News

Bluestone Clarifies Technical Disclosure on the Cerro Blanco Gold Project

September 11, 2018 – VANCOUVER, BRITISH COLUMBIA – Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company") at the request of IIROC, wishes to clarify certain disclosure in its September 10, 2018 news release titled “Bluestone Increases Mineral Resources at the Cerro Blanco Gold Project.” The news release included disclosure relating to the “High-Grade Resource Estimate” and the “Bulk Tonnage Resource Estimate”. It should be noted that the Bulk Tonnage Resource Estimate previously disclosed includes the high-grade veins, the low-grade envelopes surrounding the high-grade veins and the low grade disseminated mineralization hosted in the overlying Salinas rocks. Please refer to the sensitivity table below for a complete breakdown of the resource estimate. All numbers that were presented in the September 10, 2018 press release remain unchanged.

The Feasibility Study currently underway will be focused on the development of an underground operation that incorporates the resource estimate at a base case cut-off of 3.5 g/t Au.

Table 1. Cerro Blanco Resource Estimate at a 3.5 g/t Au cut-off

Resource Category Tonnes Au Grade
(g/t)
Ag Grade
(g/t)
Contained
Gold (Oz)
Contained Silver (Oz)
Measured 290,153 10.3 39.1 96,184 365,106
Indicated 3,426,400 10.0 37.8 1,105,284 4,163,517
Measured & Indicated 3,717,630 10.1 37.9 1,201,468 4,528,623
Inferred 1,373,342 8.1 23.6 357,319 1,041,057

At a cut-off of 0.5 g/t Au, the estimate encompasses the high-grade veins, the low-grade envelopes surrounding the high-grade veins and the low grade disseminated mineralization hosted in the overlying Salinas rocks and demonstrates a future opportunity should a mining method from surface ever be considered.

The table below highlights the resource estimate at various cut-off grades; at a cut-off greater than or equal to 2.5 g/t Au, a potential underground mining scenario was envisioned. Below a 2.5 g/t cut-off a mining scenario from surface was modelled. For further disclosure on methodologies please refer to the press release dated September 10, 2018.

Table 2. Cerro Blanco Resource Estimate Sensitivity Analysis at various cut-off grades

Resource Category Cut-off (Au g/t) Tonnes Grade Grade Contained Contained Silver (oz)
(Au g/t) (Ag g/t) Gold (oz.)
Measured  4.50 256,120 11.2 41.9 91,818 344,792
4.00 273,088 10.7 40.5 94,127 355,112
3.50 290,153 10.3 39.1 96,184 365,106
3.00 311,428 9.8 37.7 98,418 377,083
2.50 330,897 9.4 36.3 100,136 386,001
1.00 8,060,330 3.1 14.8 808,974 3,832,761
0.75 9,843,460 2.7 13 858,595 4,120,496
0.50 12,367,710 2.3 11.2 908,666 4,433,584
0.35 14,836,990 2 9.8 942,162 4,665,255
Indicated 4.50 2,869,052 11.2 41.8 1,033,519 3,855,243
4.00 3,153,354 10.6 39.7 1,072,425 4,020,255
3.50 3,426,400 10 37.8 1,105,284 4,163,517
3.00 3,717,657 9.5 36 1,135,710 4,299,893
2.50 4,059,253 8.9 34 1,165,936 4,435,694
1.00 20,705,683 2.2 8.7 1,460,951 5,791,613
0.75 30,452,071 1.8 7.4 1,731,167 7,235,224
0.50 48,219,063 1.3 6.1 2,080,783 9,379,180
0.35 68,384,028 1.1 5.1 2,350,959 11,256,811
4.50 3,125,172 11.2 41.8 1,125,337 4,200,035
4.00 3,426,442 10.6 39.8 1,166,552 4,375,367
Measured & Indicated 3.50 3,716,553 10.1 37.9 1,201,468 4,528,623
3.00 4,029,085 9.5 36.1 1,234,128 4,676,976
2.50 4,390,150 8.9 34.2 1,266,072 4,821,695
1.00 28,766,013 2.5 10.4 2,269,925 9,624,374
0.75 40,295,531 2 8.8 2,589,762 11,355,720
0.50 60,586,773 1.5 7.1 2,989,449 13,812,764
0.35 83,221,018 1.3 5.9 3,293,121 15,922,066
4.50 1,030,148 9.5 26.5 313,466 876,157
4.00 1,193,186 8.8 25 335,831 959,253
 Inferred 3.50 1,373,342 8.1 23.6 357,319 1,041,057
3.00 1,584,186 7.5 22.1 379,432 1,123,287
2.50 1,860,278 6.8 20.2 403,450 1,209,679
1.00 4,605,668 1.9 7.6 279,567 1,126,855
0.75 8,298,464 1.4 6.1 382,247 1,632,826
0.50 18,531,439 1 5 581,679 3,002,828
0.35 24,518,492 0.8 4.6 662,004 3,610,356
  • Effective date: August 6, 2018. All Mineral Resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”) definitions, as required under NI 43-101. Mineral Resource Statement prepared by Garth Kirkham (Kirkham Geosystems Ltd.) in accordance with NI 43-101.
  • Mineral Resources reported demonstrate reasonable prospect of eventual economic extraction, as required under NI 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The Mineral Resources may be materially affected by environmental, permitting, legal, marketing, and other relevant issues.
  • Cut-off grades are based on a price of US$1,250/oz gold, US$16/oz silver, and a number of operating cost and recovery assumptions, including a reasonable contingency factor.
  • Ounce (troy) = metric tonnes x grade / 31.10348. All numbers have been rounded to reflect the relative accuracy of the estimate.

