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