Bluestone Announces Updated Resource Estimate at Cerro Blanco; Increases Measured & Indicated Resources by 18% to 1.41 Moz at 10.3 g/t Au
Momentum Public Relations
Press Release: November 6, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce a new high-grade mineral resource estimate for the Cerro Blanco Gold project in Guatemala. Over the last nine months Bluestone has completed an infill drill program focused on converting Inferred Resources identified in the Feasibility Study into Measured and Indicated categories. The Cerro Blanco Feasibility Study (see press release January 29th, 2019) highlighted some 357,000 ounces of Inferred Resources (1.4 Mt grading 8.1 g/t Au) that could be potentially converted to Measured and Indicated Resources. The Feasibility Study was based on an initial eight-year mine life, demonstrating robust economics with an average LOM AISC of US$579/oz.
Highlights of the Resource Estimate (3.5 g/t Au cut-off)
- Measured category resources increased by 134%, totalling 607,714 tonnes grading 11.5 g/t Au, containing 225,118 ounces of gold
- Measured and Indicated Resources increased by 18% to 1.41 Moz averaging 10.3 g/t Au
- Majority of the 66 infill holes were drilled in the North Zone of the deposit, a similar program of infill drilling in the South Zone is now underway
Darren Klinck, President & CEO commented, “Cerro Blanco remains one of the highest-grade undeveloped gold projects amongst its peers. Our infill drill program which was primarily focused on converting Inferred Resources was highly successful and exceeded expectations. Overall the program added approximately 208,000 additional ounces of gold into Measured and Indicated Resource categories that will contribute to the reserve base, and potentially extend mine life. Two key outcomes of the resource conversion drill program were: the identification of five new veins in the North Zone, and an increase in Measured Resources to 225,000 gold ounces. We believe this recent infill drill program which was focussed in the North zone and the drilling currently underway in the South Zone have the potential to contribute additional mine life based on previous mine plan conversion rates. Every additional year of mine life has the potential to add approximately US$60 to US$80 million in free cash flow using a gold price of US$1,250 per oz Au.”
Table 1. Cerro Blanco High-Grade Resource Estimate at a 3.5 g/t Au cut-off
Resource Category | Tonnes | Au Grade g/t |
Ag Grade g/t |
Contained Gold (Oz) |
Contained Silver (Oz) |
Measured | 607,714 | 11.5 | 44.2 | 225,118 | 864,281 |
Indicated | 3,661,507 | 10.1 | 35.6 | 1,188,194 | 4,193,343 |
Measured & Indicated | 4,269,221 | 10.3 | 36.8 | 1,413,312 | 5,057,624 |
Inferred | 466,218 | 7.1 | 16.6 | 107,215 | 248,488 |
- Effective date: November 1, 2019. All Mineral Resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”) definitions, as required under NI 43-101. Mineral Resource Statement prepared by Garth Kirkham (Kirkham Geosystems Ltd.) in accordance with NI 43-101.
- Measured Resources include 29,726t of stockpiled material grading 5.35 g/t Au and 22.6 g/t Ag.
- Mineral Resources reported demonstrate reasonable prospect of eventual economic extraction, as required under NI 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The Mineral Resources may be materially affected by environmental, permitting, legal, marketing, and other relevant issues.
- Underground Mineral Resources are reported at a cut-off grade of 3.5 g/t Au. Cut-off grades are based on a price of US$1,250/oz gold, US$16/oz silver, and a number of operating cost and recovery assumptions, including a reasonable contingency factor.
- Density used was 2.53 t/m3 for mineralized material.
- Ounce (troy) = metric tonnes x grade / 31.10348. All numbers have been rounded to reflect the relative accuracy of the estimate. Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Resources.
David Cass, Vice President Exploration commented, “The successful completion of this infill drilling program has further enhanced our geological understanding of the Cerro Blanco mineralization and our confidence in the resource continues to improve. Throughout the drilling we have continued to be impressed by the continuity and predictability of the veins, most of which require further detailed drilling to define their lateral and depth extensions. Furthermore, our confidence in the model is further enhanced by trial stoping along veins in the Cerro Blanco underground workings which continues to improve orebody knowledge (see press release dated September 4, 2019).”
The updated Mineral Resource estimate is the result of an additional 8,567 meters of drilling (66 drill holes) drilled as part of Bluestone’s infill drill program that commenced in November 2018 and was focused in the North Zone underground workings. The estimate is based on an increasingly better understanding of the geological model, supported by over 3 kilometers of underground infrastructure and 526 underground channel samples. To date, over 138,000 meters in 646 holes have been drilled at the property by Bluestone and previous workers.
Table 2: Cerro Blanco High-Grade Resource Estimate* at Various Gold Cut-off Grades
Resource Category | Cut-off | Tonnes | Grade (Au g/t) |
Grade (Ag g/t) |
Contained Gold (oz.) |
Contained Silver (oz) |
Measured | 2.5 | 654,166 | 10.8 | 41.7 | 227,266 | 876,176 |
3 | 611,140 | 11.4 | 43.7 | 223,467 | 858,015 | |
3.5 | 577,988 | 11.8 | 45.3 | 220,004 | 842,691 | |
4 | 545,381 | 12.3 | 47.1 | 216,073 | 825,733 | |
4.5 | 508,370 | 12.9 | 49.2 | 211,012 | 803,851 | |
Indicated | 2.5 | 4,503,842 | 8.8 | 31.4 | 1,268,927 | 4,552,459 |
3 | 4,061,302 | 9.4 | 33.5 | 1,229,917 | 4,370,821 | |
3.5 | 3,661,507 | 10.1 | 35.6 | 1,188,194 | 4,193,343 | |
4 | 3,293,700 | 10.8 | 37.9 | 1,143,887 | 4,008,172 | |
4.5 | 2,935,960 | 11.6 | 40.2 | 1,094,990 | 3,795,334 | |
Measured & Indicated | 2.5 | 5,158,008 | 9.0 | 32.7 | 1,496,193 | 5,428,635 |
3 | 4,672,442 | 9.7 | 34.8 | 1,453,384 | 5,228,836 | |
3.5 | 4,239,495 | 10.3 | 36.9 | 1,408,199 | 5,036,034 | |
4 | 3,839,082 | 11.0 | 39.2 | 1,359,959 | 4,833,905 | |
4.5 | 3,444,330 | 11.8 | 41.5 | 1,306,002 | 4,599,186 | |
Inferred | 2.5 | 613,434 | 6.1 | 15.4 | 121,161 | 303,819 |
3 | 526,930 | 6.7 | 15.9 | 113,542 | 269,554 | |
3.5 | 466,218 | 7.2 | 16.6 | 107,215 | 248,488 | |
4 | 404,649 | 7.7 | 17.1 | 99,786 | 222,956 | |
4.5 | 349,422 | 8.2 | 17.5 | 92,259 | 196,705 |
- Base Case cut-off grade in Bold.
- Measured Resources exclude Stockpile – 29,726t grading 5.35 g/t Au and 22.6 g/t Ag.
Cerro Blanco is a classic hot springs-related, low sulphidation epithermal gold-silver deposit comprising a system of moderate to steeply dipping quartz-adularia-calcite veins. The above Resource has a footprint of 800 x 400 meters between elevations of 525 meters and 200 meters above sea level. The bulk of the high-grade veins occurs as two upward-flared vein arrays (North and South Zones) that converge at depth into master feeder veins that appear to define a positive flower structure, defining mineralization over a vertical distance of approximately 300 meters. Most of the veins are hosted in a gently dipping sequence of siltstones, limestones, conglomerates, and andesitic tuffs (Mita Unit) that are overlain by approximately 100 meters of silicified conglomerates and sinter beds (Salinas Unit) representing a silica cap that forms the low-lying hill at Cerro Blanco.
Mineral Resource Estimation
The Mineral Resource estimate for Cerro Blanco was prepared to industry standards and best practices using commercial mine modelling and geostatistical software. Garth Kirkham, P.Geo., is the Independent Qualified Person responsible for the Mineral Resource estimates for the purposes of NI 43-101. The geologic models and domains were completed under the supervision of Bluestone’s Vice President of Exploration, David Cass, P.Geo., and Geology Manager, Carlos Chiquin. The deposit was segregated into multiple estimation domains for the vein domains based on geologic and structural models with the Mineral Resources estimated by inverse distance interpolation of capped composites.
