VANCOUVER, BC, Sept. 19,
2022 /CNW/ - Bluestone Resources Inc. (TSXV:
BSR) (OTCQB: BBSRF) ("Bluestone" or the "Company") is
focused on the development of the Cerro Blanco Gold Project. A
recently completed Feasibility Study (see press release
February 22, 2022) demonstrated a
robust, rapid pay-back, high-grade operation that will produce 2.6
million ounces of gold over the life of mine at a first quartile
all-in sustaining cost.
Bluestone has made significant progress in advancing the Cerro
Blanco Project and as a result has drawn attention from certain
anti-mining groups, that are known in the region for spreading
misinformation on the impacts of development projects, such as
Cerro Blanco. The Company is aware
of a referendum that was held yesterday in the Municipality of
Asuncion Mita that was organized by
anti-mining advocates.
These anti-mining groups formed a biased commission (the
"Commission") to organize a referendum that unfairly
portrayed public opinion on future mining activities within the
municipal limits.
The Commission responsible for the vote is fully comprised of
individuals with an anti-mining agenda. During the referendum
process several biased and illegal activities were observed.
Bluestone has been advised by its legal counsel that the referendum
will not be legally binding. Furthermore, a legal injunction was
filed against the referendum and a Judge in department of Jutiapa,
where the project is located, ruled that it be suspended.
Regardless of this ruling, the Commission holding the illegitimate
vote continued to proceed against the orders of the court. Due to
the injunction against the vote, the Company did not actively
participate.
The referendum is against the recommendations of the Central
Government, no entity other than the relevant federal governmental
agencies have the legal jurisdiction over mining licenses in
Guatemala. The governing electoral
body of Guatemala (Supreme
Electoral Tribunal) has refused to participate and has even refused
to provide a registered list of voters.
Furthermore, it is believed that voting results contained a
number of votes from unregistered individuals residing outside of
the area of influence. Additionally, the Commission that was
comprised of individuals with anti-mining agendas was responsible
for counting the votes. International accepted standards for a vote
of this nature were not followed or considered. The results reflect
an outcome that is not transparent or in line with the Company's
understanding of the sentiment towards the project.
Jack Lundin, President and CEO,
commented "This referendum is clearly unconstitutional and filled
with irregularities. We are disappointed with the actions of these
groups who use these biased referendums to create doubt and
uncertainty around responsible mining projects such as Cerro Blanco. Our goal is to continue to develop
Cerro Blanco and provide
socioeconomic benefits that transform communities through
employment and economic opportunity, while operating in an
environmentally safe and socially responsible manner. We at
Bluestone, do not believe the results of this referendum reflect
the overall community sentiment towards the project."
The Company will provide further information on this matter as
it becomes available.
About Bluestone Resources
Bluestone Resources is a Canadian-based precious metals
exploration and development company focused on opportunities in
Guatemala. The Company's flagship
asset is the Cerro Blanco Gold Project, a near surface mine
development project located in Southern
Guatemala in the department of Jutiapa. The Company released
the results of a Feasibility Study for the Project, outlining an
asset capable of producing over 300 koz/yr at head grades of +2.0
g/t gold. The Project will produce 2.6 million ounces of gold over
the life of mine at an all-in sustaining cost of $629/oz (as defined per World Gold Council
guidelines, less corporate general and administration costs) over
an initial 14-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
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
anticipated approval of an environmental permit amendment by the
end of the year and expected project timelines; expectations
relating to social acceptance of the Cerro Blanco Project (the
"Project") and the nature of community opposition; the Company's
intention to hire and train local employees and the initiation of
training programs; the Project's expected economic benefits to
Guatemala; the expected timing of
the completion of offsite infrastructure and potential benefits;
and the estimated value of the Project.. 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:
risks related to increasing community opposition to the Project and
its effect on permitting and Project timelines; 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; changes in Project
parameters as plans continue to be refined; title matters; 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; risks related
to Project working conditions, accidents or labour disputes; 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 and grade 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 commodity prices and
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, 2021, 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-GAAP Financial Performance Measures
The Company has included certain non-Generally Accepted
Accounting Principles ("GAAP") measures in this news release that
are not defined under International Financial Reporting Standards
("IFRS"), including cash costs and AISC per payable ounce of gold
sold and per tonne processed. Non-GAAP measures do not have any
standardized meaning prescribed under IFRS and, therefore, they may
not be comparable to similar measures employed by other companies.
The Company believes that these measures, in addition to measures
prepared in accordance with GAAP, 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-
GAAP 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 GAAP. These
measures do not have any standardized meaning prescribed under
GAAP, and therefore may not be comparable to similar measures
presented by other issuers.
Cash costs
Cash operating costs and cash operating costs per ounce sold are
non-IFRS financial measures and ratios. In the gold mining
industry, these metrics are common performance measures but do not
have any standardized meaning under IFRS. The Company follows the
recommendations of the Gold Institute Production Cost Standard. The
Gold Institute, which ceased operations in 2002, was a
non-regulatory body and represented a global group of producers of
gold and gold products. The production cost standard developed by
the Gold Institute remains the generally accepted standard of
reporting cash operating costs of production by gold mining
companies. Cash operating costs include mine site operating costs
such as mining, processing and administration, but exclude royalty
expenses, depreciation and depletion, share based payment expenses
and reclamation costs. Revenue from sales of by-products including
silver, lead and zinc reduce cash operating costs. Cash operating
costs per ounce sold is based on ounces sold and is calculated by
dividing cash operating costs by volume of gold ounces sold. The
most directly comparable measure prepared in accordance with IFRS
is production costs. Cash operating costs and cash operating costs
per ounce of gold sold should not be considered in isolation or as
a substitute for measures prepared in accordance with IFRS.
Net free cash flow
The Company calculates net free cash flow by deducting cash
capital spending from net cash provided by operating activities.
The Company believes that this measure provides valuable assistance
to investors and analysts in evaluating the Company's ability to
generate cash flow after capital investments and build the cash
resources of the Company. The most directly comparable measure
prepared in accordance with IFRS is net cash provided by operating
activities less net cash used in investing activities.
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.