September 5, 2018 – VANCOUVER, BRITISH COLUMBIA – Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company") is pleased to provide the following corporate update on the recent progress of the Company.
A Feasibility Study led by JDS Energy & Mining Inc. was initiated on the Cerro Blanco Gold project in late 2017 and is well advanced. Shortly after commencing the Feasibility Study, Bluestone management assembled a Technical Advisory Committee (“TAC”) to act as a peer review over key technical aspects of the study as it progresses. Bluestone was very fortunate to establish a group of internationally recognized technical experts who have been engaged with management and the JDS area leads over the past nine months on the Feasibility Study. Chaired by Alf Hills, the additional TAC members are Scott Donald (Hydrology), Allan Moss (Mining), Roger Nendick (Processing and Infrastructure), Robert Sim (Resource Estimation), and Dr. Ward Wilson (Waste Management).
A comprehensive review of the geology and structural controls of the deposit was completed as a basis for an updated resource estimate. This program entailed the re-logging of drill core and detailed surface and underground structural mapping led by UK-based consultants, Specialised Geological Mapping Ltd. This work resulted in a better understanding of the deposit and has been a key foundation in the development of the vein models and guiding infill drilling and exploration for new high-grade veins. Preliminary geology domain and vein wireframes are complete and have validated the work of the structural study. Final models will be adjusted with surface and underground drilling and sample results as part of the updated resource estimate expected imminently.
An infill drill program was completed by Bluestone that focused on under-drilled areas and new targets adjacent to the resource envelope. The program was successful in refining the resource model that is nearing completion. A total of approximately 11,000 meters was drilled from both surface and from the 3.2 km of underground workings at Cerro Blanco, representing the first drilling on the project since 2012.
Generative exploration work continues and a detailed exploration, mapping, and targeting exercise was carried out to identify high priority exploration drill targets outside the current high-grade deposit footprint. An initial drill program on some of these targets recently commenced.
Mobile underground mining equipment was acquired from the Marlin mine and has been utilized for underground mining and development activities associated with the underground exploration program. Additionally, 12 MW of CAT generators and associated transformers and switch gear were purchased and delivered to site for future use.
Flow testing of select geothermal wells was completed at the Mita Geothermal project. Equipment was installed onsite and four geothermal wells were tested for power generation capabilities. Multiple wells were flow tested for extended durations. The data collected fed into a new reservoir calculation that is expected to demonstrate an economic geothermal resource, as well as an estimated power generation capacity for a potential first phase project. Further drilling and follow up on the deeper reservoir, projected beneath the Mita geothermal concession, could have the potential to increase the projected power generation capabilities in the future.
Further studies are ongoing in this area in conjunction with synergies from the Cerro Blanco Gold project. Bluestone envisions a staged approach, with Phase 1 being a smaller operation that could supplement power requirements to the mine or be sold into the privatized national grid. A larger development could then be examined in the future as a Phase 2.
Several initiatives establishing business processes in human resources, risk management, and health and safety commenced as part of preparations for advancement beyond completion of the Feasibility Study. In addition to working with expert consultants and non-government organizations to enhance and broaden our stakeholder management and engagement priorities, Bluestone is pleased to have commenced work with local and international industry-leading partners to help bolster the Company’s capacity. The Company undertook an exercise to engage the workforce in Guatemala and in Canada to establish a vision, mission, and corporate values. This initiative was very well received and has formed an important part of the fabric of our values-based organization.
As part of the Company’s capital markets initiatives, the Company’s common shares were listed on the OTCQB Venture under the symbol "BBSRF" and are DTC eligible. This is consistent with the goal of increasing the liquidity and convenience of trading within the U.S. market place. Additionally, Bluestone now has six brokerage firms providing research coverage on the Company demonstrating the quality of the assets and confidence in the strategy at Bluestone.
Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100%-owned Cerro Blanco Gold and Mita Geothermal projects located in Guatemala. The Cerro Blanco Gold project economics, as disclosed in the Company's Cerro Blanco Preliminary Economic Assessment which is available at www.sedar.com, and updated mineral resource estimate for Cerro Blanco, indicate a robust project with an expected nine-year mine life producing 952,000 ounces of gold and 3,141,000 ounces of silver. Initial capital expenditures estimated in the PEA to fund construction and commissioning is estimated at US$170.8 million with all-in sustaining cash costs (as defined per World Gold Council guidelines, less corporate general and administration costs) estimated to be US$490 per ounce of gold produced. The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.