Bluestone and its consultants conducted extensive structural studies and analyses to assess the quality of the pre-Bluestone legacy drill hole data in preparation of the Mineral Resource estimates. Confirmatory drilling by Bluestone has shown the data to be of high quality, increasing confidence and understanding of the Cerro Blanco deposit. The improved constraints on mineralization provided by this updated geological model at Cerro Blanco have reduced the variance of resource sensitivities.
The Mineral Resource estimates employed state of the art commercial modelling and mine planning systems (LeapFrog and MineSight R v15.50). The block model has a parent block size of 5 x 5 x 1 meters with a sub-block size of 1 x 1 x 0.1 meters. Assays were composited to 1.5 meters to insure regularized, common sample support. The methodology employed was inverse distance in a single pass using capped gold and silver composites which were limited to selected thresholds based on analysis of cumulative frequency plots and commonalities of veins. Cut grade thresholds ranged from 18 g/t to 110 g/t Au and 100 g/t Ag to 300 g/t Ag. Hard boundaries were used for each vein with a minimum of 2 composites per block and a maximum of 9 per block, 3 maximum composites per drill hole or channel sample.
Mineral Resources are classified under the categories of Measured, Indicated, and Inferred according to CIM guidelines. Mineral Resource classification for gold was based primarily on drill hole spacing and on continuity of mineralization. Measured Resources were defined as blocks within a distance lateral to the ramp and along veins within 15 meters. Indicated Resources were defined as those within a distance to three drill holes of less than 40 meters. Inferred Resources were defined as those with a drill hole spacing of less than ~75 meters and meeting additional requirements. All Resources are constrained by the continuous vein solids. Final Resource classification shells were manually constructed on sections. Mined out ramp material was extracted from the Measured Resources. Silver was not classified separately and is reported based on gold classification.
Qualified Persons
The Mineral Resource Estimate in this release has an effective date of November 1, 2019 and was prepared in accordance with NI 43-101 by Garth Kirkham, P.Geo., a Qualified Person for NI 43-101. Mr. Kirkham is an employee of Kirkham Geosystems Ltd., and is an independent Qualified Person as defined by National Instrument 43-101. The scientific information in this release was reviewed by David Cass, P.Geo., Vice President Exploration for Bluestone. Both Qualified Persons have read and approved the information contained in this press release.
About Bluestone Resources
Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100%-owned high-grade Cerro Blanco Gold project located in Guatemala. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). 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”
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
- Published in Bluestone Resources, Mining, News Home
Cerro Blanco Drilling Delivers 11.1 m grading 8.5 g/t Au and 6.1 m grading 13.7 g/t Au Files Final Base Shelf Prospectus
Momentum Public Relations
Press Release: September 26, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce additional high-grade drill assays from its ongoing infill resource conversion program at its Cerro Blanco Gold project.
Several high-grade intercepts were drilled including:
- 1.0 meter grading 28.6 g/t Au & 186.0 g/t Ag
- 5.2 meters grading 8.2 g/t Au & 10.8 g/t Ag
- 6.1 meters grading 13.7 g/t Au & 10.8 g/t Ag
- 6.1 meters grading 11.9 g/t Au & 18.0 g/t Ag
- 11.1 meters grading 8.5 g/t Au & 7.1 g/t Ag
The focus of the current drill program is the conversion of Inferred Resources within key veins in the upper part of the Cerro Blanco deposit and vein extensions outside of the current resource. The Cerro Blanco Feasibility Study (see press release January 29, 2019) highlighted 357,000 ounces of Inferred Resources (1.4 Mt grading 8.1 g/t Au) that could be potentially converted to Measured and Indicated Resources through infill drilling.
Darren Klinck, President and CEO commented, “We are pleased with the continued success of the infill drill program in the North Zone of the deposit which has been a focus for us the last six months. We expect to put out an updated resource in the coming weeks reflecting the additional information generated from the drilling in the North Zone. As well, with the positive impact this program will ultimately have on adding value to the Cerro Blanco project, we are continuing to drill, shifting our focus to the South Zone for the next several months.”
Table 1. Significant Intercepts (this Press Release)
HOLE ID | FROM (m) | TO (m) | CORE INTERVAL(m) |
TRUE WIDTH (m) |
Au g/t | Ag g/t | Vein ID |
UGCB19-153 | 115.7 | 116.7 | 1.0 | 1.0 | 28.6 | 186.0 | VN_02 |
138.3 | 139.3 | 1.0 | 1.0 | 16.7 | 47.2 | VN_05 | |
UGCB19-154 | 79.8 | 83.6 | 3.8 | 3.1 | 3.2 | 14.2 | VN_02,03 |
107.0 | 108.0 | 1.0 | 1.0 | 11.8 | 26.3 | VN_06 | |
UGCB19-155 | 3.7 | 4.8 | 1.1 | 1.0 | 4.9 | 6.2 | VN_27 |
14.5 | 15.5 | 1.1 | 1.0 | 7.9 | 9.6 | VN_26 | |
64.8 | 70.4 | 5.6 | 5.2 | 8.2 | 10.8 | VN_02,03 | |
75.3 | 82.3 | 7.0 | 6.1 | 11.9 | 18.0 | VN_05,06,07 | |
CB19-410 | 134.9 | 135.9 | 1.0 | 1.0 | 6.7 | 17.2 | VN_30 |
145.5 | 146.5 | 1.0 | 1.0 | 5.6 | 15.5 | VN_16 | |
152.2 | 155.5 | 3.3 | 3.1 | 3.6 | 5.1 | VN_15 | |
162.6 | 165.9 | 3.3 | 3.0 | 8.6 | 17.9 | VN_14 | |
181.0 | 182.6 | 1.7 | 1.3 | 25.5 | 12.6 | VN_13 | |
211.7 | 218.2 | 6.5 | 6.1 | 13.7 | 10.8 | VN_11 | |
222.4 | 233.9 | 11.5 | 11.1 | 8.5 | 7.1 | VN-10 | |
241.7 | 242.7 | 1.0 | 1.0 | 5.8 | 6.9 | VN_09 | |
CB19-413 | 128.9 | 129.9 | 1.0 | 1.0 | 4.6 | 4.3 | – |
133.5 | 134.5 | 1.0 | 1.0 | 7.3 | 6.7 | VN_17 | |
143.3 | 144.3 | 1.0 | 1.0 | 5.6 | 25.7 | VN_16 | |
224.1 | 225.1 | 1.1 | 1.0 | 7.5 | 9.3 | VN_11 | |
244.2 | 245.1 | 0.9 | 0.9 | 3.7 | 3.8 | VN_09 | |
254.8 | 255.8 | 1.0 | 1.0 | 4.0 | 3.7 | VN_01 | |
CB19-414 | 164.5 | 165.6 | 1.1 | 1.0 | 3.9 | 21.1 | VN_15 |
239.7 | 247.4 | 7.7 | 7.5 | 4.8 | 11.7 | VN_09,25 | |
CB19-415 | 137.1 | 141.2 | 4.1 | 4.0 | 4.1 | 8.2 | VN_30 |
159.6 | 160.6 | 1.0 | 1.0 | 4.8 | 26.8 | VN_16 | |
166.0 | 168.0 | 2.0 | 1.9 | 9.1 | 8.9 | VN_15 | |
196.0 | 197.5 | 1.5 | 1.2 | 3.8 | 2.9 | VN_13 | |
217.4 | 218.4 | 1.0 | 1.0 | 22.3 | 64.5 | VN_12 | |
231.6 | 235.9 | 4.3 | 4.2 | 4.8 | 3.9 | VN_10 | |
250.1 | 251.1 | 1.0 | 1.0 | 3.9 | 2.9 | VN_09 | |
CB19-416 | 182.6 | 183.6 | 1.0 | 1.0 | 4.0 | 4.3 | – |
241.6 | 242.6 | 1.0 | 1.0 | 7.4 | 5.9 | VN_25 | |
253.7 | 254.7 | 1.0 | 1.0 | 4.5 | 5.0 | VN_08 |
Intervals in bold are cited in the text of this press release. Only intercepts averaging over 3 g/t Au when diluted to a minimum 3 meters true width are stated. Hole coordinates and azimuth/dip information accompany the plan view attached to this release.
A plan showing drill hole locations can be accessed by clicking HERE.
