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