The Mineral Resource estimate for Cerro Blanco was prepared to industry standards and best practices using commercial mine modelling and geostatistical software. Garth Kirkham, P.Geo., is the Independent Qualified Person responsible for the Mineral Resource estimates for the purposes of NI 43-101. The geologic models and domains were completed under the supervision of Bluestone’s Vice President of Exploration David Cass, P.Geo., and Geology Manager Carlos Chiquin. The deposit was segregated into multiple estimation domains for the vein domains based on geologic and structural models with the Mineral Resources estimated using ordinary kriging interpolation of capped composites. Search ellipse orientation and anisotropy were based on structural and geological controls and variogram models.

Quality Analysis and Quality Control

Assay results included by reference 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 Persons

The Mineral Resource Estimates in this release were prepared in accordance with NI 43-101 by Garth Kirkham, P.Geo., a Qualified Person for NI 43-101. Mr. Kirkham is an employee of Kirkham Geosystems Ltd., and is an independent Qualified Person as defined by National Instrument 43-101.

The scientific information in this release was reviewed and approved by David Cass, P.Geo., Vice President Exploration for Bluestone.

The Qualified Persons have read and approved the information contained in this press release.

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

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 proposed timeline and benefits of the Feasibility Study; statements about the Company’s plans for its mineral properties; Bluestone’s business strategy, plans and outlook; the future financial or operating performance of Bluestone; capital expenditures, corporate general and administration expenses and exploration and development expenses; expected working capital requirements; the future financial estimates of the Cerro Blanco Project economics, including estimates of capital costs of constructing mine facilities and bringing a mine into production and of sustaining capital costs, estimates of operating costs and total costs, net present value and economic returns; proposed production timelines and rates; funding availability; resource estimates; and future exploration and operating plans are forward-looking statements. 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 the Company’s current beliefs as well as various assumptions made by them and information currently available to them.  Generally, these assumptions include, among others: the ability of Bluestone to carry on exploration and development activities; the price of gold, silver and other metals; there being no material variations in the current tax and regulatory environment; the exchange rates among the Canadian dollar, Guatemalan quetzal and the United States dollar remaining consistent with current levels; 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; 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 operation; the availability of acceptable financing; anticipated mining losses and dilution; success in realizing proposed operations; 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 the Company 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 and uncertainties related to expected production rates, timing and amount of production and total costs of production; risks and uncertainties related to ability to obtain 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 and uncertainties related to interruptions in production; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; uncertain political and economic environments and relationships with local communities; 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; risks related to fluctuations in currency exchange rates; as well as those factors discussed under “Risk Factors” in the Company’s Amended and Restated Annual Information Form.

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.