Underground drill holes UGCB-153 and 154 were sub-horizontal holes drilled from two different locations in the North Zone workings and both reached their objective of intersecting the south-westerly extension of vein VN_02. Hole UGCB-155, drilled to the east, intersected multiple veins including 6.1 meters (true width) grading 11.9 g/t Au (VN_05, 06, 07). Holes CB19-410, and 413-416 were drilled from surface to test for multiple veins at deeper elevations in the North Zone resource, with a best intercept of 8.5 g/t Au over 11.1 meters true width in vein VN_10.
Precious metal mineralization at Cerro Blanco is associated with classic low sulphidation adularia-sericite epithermal quartz veins and vein swarms hosted in altered sequence of volcanoclastic and sedimentary rocks. Higher grades (>20 g/t Au and >60 g/t Ag) are associated with visible gold and silver sulphides in ginguro-style colloform-banded veins.
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, 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 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.
Base Shelf Prospectus
The Company is pleased to announce that that it has filed a final short form base shelf prospectus (the “Final Prospectus”) with the securities commissions in each of the provinces of Canada, except Quebec.
The Final Prospectus will, subject to the filing of a shelf prospectus supplement (the “Prospectus Supplement”), allowing Bluestone to offer up to an aggregate of C$200,000,000 of common shares, preferred shares, debt securities, subscription receipts, units, warrants and share purchase contracts from time to time over the 25-month period, until the Final Prospectus expires on October 26, 2021.The specific terms of any future offering will be established in a Prospectus Supplement, which will be filed with the applicable Canadian securities regulatory authorities.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualifications under the securities laws of any such jurisdiction.
A copy of the Final Prospectus may be obtained from the Corporate Secretary of the Company by directing a request to Bluestone at Suite 1020, 800 West Pender Street, Vancouver, British Columbia, Canada, V6C 2V6, Attn: Corporate Secretary, or can be downloaded from SEDAR at www.sedar.com.
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. A Feasibility Study on Cerro Blanco (see press release January 29, 2019) returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). 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”
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
- Published in Bluestone Resources, Mining, News Home
Bluestone Announces Consistent High-Grade Channel Sampling Results in Development Drift averaging 22.4 g/t Au and 122 g/t Ag over 22 meters along vein
Momentum Public Relations
Press Release: September 4th, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce results from channel sampling of high-grade veins within two separate development headings in both the North and South zones of the Cerro Blanco underground workings.
Early underground development and mining activities using Bluestone’s mine equipment and personnel are being undertaken as part of an operational readiness and project de-risking initiative ahead of development. Assay results from the successive channel sampling of two different development drifts, on two individual veins, one located in the North Zone (VN_10) and the other in the South Zone (VS_10), are presented in this press release. Sampling of the veins was done at the face after each successive blast as the drift advanced. The objective of this ongoing work is to improve ore body knowledge by providing valuable information on grade continuity, vein orientation, and the applicability of mining methods.
Darren Klinck, President and CEO commented, “Sampling during the advancement of the drift along the strike of the vein has returned consistent grade and widths with good continuity. We are pleased to see vein VS_10 in the South average 22 g/t Au over the 22 meters of development completed. We continue to improve our orebody knowledge as we prepare for underground mining and construction-related activities next year.”
About Bluestone Resources
Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100%-owned high-grade Cerro Blanco Gold project located in Guatemala. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.
Table 1. Underground Channel Sample Assays – Drift S314 (South Zone)
SAMPLE ID | HEADING | WIDTH (m) | Au g/t | Ag g/t | VEIN ID |
RCB-3527 | L4_S314_W | 1.2 | 23.8 | 192 | VS_10 |
RCB-3528 | L4_S314_W | 1.1 | 23.9 | 116 | VS_10 |
RCB-3529 | L4_S314_W | 0.9 | 20.3 | 77.2 | VS_10 |
RCB-3531 | L4_S314_W | 1.0 | 26.3 | 72.6 | VS_10 |
RCB-3160 | L4_S314_E | 0.7 | 18.4 | 85.0 | VS_10 |
RCB-3161 | L4_S314_E | 0.6 | 38.3 | 200.0 | VS_10 |
RCB-3166 | L4_S314_E | 0.7 | 21.5 | 236.0 | VS_10 |
RCB-3168 | L4_S314_E | 0.6 | 22.3 | 97.0 | VS_10 |
RCB-3188 | L4_S314_W | 1.00 | 37.6 | 157 | VS_10 |
RCB-3192 | L4_S314_E | 1.0 | 23.2 | 96.7 | VS_10 |
RCB-3193 | L4_S314_E | 1.0 | 33.1 | 142.0 | VS_10 |
RCB-3523 | L4_S314_E | 1.2 | 17.2 | 92.5 | VS_10 |
RCB-3524 | L4_S314_E | 1.0 | 10.5 | 60.3 | VS_10 |
RCB-3525 | L4_S314_E | 1.0 | 22.6 | 158 | VS_10 |
RCB-3526 | L4_S314_E | 1.0 | 21.6 | 70.4 | VS_10 |
RCB-3530 | L4_S314_E | 1.0 | 22.3 | 175 | VS_10 |
RCB-3443 | L4_S314_E | 1.2 | 21.4 | 94.2 | VS_10 |
RCB-3658 | L4_S314_E | 1.0 | 20.2 | 162 | VS_10 |
RCB-3659 | L4_S314_E | 1.0 | 18.8 | 147 | VS_10 |
RCB-3660 | L4_S314_E | 1.0 | 12.7 | 65.6 | VS_10 |
RCB-3664 | L4_S314_E | 1.0 | 14.0 | 51.9 | VS_10 |
RCB-3666 | L4_S314_E | 1.0 | 12.9 | 80.9 | VS_10 |
RCB-3675 | L4_S314_E | 1.0 | 26.2 | 132 | VS_10 |
RCB-3711 | L4_S314_E | 1.0 | 25.4 | 69.7 | VS_10 |
RCB-3712 | L4_S314_E | 1.0 | 48.5 | 214 | VS_10 |
RCB-3713 | L4_S314_E | 1.0 | 14.8 | 73.1 | VS_10 |
RCB-3714 | L4_S314_E | 1.0 | 17.0 | 83.9 | VS_10 |
RCB-3715 | L4_S314_E | 1.0 | 14.6 | 71.4 | VS_10 |
RCB-3716 | L4_S314_E | 1.0 | 19.3 | 93 | VS_10 |
RCB-3718 | L4_S314_E | 1.0 | 25.3 | 127 | VS_10 |
RCB-3719 | L4_S314_E | 1.0 | 26.3 | 74.2 | VS_10 |
Table 2. Underground Channel Sample Assays -Drift N636 (North Zone)
SAMPLE ID | HEADING | Width_(m) | Au g/t | Ag g/t | VEIN ID |
RCB-3339 | L6 N636 NE | 1.0 | 16.4 | 84.7 | VN_10 |
RCB-3554 | L6 N636 NE | 1.0 | 36.1 | 70.5 | VN_10 |
RCB-3555 | L6 N636 NE | 1.0 | 23.2 | 62.2 | VN_10 |
RCB-3556 | L6 N636 NE | 1.0 | 60.5 | 68.9 | VN_10 |
RCB-3557 | L6 N636 NE | 1.0 | 18.3 | 51.3 | VN_10 |
RCB-3698 | L6 N636 NE | 1.0 | 21.6 | 81.3 | VN_10 |
RCB-3699 | L6 N636 NE | 1.0 | 82.5 | 150 | VN_10 |
RCB-3700 | L6 N636 NE | 1.0 | 25.3 | 49 | VN_10 |
RCB-3701 | L6 N636 NE | 1.0 | 22.2 | 30.9 | VN_10 |
RCB-3702 | L6 N636 NE | 1.0 | 25.6 | 70.9 | VN_10 |
RCB-3727 | L6 N636 NE | 1.0 | 11.2 | 31.1 | VN_10 |
Plan, sections and photos can be accessed by clicking HERE.
Sampling Methodology
For each heading, several channel samples were taken perpendicular across the vein, and where possible, along the roof of the drift at spacings of approximately 1.0 meter using a portable core saw. Sampled faces are approximately 3 – 4 meters apart (depending on the advance of each blast) and vein widths varied between 0.65 – 0.85 meters (VN_10) and 0.45 – 0.75 meters (VS_10). In each case, sample widths of 1.0 meter were taken to include some hanging wall and footwall dilution around the veins and represent a minimum mining width. Veins comprise white chalcedonic quartz and minor adularia with dark grey banding due to the inclusion of silver sulphides and gold.
