6||3275||1.33||9.4||24.8|
|3151, 3153, 3171||1.4||18.8||57.8||3279, 3280||2.12||10.0||12.7|
|3160, 61, 66, 68||2.6||24.7||180.7||3281-3283||3.01||8.7||14.1|
|3189, 3190, 3191||2.67||19.1||36.9||3294, 3295||2.06||27.2||62.1|
|3192, 3193||2.00||28.2||119.4||3296, 3297||2.00||17.3||60.1|
The sampling program is ongoing and will also assist in trial mining, metallurgical, and dilution studies as part of the Feasibility Study. Results for approximately 80 additional underground channel samples are pending.
Samples were taken with a portable diamond rock saw as continuous channels approximately two inches wide and one inch deep, following industry best practice. Individual sample widths generally averaged one meter, wider veins and sheeted vein swarms include several samples taken over the total mineralized width. Sampling includes ten centimeters of hanging wall and footwall dilution.
About Cerro Blanco
Cerro Blanco is a classic “bonanza style” hot springs-related, low sulphidation gold-silver deposit. Mineralization occurs within composite veins of chalcedony, quartz, adularia and calcite which are hosted in altered sequence of volcanoclastic and sedimentary rocks. The current resource has a footprint of 800 meters x 400 meters between elevations of 300 meters and 500 meters above sea level. It occurs at the south end of a north-south corridor of hydrothermal alteration, about five kilometers long and one kilometer wide, which has potential for discovery of additional mineralization. This corridor has several other gold targets currently under investigation. The current resource comprises both high and low angle veins of colloform banded chalcedony with minor adularia, dark grey bands of silver sulphides and bladed calcite replacement textures. These textures are all classic indicators of boiling fluids that deposited gold and silver.
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 is undertaken at site at Cerro Blanco by Company personnel under a QA/QC protocol developed by Bluestone. Samples are transported in security sealed bags to Inspectorate, Guatemala City, Guatemala, for sample preparation. Sample pulps are shipped to Inspectorate Laboratories in Vancouver, BC, Canada or Reno, NV, USA, and assayed using industry-standard assay techniques for gold and silver. Gold and silver were analyzed by a 30-gram charge with atomic adsorption and/or gravimetric finish for values exceeding 3 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 sent to ALS Chemex Laboratories in Vancouver for check analyses and additional quality control.
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 technical information set out above in this news release is accurate and therefore approves this written disclosure of the technical information.
About Bluestone Resources
Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100% owned Cerro Blanco Gold and Mita Geothermal projects located in Guatemala. The Cerro Blanco Project economics, as disclosed in the Company’s Cerro Blanco Preliminary Economic Assessment which is available at www.sedar.com, and updated mineral resource estimate for Cerro Blanco indicates a robust project with an expected nine-year mine life producing 952,000 ounces of gold and 3,141,000 ounces of silver. Initial capital expenditures estimated in the PEA to fund construction and commissioning is estimated at US$170.8 million with all-in sustaining cash costs (as defined per World Gold Council guidelines, less corporate general and administration costs) estimated to be US$490 per ounce of gold produced. The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.
On Behalf of Bluestone Resources Inc.
Darren Klinck | President, Chief Executive Officer & Director
The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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 interpretation of exploration results; statements about the Company’s plans for its mineral properties; Bluestone’s business strategy, plans and outlook; the future financial or operating performance of Bluestone; capital expenditures, corporate general and administration expenses and exploration and development expenses; expected working capital requirements; the future financial estimates of the Cerro Blanco Project economics, including estimates of capital costs of constructing mine facilities and bringing a mine into production and of sustaining capital costs, estimates of operating costs and total costs, net present value and economic returns; proposed production timelines and rates; funding availability; resource estimates; and future exploration and operating plans are forward-looking statements. 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 the Company’s current beliefs as well as various assumptions made by them and information currently available to them. Generally, these assumptions include, among others: the ability of Bluestone to carry on exploration and development activities; the price of gold, silver and other metals; there being no material variations in the current tax and regulatory environment; the exchange rates among the Canadian dollar, Guatemalan quetzal and the United States dollar remaining consistent with current levels; 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; 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 operation; the availability of acceptable financing; anticipated mining losses and dilution; success in realizing proposed operations; 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 the Company 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: risks and uncertainties related to expected production rates, timing and amount of production and total costs of production; risks and uncertainties related to ability to obtain 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 and uncertainties related to interruptions in production; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; uncertain political and economic environments and relationships with local communities; 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; risks related to fluctuations in currency exchange rates; as well as those factors discussed under “Risk Factors” in the Company’s Amended and Restated Annual Information Form.
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.