VANCOUVER, BC, April 13, 2021 /CNW/ - Bluestone
Resources Inc. (TSXV: BSR) (OTC: BBSRF) ("Bluestone" or the
"Company") is pleased to announce the Company has filed a
National Instrument 43-101 Technical Report – "Preliminary Economic
Assessment on the Cerro Blanco Project" which is available for
review under the Company's profile on SEDAR at www.sedar.com and on
the Company's website at www.bluestoneresources.ca.
The Technical Report was prepared by G Mining Services Inc. in
accordance with National Instrument 43-101 Standards of Disclosure
for Mineral Projects ("NI 43-101") and has an effective date of
February 28, 2021.
Preliminary Economic Assessment Highlights
The recent completion of advanced engineering and optimization
work significantly enhanced the understanding of the Cerro Blanco
Gold Project and presented an opportunity to capitalize on its
near-surface, high-grade mineralization through an open pit
development scenario. The optimized project doubles the gold
resource ounces and production profile which effectively triples
the NPV%5 of the project to $907
million. As reported in the press release dated February 28, 2021, highlights include:
- Peak production of 334,000 ounces and average annual production
of 231,000 ounces gold over the life of mine ("LOM").
- Average life of mine all-in sustaining costs ("AISC") of
$642/oz (net credits).
- Average annual free cash flow of $186
million per year and LOM total free cash flow of
$2 billion.
- Net present value ("NPV5%") of $907 million after-tax.
- After-tax internal rate of return ("IRR") of 28.5%.
- Initial capital of $548 million
with an after-tax payback period of 2.6 years.
- Life of mine production of approximately 2.4 million ounces of
gold and 10.3 million ounces of silver over an initial 11-year mine
life.
- Measured & Indicated Resources of 3.0 million ounces of
gold and 13.2 million ounces of silver (61.5 million tonnes at 1.5
g/t Au and 6.7 g/t Ag).
Unless otherwise indicated, all dollar amounts are stated in U.S
dollars ("$") at a gold price of $1,550/oz and a silver price of $20/oz.
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.
About Bluestone Resources
The Cerro Blanco Gold Project is an advanced stage near surface
development project. A PEA on the project highlighted an asset
capable of producing over 300 koz/yr with an average annual
production of 231 koz/yr at all-in sustaining costs of ~$642/oz (as defined per World Gold Council
guidelines, less corporate general and administration costs) over
an initial 11-year mine life. The Company trades under the symbol
"BSR" on the TSX Venture Exchange and "BBSRF" on the OTCQB.
On Behalf of Bluestone Resources Inc.
"Jack
Lundin"
Jack Lundin |
Chief Executive Officer & Director
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 estimated value of
the Cerro Blanco Project (the "Project"); the planned open pit
development scenario for the Project; the estimated gold production
volume per year from the Project; gold and silver price estimates
used in the preliminary economic assessment ("PEA"); additional
financial estimates of Project economics resulting from the PEA,
including peak and average annual gold productions amounts, average
all-in sustaining costs, average annual free cash flow, after-tax
net present value ("NPV"), after-tax internal rate of return,
initial capital requirements, life of mine gold and silver
production amounts, measured and indicated resources and NPV
assuming a higher gold price estimate; the Company's plan to
advance an EIA application in parallel to completing a bankable
Feasibility Study by the end of 2021; the Company's target to
initiate Project development in the second half of 2022;
anticipated receipt of an EIA permit in the second half of
2022; mineral resource estimates; the estimated tonne-per-day
recovery volume of the planned open pit operation; the planned
conventional process plant and associated processing methods; the
Company's goal to prepare a coordinated Environmental and Social
Impact Assessment document that aligns with the IFC Performance
Standards, Equator Principles as well as national requirements;
engagement with local communities and stakeholders to remain
on-going through the process; the Company's plan to advance the
development of the EIA document in 2021 for submittal prior to the
end of the year; the reasonable prospect of eventual economic
extraction demonstrated by reported mineral resources; gold and
silver price estimates and a reasonable contingency factor used as
the basis for mineral resource estimate cut-off grades; reasonable
expectation that the majority of Inferred Mineral Resources could
be upgraded to Indicated Mineral Resources with continued
exploration; results of mineral resource estimate sensitivity
analysis; uncertainty that the PEA will be realized; the potential
for subsequent assessment of mining, environmental, processing,
permitting, taxation, socio-economic and other factors to affect
mineral resources; estimated diluted mill feed to be processed over
the life of mine from the main pit area; planned trucking of mill
feed to a primary crushed located to the east of the main pit;
amount of waste to be stored in a dump adjacent to the main pit;
estimated open-pit mining dilution; measured and indicated mill
feed amounts; estimated process plant capacity in tonnes per day of
ore; planned processing rate measured in dry tonnes per year and
average feed grade thereof; details of planned processing,
including pre-oxidation, 48-hour leach and carbon-in-pulp
absorption circuit elements and expected gold and silver recovery
percentage to produce a dore; estimated initial capital required to
fund construction and commissioning; beneficial existence of a
significant amount of development already in place, a water
treatment plant, maintenance and warehouse facilities, offices and
communications; capital and operating cost estimates; estimated
all-in cash costs including sustaining capex; planned installation
of a new power transmission line as part of the construction of the
Project; the Project's expected economic benefits to Guatemala. 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 Bluestone's
current beliefs as well as various assumptions made by Bluestone
and information currently available to Bluestone. Generally, these
assumptions include, among others: 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; currency exchange
rates; 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
operations; the availability of acceptable financing; the impact of
the novel coronavirus (COVID-19); anticipated mining losses and
dilution; success in realizing proposed operations; and 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 Bluestone 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:
potential changes to the mining method and the current development
strategy; risks and uncertainties related to expected production
rates; timing and amount of production and total costs of
production; risks and uncertainties related to the ability to
obtain, amend, 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
related to global epidemics or pandemics and other health crises,
including the impact of the novel coronavirus (COVID-19); risks and
uncertainties related to interruptions in production; the
possibility that future exploration, development, or mining results
will not be consistent with Bluestone's expectations; uncertain
political and economic environments and relationships with local
communities and governmental authorities; risks relating to
variations in the mineral content within the mineral identified as
mineral resources from that predicted; variations in rates of
recovery and extraction; developments in world metals markets; and
risks related to fluctuations in currency exchange rates. For a
further discussion of risks relevant to Bluestone, see "Risk
Factors" in the Company's annual information form for the year
ended December 31, 2019, available on
the Company's SEDAR profile at www.sedar.com.
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 news 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.
AISC reconciliation
AISC and 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.
SOURCE Bluestone Resources Inc.