Development Drift S314 (South Zone)
Vein VS_10 is a new vein that was discovered by Bluestone early in its exploration program. While only contributing approximately 35,000 oz to the current reserve model, it was selected for trial mining as an example of a narrow, moderately dipping vein in the upper part of the South Zone orebody (see photos and plans). VS_10 averages 50 degrees and is hosted within gently dipping fine-grained sandstones (Mbt). The average grade of 31 vein samples taken from the faces over the 21.6-meter length of the drift was 22.4 g/t and 114 g/t Ag. Grades show remarkable consistency as seen in Table 1, with a minimum assay of 10.5 g/t Au and maximum assay of 48.5 g/t Au.
Of note in the drift are several narrow (approximately 20 cm) sub-horizontal conjugate veins in the footwall that eventually merge to VS_10 that also contain high grade gold values (see photo). Four 1.0-meter samples incorporating both vein and wall rock dilution assayed from 7.3 g/t to 73.8 g/t Au. A full table of all assay results (Table 3) is included in the attached figures.
Development Drift N636 (North Zone)
Vein VN_10 is one of the main targeted veins in the current infill drill program and is exposed in a new development drift in the lowest section of the North Ramp. The vein averages 0.65 – 0.8 meters in width and dips at 70 degrees. The average grade of 12 samples taken in 5 successive headings over the 14.9- meter length of the drift was 31.2 g/t and 68 g/t Ag, including wall rock dilution. Assays ranged from 11.2 g/t Au and 82.5 g/t Au showing consistency of high grades, similar to VS_10. Recent infill drilling (hole CB 409) intersected and extended this vein some 62 meters down dip (see press release January 9, 2019).
Precious metal mineralization at Cerro Blanco is associated with classic low sulphidation adularia-sericite epithermal quartz veins and vein swarms hosted in altered sequence of volcanoclastic and sedimentary rocks. Higher grades (>20 g/t Au and >60 g/t Ag) are associated with visible gold and silver sulphides in ginguro-style colloform-banded veins.
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. Sampling was undertaken on site at Cerro Blanco by Company personnel under a QA/QC protocol developed by Bluestone under the supervision of David Cass, Qualified Person for 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 analysed 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. Additionally, pulps and coarse rejects are routinely 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 technical information set out above in this news release is accurate and therefore approves this written disclosure of the technical information.
On Behalf of Bluestone Resources Inc.
“Darren Klinck”
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
- Published in Bluestone Resources, Mining, News Home
Bluestone Drilling Delivers 13.7 meters grading 11.2 g/t Au & 78 g/t Ag (13.1 meters true width)
Momentum Public Relations
Press Releases: August 21, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce additional high-grade drill assays from its ongoing infill resource conversion program at its Cerro Blanco Gold project.
The focus of the current drill program is the conversion of Inferred Resources within key veins in the upper part of the Cerro Blanco ore body and vein extensions outside of the current resource. The Cerro Blanco Feasibility Study (see press release January 29, 2019) highlighted 357,000 ounces of Inferred Resources (1.4 Mt grading 8.1 g/t Au) that could be potentially converted to Measured and Indicated Resources through infill drilling.
Darren Klinck, President and CEO commented, “We are pleased with the continued success of the infill drill program in the North Zone of the deposit which has been a focus for us the last six months. We expect to put out an updated resource later this year reflecting the additional information generated from the drilling in the North Zone. As well, with the positive impact this program will ultimately have on adding value to the Cerro Blanco project, we are continuing to drill, shifting our focus to the South Zone for the next several months.”
Highlights from initial results in the South Zone, include hole UGCB19-147 which was drilled at minus 15 degrees to the north in the South Zone underground workings and intercepted a total of seven sub-parallel sheeted veins, including Vein VS_06 which assayed 11.2 g/t Au and 78 g/t Ag over 13.7 meters.
Table 1. Significant Intercepts – North and South Zones (this Press Release)
HOLE ID | FROM (m) | TO (m) | CORE INTERVAL (m) | TRUE WIDTH (m) | Au g/t | Ag g/t | Vein ID | ||
UGCB19-147 | 11.0 | 11.8 | 0.9 | 0.9 | 19.5 | 41 | VS_15 | ||
18.5 | 20.6 | 2.1 | 2.0 | 16.3 | 42 | VS_14 | |||
37.0 | 37.9 | 1.0 | 1.0 | 7.5 | 8 | VS_10 | |||
47.3 | 50.0 | 2.7 | 2.5 | 11.8 | 40 | VS_08 | |||
57.0 | 57.9 | 0.9 | 0.9 | 21.5 | 44 | VS_07 | |||
62.8 | 76.5 | 13.7 | 13.1 | 11.2 | 78 | VS_06 | |||
Inc | 62.8 | 68.7 | 6.0 | 5.8 | 21.2 | 138 | |||
81.3 | 92.1 | 10.7 | 10.3 | 4.0 | 23 | VS_05 | |||
UGCB19-148 | 8.6 | 9.6 | 1.0 | 1.0 | 19.7 | 17 | VN_28 New | ||
38.4 | 46.9 | 8.5 | 8.5 | 8.6 | 46 | VN_02, 03, 05 | |||
61.4 | 61.9 | 0.5 | 0.5 | 5.1 | 61 | VN_06 | |||
77.7 | 78.7 | 1.0 | 1.0 | 4.8 | 37 | VN_09 | |||
UGCB19-149 | 143.2 | 144.7 | 1.5 | 1.5 | 6.6 | 28 | – | ||
UGCB19-150 | 9.8 | 10.8 | 1.0 | 1.0 | 11.8 | 13 | – | ||
19.7 | 20.7 | 1.0 | 1.0 | 40.6 | 34 | VN_27_New | |||
35.9 | 37.2 | 1.3 | 1.2 | 6.7 | 7 | VN_28 New | |||
88.8 | 93.2 | 4.4 | 4.1 | 21.7 | 43 | VN_02, 03, 05 | |||
UGCB19-151 | 13.3 | 14.3 | 1.0 | 1.0 | 3.9 | 8 | VN_18 | ||
100.5 | 101.3 | 0.7 | 0.7 | 9.1 | 34 | VN_02 | |||
UGCB19-152 | 11.5 | 12.5 | 1.0 | 1.0 | 6.3 | 7 | – | ||
24.1 | 25.1 | 1.0 | 0.9 | 25.6 | 47 | VN_27_New | |||
39.6 | 41.9 | 2.3 | 2.1 | 49.2 | 42 | VN_28 New | |||
102.3 | 103.9 | 1.6 | 1.4 | 35.7 | 40 | VN_03, 05 | |||
CB19-411 | 131.0 | 132.0 | 1.0 | 1.0 | 10.0 | 22 | VN_30 New | ||
142.8 | 143.9 | 1.1 | 1.1 | 6.7 | 9 | – | |||
148.7 | 152.4 | 3.6 | 3.2 | 7.4 | 9 | VN_16 | |||
157.7 | 160.8 | 3.1 | 2.9 | 4.6 | 7 | VN_15 | |||
170.3 | 172.5 | 2.2 | 2.0 | 6.5 | 5 | VN_14 | |||
215.9 | 225.4 | 9.5 | 9.1 | 7.2 | 16 | VN_11 | |||
228.3 | 232.4 | 4.1 | 4.0 | 13.0 | 9 | VN_10 | |||
240.4 | 241.4 | 1.0 | 1.0 | 6.2 | 4 | VN_09 |
Notes: Intervals in bold are cited in the text of the press release. Only intercepts averaging over 3 g/t Au when diluted to a minimum 3 meters true width are stated. Hole coordinates and azimuth/dip information accompany the plan view attached to this release.
Holes UGCB19-145 and UGCB19-146 were drilled steeply upwards and designed to test for extensions of veins VN_01, 02, and 05 within the upper Salinas conglomerates/sinter zone. No significant intercepts were drilled, only narrow, low-grade veins, in line with the current model that the veins diminish within this upper silicified unit.
Holes UGCB19-148 to UGCB19-152 are a series of holes drilled at horizontal to positive angles (upwards) from 4 individual platforms in the North Zone underground workings and intercepted targeted veins including 4.4 meters at 21.7 g/t Au and 2.3 meters at 49.2 g/t Au in UGCB19-150 and UGCB19-152, respectively.
Hole CB19-411 drilled from surface successfully intercepted all targeted veins including 9.5 meters (9.1 meters true width) grading 7.2 g/t Au and 16 g/t Ag (Vein VN_11). Of note, Vein VN_10, which assayed 4 meters grading 13 g/t Au, was extended approximately 75 meters down-dip of its exposure in the North Zone underground workings.
A plan showing drill hole locations can be accessed by clicking HERE.
Precious metal mineralization at Cerro Blanco is associated with classic low sulphidation adularia-sericite epithermal quartz veins and vein swarms hosted in altered sequence of volcanoclastic and sedimentary rocks. Higher grades (>20 g/t Au and >60 g/t Ag) are associated with visible gold and silver sulphides in ginguro-style colloform-banded veins.
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, 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 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 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. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). 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”
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
- Published in Bluestone Resources, Mining, News Home
Underground Channel Sampling Delivers 20.4 meters grading 18.9 g/t Au & 33 g/t Ag
Momentum Public Relations
Press Release: July 9, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce channel sampling results taken across high-grade veins exposed in a recently opened cross-cut located in the North Zone of the Cerro Blanco underground workings. The samples were taken as horizontal channels perpendicular to the strike of the veins.
Cross-cut N734 was sealed off by the previous operator in 2015, but Bluestone recently re-opened and restored the initial 50 meters of tunnel as part of the Company’s successful ongoing exploration and underground development program. Channel sampling of both walls returned the following high-grade assays:
South Wall – 20.4 meters grading 18.9 g/t Au and 33 g/t Ag (est. true width 16.7 meters)
North Wall – 19.9 meters grading 17.1 g/t Au and 23 g/t Ag (est. true width 16.9 meters)
David Cass, Vice President of Exploration commented, “The successful re-opening of this exploration drive has permitted sampling of several key veins within the upper portion of the Cerro Blanco resource and helped validate their importance within the current resource model. These impressive high-grade assays are consistent with our sampling early last year of the same veins lower down in the main decline of the North Ramp some 50 meters away. The continuity and consistency of vein widths and grades is striking and supports our observations from the ongoing infill resource conversion drilling as we continue to advance our knowledge of the Cerro Blanco orebody and de-risk the project.”
A summary of results is shown in Table 1 below. A full set of individual assays, plans and photos showing the location of samples can be accessed here.
Table 1. Channel Sample Results
SOUTH WALL | |||||||||||
Sample # | Sample Width (m) |
True Width (m) |
Au g/t | Ag g/t | Vein ID | ||||||
RCB-3655 | 1.0 | 1.0 | 9.8 | 15.9 | VN-02 | ||||||
RCB 3570,3656 | 1.9 | 1.9 | 4.8 | 24.8 | NEW | ||||||
RCB 3657 | 1.0 | 1.0 | 16.7 | 19.6 | VN-03 | ||||||
RCB 3599-3609 | 7.5 | 7.0 | 19.4 | 25.2 | VN_05 | ||||||
inc. | 1.9 | 1.8 | 38.7 | 39.6 | |||||||
RCB 3612-13 | 2.0 | 1.8 | 6.9 | 16.9 | VN_06 | ||||||
RCB 3615-24 | 8.4 | 8.0 | 26.7 | 53 | VN_07 | ||||||
inc. | 1.3 | 1.2 | 98.8 | 197 | |||||||
20.4 | 16.7 | 18.9 | 33.2 | VN_05,06,07 |
NORTH WALL | |||||||||||
Sample # | Sample Width (m) |
True Width (m) |
Au g/t | Ag g/t | Vein ID | ||||||
RCB 3596 | 1.0 | 1.0 | 13.5 | 32.8 | VN_02 | ||||||
RCB3594 | 1.0 | 1.0 | 49.8 | 227 | VN_03 | ||||||
RCB 3625-32 | 7.8 | 7.3 | 21.0 | 25.8 | VN_05 | ||||||
inc. | 1.8 | 1.7 | 52.3 | 48.1 | |||||||
RCB 3635-36 | 2.3 | 2.2 | 5.1 | 15.3 | VN_06 | ||||||
RCB-3638-46 | 7.9 | 7.5 | 20.7 | 26.9 | VN_07 | ||||||
inc. | 1.3 | 1.2 | 77.2 | 63.6 | |||||||
19.9 | 16.9 | 17.1 | 23 | VN_05,06,07 |
A total of 47 samples were taken with a portable rock saw across exposures of five key veins VN-02, 03, 05, 06, and 07 as continuous channels approximately two inches wide and one inch deep. Individual sample widths ranged from 0.5 meter to 1.4 meters. Veins are parallel and dip between 60 to 65 degrees and consist of banded chalcedony quartz-adularia veins hosted within red siltstones. Assay results are in line with those previously reported from exposures of the same veins in the North Ramp (see Company press releases January 23, 2018 and April 9, 2018).
Sampling of the underground workings at Cerro Blanco continues to play a key role in identification of high-grade veins and in the validation of the geological model within and outside of the current resource envelope. Several additional veins are known to occur further east along the same cross-cut and will be sampled as rehabilitation of the cross-cut progresses.
Precious metal mineralization at Cerro Blanco is associated with classic low sulphidation adularia-sericite epithermal quartz veins and vein swarms hosted in altered sequence of volcanoclastic and sedimentary rocks. Higher grades (>20 g/t Au and >60 g/t Ag) are associated with visible gold and silver sulphides in ginguro-style colloform-banded veins.
Quality Analysis and Quality Control
Wire mesh was removed from sections to be sampled and walls cleaned by high-pressure power washing. Assay results were performed by Inspectorate Laboratories (“Inspectorate”), a division of Bureau Veritas, which are ISO 17025 accredited laboratories. Sampling was undertaken on site at Cerro Blanco by Company personnel under a QA/QC protocol developed by Bluestone under the supervision of David Cass, Qualified Person for 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 analysed 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. Additionally, pulps and coarse rejects are routinely 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 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. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). 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”
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
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 conversion of the inferred mineral resources; increasing the amount of measured mineral and indicated mineral resources; the proposed timeline and benefits of further drilling; the proposed timeline and benefits of the Feasibility Study; 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 relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; 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; 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.
Non-IFRS Financial Performance Measures
The Company has included certain non-International Financial Reporting Standards (“IFRS“) measures in this new 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.
Total cash costs
Total cash costs is a common financial performance measure in the gold mining industry but has no standard meaning. The Company reports total cash costs on a gold ounce sold basis. The Company believes that, in addition to measures prepared in accordance with IFRS, such as revenue, certain investors can use this information to evaluate the Company’s performance and ability to generate operating earnings and cash flow from its mining operations. Management uses this metric as an important tool to monitor operating cost performance.
Total cash costs include (cost of sales such as mining, processing, maintenance and site administration, royalties, selling costs and by-product credits) to arrive at total cash costs per ounce of gold sold. Other companies may calculate this measure differently.
AISC and total cash costs reconciliation
ASIC and total cash 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/46135
- Published in Bluestone Resources, Mining, News Home
Bluestone Drilling Delivers 7.9 meters of 19 g/t Au & 44 g/t Ag and 9 meters of 8.4 g/t Au & 53 g/t Ag at Cerro Blanco
Momentum Public Relations
Press Release: July 3, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce additional high-grade drill assays from its ongoing infill resource conversion program at its Cerro Blanco Gold project.
The Cerro Blanco Feasibility Study (see press release January 29th, 2019) highlighted 357,000 ounces of Inferred Resources (1.4 Mt grading 8.1 g/t Au) that could be potentially converted to Measured and Indicated Resources through infill drilling. The focus of the current program is the conversion of Inferred Resources within key veins in the upper part of the Cerro Blanco ore body and vein extensions outside of the current resource.
A total of eight holes are reported in this press release and 47 holes have been reported to date, for 4,992 meters of infill drilling undertaken since the Feasibility Study.
Table 1. Significant Intercepts (this Press Release)
HOLE ID
|
FROM (m)
|
TO (m)
|
CORE INTERVAL (m)
|
TRUE WIDTH (m)
|
Au g/t
|
Ag g/t
|
Vein ID
|
UGCB19-137
|
6.3
|
7.4
|
1.1
|
1.1
|
5.4
|
6.3
|
VN_29_New
|
49.2
|
50.3
|
1.1
|
1.1
|
12.7
|
12.0
|
VN_18
|
|
UGCB19-138
|
18.6
|
19.6
|
1.0
|
1.0
|
3.9
|
6.6
|
VN_20
|
37.5
|
38.5
|
1.0
|
1.0
|
4.9
|
34.1
|
VN_18
|
|
112.3
|
113.3
|
1.0
|
1.0
|
7.9
|
81.9
|
VN_02
|
|
121.2
|
122.2
|
1.0
|
1.0
|
5.6
|
45.4
|
VN_05
|
|
128.6
|
129.7
|
1.1
|
1.0
|
7.8
|
71.4
|
VN_06
|
|
UGCB19-139
|
32.6
|
34.9
|
2.3
|
2.0
|
8.1
|
24.1
|
VS_31
|
50.6
|
51.5
|
0.9
|
0.9
|
6.0
|
22.3
|
–
|
|
94.8
|
95.7
|
0.9
|
0.9
|
4.7
|
19.6
|
VS_24
|
|
97.8
|
99.0
|
1.2
|
1.0
|
5.3
|
21.6
|
VS_24
|
|
105.5
|
106.7
|
1.2
|
1.2
|
4.0
|
10.5
|
–
|
|
UGCB19-140
|
14.2
|
15.2
|
1.0
|
1.0
|
4.5
|
33.5
|
VN_29_New
|
29.0
|
30.0
|
1.0
|
1.0
|
11.7
|
29.0
|
VN_01
|
|
75.0
|
76.0
|
1.4
|
1.4
|
7.4
|
19.1
|
VN_18
|
|
UGCB19-141
|
38.0
|
39.0
|
1.0
|
1.0
|
3.8
|
9.9
|
VN_18
|
120.2
|
121.7
|
1.5
|
1.5
|
26.8
|
189.0
|
VN_02
|
|
UGCB19-142
|
8.0
|
9.0
|
1.0
|
1.0
|
4.1
|
21.5
|
VN_29_New
|
UGCB19-143
|
2.4
|
3.7
|
1.2
|
1.2
|
7.4
|
23.2
|
VS_20
|
6.3
|
7.3
|
1.0
|
1.0
|
6.7
|
32.6
|
VS_20
|
|
10.9
|
12.0
|
1.1
|
1.1
|
12.6
|
24.5
|
VS_15
|
|
57.0
|
66.0
|
9.0
|
9.0
|
8.4
|
53.2
|
VS_07, 08
|
|
incl.
|
57.9
|
59.7
|
1.8
|
1.8
|
24.9
|
134.8
|
VS_08
|
67.8
|
68.8
|
1.0
|
1.0
|
4.8
|
43.3
|
VS_06
|
|
74.5
|
75.6
|
1.1
|
1.1
|
91.7
|
561.0
|
VS_06
|
|
150.0
|
152.8
|
2.8
|
2.8
|
8.2
|
57.1
|
Vein New
|
|
185.4
|
187.9
|
2.5
|
2.5
|
13.6
|
52.8
|
Vein New
|
|
UGCB19-144
|
4.2
|
5.2
|
1.0
|
1.0
|
5.4
|
7.5
|
VN_27_New
|
89.3
|
95.8
|
6.5
|
6.1
|
4.0
|
3.5
|
VN_02, 03, 05
|
|
98.8
|
106.7
|
7.9
|
7.5
|
19.0
|
44.3
|
VN_06, 07, 09
|
|
incl.
|
105.7
|
106.7
|
1.0
|
1.0
|
98.5
|
271.0
|
VN_09
|
112.3
|
113.9
|
1.6
|
1.6
|
75.1
|
56.2
|
VN_10
|
|
126.2
|
136.0
|
9.8
|
9.4
|
7.2
|
8.7
|
VN_11
|
|
144.4
|
146.9
|
2.5
|
2.3
|
64.3
|
159.3
|
VN_12
|
|
155.1
|
156.0
|
0.8
|
0.8
|
9.1
|
5.9
|
Vein New
|
|
159.9
|
160.9
|
1.1
|
1.1
|
6.9
|
5.8
|
VN_21
|
Notes: Intervals in bold are cited in the text of the press release. Only intercepts averaging over 3 g/t Au when diluted to a minimum 3 meters true width are stated. Hole coordinates and azimuth/dip information accompany the plan view attached to this release.
Darren Klinck, President & CEO commented, “The drilling program which has been focused on the North zone at Cerro Blanco over the past few months has demonstrated remarkable continuity and consistency intercepting targeted veins. Additionally, as can be common with these types of deposits, the program continues to identify new veins that will require follow-up and should ultimately be positive for future resource updates. We are very excited with the results to date as well as with the continued strengthening of our understanding on the geologic model which we believe will continue to add significant value to the project.”
All holes cited in this press release were drilled from various platforms located within the underground workings at Cerro Blanco that extend over three kilometers. All holes were designed to target Inferred Resources within the upper parts of the current resource, with all holes drilled in the North Zone with the exception of UGCB19-139 and UGCB19-143 which were collared in the South Zone.
Hole UGCB19-144 drilled in the southern part of the North Zone resource successfully intercepted a total of 12 veins including a new vein, VN_19. The best intercept was 19 g/t Au and 44 g/t Ag over 7.5 meters (true width) pertaining to veins VS_06, VS_07 and VS_09, including 1 meter grading 98.5 g/t Au and 271 g/t Ag. Holes UGCB19-137, UGCB19-140, UGCB19-142 were all drilled west from the main North Ramp decline and were successful in intercepting new veins VN_18 and VN_29 located in the footwall of the current resource. UGCB19-138 and UGCB19-141 were drilled at positive angles (35 and 50 degrees respectively) and successfully confirmed the extension of vein VN_02 into the overlying Salinas conglomerates.
Hole UGCB19-143 drilled in the South Zone assayed 8.4 g/t Au and 53.2 g/t Ag over 9 meters (true width) from 57 meters pertaining to vein VS_07 and VS_08.
A plan view showing drill hole locations can be accessed by clicking HERE.
Results for a total of 47 holes have now been released to date as part of the Infill resource conversion program. Drilling is ongoing and further results will be reported in due course.
Precious metal mineralization at Cerro Blanco is associated with classic low sulphidation adularia-sericite epithermal quartz veins and vein swarms hosted in altered sequence of volcanoclastic and sedimentary rocks. Higher grades (>20 g/t Au and >60 g/t Ag) are associated with visible gold and silver sulphides in ginguro-style colloform-banded veins.
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, 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 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 technical information set out above in this news release is accurate and therefore approves this written disclosure of the technical information.
Investor Relations Services
As part of Bluestone’s capital markets initiatives planned throughout the year, the Company has retained PI Financial Corp. (“PI”) to provide market-making services in accordance with TSX Venture Exchange (“TSXV”) policies. In consideration of the services provided by PI, Bluestone will pay PI a monthly cash fee of $5,000. PI will not receive shares or options as compensation; however, PI and its clients may have or may acquire a direct interest in the securities of Bluestone. Bluestone and PI are unrelated and unaffiliated entities. PI is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and can access all Canadian stock exchange and alternative trading systems. The capital and securities required for any trade undertaken by PI as principal will be provided by PI.
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. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). 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”
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
- Published in Bluestone Resources, Mining, News Home
Drilling at Cerro Blanco Delivers 5.5 meters of 12.5 g/t Au and 30 g/t Ag, and 6.5 meters of 10.5 g/t Au and 18 g/t Ag
Momentum Public Relations
Press Release: May 2, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce high-grade intercepts from an additional five infill drill holes at its Cerro Blanco Gold project. The primary focus of the program is to upgrade Inferred Resources identified during the previous drill program completed in 2018. In addition, this program is also designed to define new resources along known veins in the mine plan that extend outside of the current resource envelope.
David Cass, Vice President of Exploration commented, “Our drilling in the North Zone at Cerro Blanco continues to return more high-grade intercepts that further refine our resource model and improve the definition of the epithermal veins by systematic infill drilling from within the underground workings.”
Two LM-75 diamond drill rigs are currently situated within the Cerro Blanco underground workings and one rig is drilling from surface, targeting key veins in the upper portion of the Cerro Blanco resource. The Cerro Blanco Feasibility Study (see press release January 29th, 2019) highlighted some 357,000 ounces of Inferred Resources (1.4 Mt grading 8.1 g/t Au) that could be potentially converted to Measured and Indicated Resources through infill drilling.
Table 1. Significant Intercepts (this Press Release)
HOLE ID | FROM (m) |
TO (m) | CORE INTERVAL (m) |
TRUE WIDTH (m) |
Au g/t | Ag g/t | Vein ID |
UGCB19-127 | 84.7 | 88.6 | 3.9 | 3.9 | 14.7 | 31 | VN_05 |
95.3 | 100.9 | 5.5 | 5.4 | 12.5 | 29.8 | VN_06 | |
including | 96.1 | 96.8 | 0.7 | 0.7 | 57.2 | 78.3 | |
107.9 | 109.6 | 1.8 | 1.8 | 29.5 | 109 | VN_07 | |
113.6 | 114.6 | 1.0 | 1.0 | 5.5 | 13.1 | VN_07 | |
UGCB19-128 | 50.3 | 51.3 | 1.0 | 1.0 | 5.7 | 52.2 | VN_01 |
UGCB19-129 | 2.4 | 6.7 | 4.3 | 4.1 | 7.7 | 16.9 | VN_07 |
8.8 | 9.8 | 1.0 | 1.0 | 7.9 | 9.7 | – | |
18.7 | 23.5 | 4.8 | 4.7 | 6.0 | 36.2 | VN_09, VN_10 | |
27.1 | 28.4 | 1.3 | 1.3 | 12.6 | 86.8 | VN_11 | |
52.6 | 55.2 | 2.6 | 2.6 | 5.6 | 16.3 | VN_22 | |
63.3 | 64.4 | 1.1 | 1.1 | 6.1 | 17.1 | VN_13 | |
66.5 | 67.5 | 1.0 | 1.0 | 4.5 | 11.6 | VN_14 | |
UGCB19-130 | 28 | 29.3 | 1.2 | 1.2 | 8.1 | 7.3 | VN_01 |
UGCB19-131 | 2.5 | 9.0 | 6.5 | 6.3 | 10.5 | 18.5 | VN_03, VN_05 |
Notes: Intervals in bold are cited in the text of the news release. Only intercepts averaging over 3 g/t Au when diluted to a minimum 3 meters true width are stated. Hole coordinates and azimuth/dip information accompany the plan view attached to this release.
All holes cited in this press release were drilled from various platforms located in the North Ramp of the Cerro Blanco underground workings. Holes were drilled at sub-horizonal to positive angles (upwards) and designed to target Inferred Resources within key veins and their extensions within the upper parts of the North Ramp orebody, with all predicted veins successfully intercepted. A plan view showing drill hole locations, sections and core photos can be accessed by clicking HERE.
Results for a total of 34 holes have now been released to date as part of the Infill Resource conversion program. Drilling is ongoing and further results will be reported as received.
Precious metal mineralization at Cerro Blanco is associated with classic low sulphidation adularia-sericite epithermal quartz veins and vein swarms hosted in altered sequence of volcanoclastic and sedimentary rocks. Higher grades (>20 g/t Au and >60 g/t Ag) are normally associated with visible gold and silver sulphides in ginguro-style colloform-banded veins.
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, 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 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 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. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). 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”
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
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 conversion of the inferred mineral resources; increasing the amount of measured mineral and indicated mineral resources; the proposed timeline and benefits of further drilling; the proposed timeline and benefits of the Feasibility Study; 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 relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; 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; 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.
Non-IFRS Financial Performance Measures
The Company has included certain non-International Financial Reporting Standards (“IFRS“) measures in this new 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.
Total cash costs
Total cash costs is a common financial performance measure in the gold mining industry but has no standard meaning. The Company reports total cash costs on a gold ounce sold basis. The Company believes that, in addition to measures prepared in accordance with IFRS, such as revenue, certain investors can use this information to evaluate the Company’s performance and ability to generate operating earnings and cash flow from its mining operations. Management uses this metric as an important tool to monitor operating cost performance.
Total cash costs include (cost of sales such as mining, processing, maintenance and site administration, royalties, selling costs and by-product credits) to arrive at total cash costs per ounce of gold sold. Other companies may calculate this measure differently.
AISC and total cash costs reconciliation
ASIC and total cash 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/44478
- Published in Bluestone Resources, Mining, News Home
Bluestone Resources’ Cerro Blanco project Delivers 10.2 meters of 13.1 g/t Au and 25 g/t Ag on Resource Upgrading Drilling Program
Momentum Public Relations
Press Release: April 3, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce additional high-grade intercepts from the resource upgrading infill drill program at its Cerro Blanco Gold project. The primary focus of the program is to upgrade Inferred Resources identified during the previous drill program completed in 2018. In addition, this program is also designed to define new resources along known veins in the mine plan that extend outside of the current resource envelope.
Three LM-75 diamond drill rigs are currently situated within the Cerro Blanco underground workings and are targeting key veins in the upper portion of the Cerro Blanco resource. The Cerro Blanco Feasibility Study (see press release January 29th, 2019) highlighted some 357,000 ounces of Inferred Resources (1.4 Mt grading 8.1 g/t Au) that could be potentially converted to Measured and Indicated Resources through infill drilling.
Darren Klinck, President and CEO, commented, “Of special note are the broad zones of high-grade mineralization drilled in several different holes. For example, 8.1 meters at 8.3 g/t Au and 73 g/t Ag(Hole UGCB18-122), 5.6 meters at 19.9 g/t Au and 281 g/t Ag (UGCB18-124) and 10.2 meters at 13.1 g/t Au and 25 g/t Ag (Hole UGCB18-126). These wider intercepts comprising multiple closely-spaced vein sets are reminiscent to those drilled in the lower parts of the South Zone orebody by Bluestone last year and were demonstrated in the Feasibility Study as amenable to long-hole stoping mining methods and key drivers in the project economics.”
Table 1. Significant Intercepts (this Press Release)
HOLE ID | FROM (m) | TO (m) | CORE INT. (m) |
TRUE WIDTH (m) |
Au g/t | Ag g/t | Vein ID |
UGCB19-120 | 62.0 98.9 110.0 119.5 126.2 140.0 |
63.5 101.3 112.9 120.5 127.2 141.6 |
1.5 2.3 2.9 1.0 1.0 1.6 |
1.5 2.3 2.8 1.0 1.0 1.6 |
6.1 16.6 8.5 3.6 3.9 4.5 |
1.0 109.0 123.0 34.0 50.0 36.0 |
– VN_02 VN_03 VN_05 VN_06 VN_11 |
UGCB19-121 | 5.0 63.6 75.4 84.3 95.1 104.1 |
6.0 64.6 78.4 92.4 96.3 108.4 |
1.0 1.0 3.0 8.1 1.2 4.3 |
1.0 1.0 3.0 8.1 1.2 4.2 |
5.7 15.9 4.9 8.3 9.4 6.9 |
13.0 126.0 41.0 73.0 177.0 74.0 |
VN_18 VN_01 VN_02 VN_03, 05, 06 VN_06 VN_07 |
UGCB19-123 | 56.7 61.4 70.9 82.1 |
57.9 62.8 74.1 83.1 |
1.2 1.4 3.2 1.0 |
1.2 1.4 3.1 1.0 |
14.8 7.9 5.3 6.9 |
130 82 67 88 |
VN_01 – VN_02, 03 VN_05 |
UGCB19-124
including
|
62.3 76.6 79.8 96.9 114.8 |
64.3 82.2 80.8 98.3 117.8 |
2.0 5.6 1.0 1.4 3.0 |
2.0 5.6 1.0 1.4 3.0 |
8.0 19.9 80.1 17.7 3.9 |
51.0 281.0 1,257.0 72.0 28.0 |
VN_01 VN_03, 05 VN_03 VN_07 VN_11 |
UGCB19-125 | 1.2 16.5 22.3 31.1 |
10.8 19.1 27.2 33.2 |
9.6 2.6 4.9 2.1 |
9.4 2.5 4.9 2.0 |
5.3 5.0 12.3 33.6 |
10.0 36.0 44.0 239.0 |
VN_07 VN_09 VN_10 VN_11 |
UGCB19-126
including
|
0.0 8.9 13.4 32.2 33.2 52.0 58.0 71.7 |
6.0 9.9 14.5 43.0 35.9 53.0 59.2 72.7 |
6.0 1.0 1.2 10.8 2.7 1.0 1.2 1.0 |
5.7 1.0 1.2 10.2 2.3 1.0 1.2 1.0 |
10.0 4.0 11.9 13.1 31.0 5.3 24.3 10.2 |
16.0 26.0 14.0 25.0 32.4 8.0 56.2 15.0 |
VN_06 – – VN_09,10 VN_09 – VN_11 VN_22 |
Notes: Intervals in bold are cited in the text of the news release. Only intercepts averaging over 3 g/t Au when diluted to a minimum 3 meters true width are stated. Hole coordinates and azimuth/dip information accompany the plan view attached to this release.
All holes cited in this press release were drilled from various platforms in the North Zone underground workings. Except for hole UGCB18-126, all holes were drilled at positive (upward) angles and designed to test the Inferred Resource portions of several key veins that sit above the current underground infrastructure. Hole UGCB18-126 was a sub-horizonal hole drilled at -5 degrees. A plan view showing drill hole locations, sections, and core photos can be accessed by clicking HERE. All holes intercepted their predicted targets, including Hole UGCB18-122, which drilled veins of lower grade and widths due to their proximity or emplacement within the Salinas Unit, a silicified conglomerate that forms a cap over the deposit.
Results for a total of 29 holes have been released to date as part of the Infill resource conversion program (3,384 meters). Drilling is ongoing and further results will be reported as received.
Precious metal mineralization at Cerro Blanco is associated with classic low sulphidation adularia-sericite epithermal quartz veins and vein swarms hosted in altered sequence of volcanoclastic and sedimentary rocks. Higher grades (>20 g/t Au and >60 g/t Ag) are normally associated with visible gold and silver sulphides in ginguro-style colloform-banded veins.
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, 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 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 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. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). 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”
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
- Published in Bluestone Resources, Gold, Mining, News Home
Step-Out Drill Hole Intercepts 201.4 g/t Au and 2,139 g/t Ag Over 1 meter at Cerro Blanco – 20 meters Outside of Current Resource Envelope
Momentum Public Relations
Press Release: March 21, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce additional high-grade intercepts from the infill resource drill program at its Cerro Blanco Gold Project. The primary focus of the program is to upgrade Inferred Resources identified during the previous drill program completed in 2018. In addition, this program is designed to define new resources along known veins in the mine plan that extend outside of the current resource envelope.
The Cerro Blanco Feasibility Study (see press release January 29th, 2019) highlighted some 360,000 ounces of Inferred Resources that could be potentially converted to Measured and Indicated Resources through infill drilling. Two LM-75 diamond drill rigs are currently situated within the North Zone of the Cerro Blanco underground workings and are targeting key veins in the upper part of the Cerro Blanco resource.
David Cass, Bluestone’s Vice President of Exploration, stated, “Results from our drilling continue to validate our belief in the exploration and growth potential of Cerro Blanco. Of special note is that the 201 g/t Au high-grade assay intercepted in drill hole UGCB19-119 is approximately 20 meters outside the current resource model and is a good example of the potential to define additional resources by drill definition of the extensions to known veins, in addition to the conversion of the Inferred Resources. Additionally, new parallel structures not yet classified as in the above table and therefore not included in the current resource model represent further potential.”
Table 1. Significant Intercepts (this Press Release)
HOLE ID
|
FROM
|
TO
|
CORE INT.
|
TRUE WIDTH
|
Au g/t
|
Ag g/t
|
Vein ID
|
UGCB19-116
|
14.9
|
15.8
|
0.9
|
0.9
|
13.1
|
29
|
–
|
21.6
|
22.6
|
1.0
|
1.0
|
7.2
|
7
|
–
|
|
58.9
|
60.3
|
1.4
|
1.4
|
18.0
|
27
|
VN_02
|
|
UGCB19-117
|
44.1
|
44.7
|
0.6
|
0.6
|
4.8
|
21
|
VN_02
|
50.9
|
51.9
|
1.0
|
1.0
|
6.6
|
60
|
VN_03
|
|
UGCB19-118
|
45.3
|
48.8
|
3.5
|
3.5
|
8.5
|
7
|
–
|
79.0
|
80.0
|
1.0
|
1.0
|
5.6
|
11
|
VN_01
|
|
82.6
|
83.6
|
1.0
|
1.0
|
3.7
|
6
|
–
|
|
UGCB19-119
|
38.7
|
39.7
|
1.0
|
1.0
|
4.3
|
28
|
VN_02
|
42.7
|
45.1
|
2.4
|
2.4
|
86.1
|
963
|
VN_03
|
|
including
|
42.7
|
44.1
|
1.4
|
1.4
|
4.8
|
135
|
“
|
and
|
44.1
|
45.1
|
1.0
|
1.0
|
201.4
|
2,139
|
“
|
Notes: Intervals in bold are cited in the text of the news release. Hole coordinates and azimuth/dip information accompany the plan view attached to this release.
Drill holes UGCB18-116, 117 and 119 were all drilled at positive angles from Platform 04-N in the North Ramp to target veins VN_01, VN_02 and VN_03 in the upper parts of the Cerro Blanco deposit. Drill hole UGCB18-118 was drilled from Platform 01-N also within the North Ramp of the underground workings and designed to intercept VN_02 at depth, a primary vein with a total of 46,800 ounces in the Inferred Resource category as per the current resource estimate (154,500 tonnes grading 9.4 g/t Au).
Hole UGCB18-119 intercepted vein VN_03 as anticipated which assayed 86.1 g/t Au and 963 g/t Ag over 2.4 meters, which included a one-meter interval that assayed 201.4 g/t Au and 2,139 g/t Ag(229 g/t Au Eq.*, true width) representing some of the highest grades encountered in the infill drill program to date. At Cerro Blanco, exceptionally high grades are characteristically associated with fine colloform-banded quartz-adularia veins with silver sulphides as ginguro bands along with visible gold and electrum. Of special note is that this intercept is approximately 20 meters outside the current resource model and is a good example of the potential to add resources by drill definition of the extensions to known veins, in addition to the conversion of Inferred Resources. Additionally, new parallel structures not yet classified as in the above table and therefore not included in the current resource model represent further potential.
Drilling is ongoing and further results will be reported as received. A plan view showing drill hole locations, sections, and core photos can be accessed by clicking HERE.
*Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 78 and assumes 100% metal recoveries.
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, 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 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 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. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). 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”
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
- Published in Bluestone Resources, Mining, News Home
Bluestone Closes Upsized $22 Million Bought Deal Financing
Momentum Public Relations
Press Release: March 19, 2019
Bluestone Resources Inc. (TSXV: BSR) (OTCQB: BBSRF) (“Bluestone” or the “Company”) is pleased to announce that that it has closed its previously announced increased bought deal financing (the “Offering”). The Offering was comprised of 12,800,000 units of the Company (the “Units”) at C$1.25 per Unit as well as an over-allotment of 5,141,321 Units for total gross proceeds of C$22,426,651.
Each Unit consisted of one common share of the Company (each, a “Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder to acquire one Share for 24 months from the closing of the Offering at a price of C$1.65.
The Units issued pursuant to the Offering are subject to a statutory hold period in Canada expiring on July 20, 2019.
The Company plans to use the net proceeds from the Offering towards advancing the Company’s Cerro Blanco Gold project and for general corporate purposes.
The Offering was made through a syndicate of underwriters led by Cormark Securities Inc. and included Haywood Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., and PI Financial Corp. (collectively, the “Underwriters”). The Corporation paid to the Underwriters a cash commission equal to 6.0% of the aggregate gross proceeds of the Offering and a reduced a cash commission of 3.0% on Units sold to certain insiders of the Company (collectively, the “Underwriting Fee”). The Company paid no Underwriting Fee to the Underwriters on orders from certain retail groups designated by the Company.
Insiders of the Company purchased an aggregate of 6,164,221 Units pursuant to the Offering. Zebra Holdings and Investments S.à.r.l (“Zebra”), CD Capital Natural Resources Fund III LP (“CD”) and Lorito Holdings S.à.r.l (“Lorito” and together with Zebra and CD, the “Significant Shareholders”), held 23.70%, 16.71% and 12.53%, respectively, of the issued and outstanding common shares in the capital of the Company, on a non-diluted basis, prior to the closing of the Offering. Pursuant to the Offering, Zebra subscribed for 2,845,262 Shares, CD subscribed for 1,320,000 Shares and Lorito subscribed for 1,503,959 Shares. Following completion of the Offering, Zebra, CD and Lorito hold 17,976,262, 11,986,333 and 9,501,959 Shares, respectively, representing 21.98%, 14.65% and 11.62%, respectively, of the issued and outstanding Shares. The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation. The Company did not file a material change report 21 days prior to closing of the Offering as the participation of insiders of the Company in the Offering had not been confirmed at that time.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the Unites States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
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. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). 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“
Darren Klinck | President, Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604 646 4534
info@bluestoneresources.ca
www.bluestoneresources.ca
- Published in Bluestone Resources, Mining, News Home
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