Bluestone Announces Management Changes
December 6, 2022 – VANCOUVER, BRITISH COLUMBIA – Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company") is pleased to announce the following executive appointments, effective immediately. Peter Hemstead will join the Board of Directors and assume the role of President and CEO of the Company, while Nevin Lau will become the CFO.
Former President and CEO, Jack Lundin, will remain as a Director of the Company. However, due to his expanding role within the Lundin Group he will step down from his daily management responsibilities at Bluestone.
Jack Lundin, Director, commented, “As the largest shareholder, the Lundin Family will remain committed to Bluestone Resources. The Cerro Blanco Gold Project represents a meaningful value creation opportunity for the Company and for Guatemala. Peter and Nevin were two of the first Bluestone employees with the acquisition of the Project and have been instrumental in advancing Cerro Blanco through Feasibility and into permitting. I would like to thank them both for their continued commitment to the Company and look forward to supporting as a Director of Bluestone, a company with significant upside potential.”
Hemstead, President and CEO, commented, “I am looking forward to leading the Bluestone team and appreciate the continued support from the Lundin Family to advance the Cerro Blanco project. Cerro Blanco is one of the highest-grade undeveloped gold projects in the world and is capable of producing over 300,000 oz/yr at first quartile all-in sustaining costs. Over the next six months, the focus will be on obtaining the approval of the open pit permit amendment and building on the Project’s social acceptance. Recently, both the Guatemalan Ministry of Environment and the Ministry of Energy and Mines conducted technical site trips as part of the approval process, which is very encouraging.”
Peter Hemstead, CPA, CMA
Mr. Hemstead has been with the Company since the acquisition of the asset in 2017, as the CFO, where he successfully advanced the Project through feasibility studies and project financing initiatives. He has over 25 years of finance experience with the last 16 years spent in senior financial executive roles in the mining industry, including 10 years at Capstone Mining Corp., leading the finance team through the successful expansion from a development stage mining company to an intermediate producer.
Nevin Lau, CPA, CA
Mr. Lau has been promoted to CFO of the Company, from his former role as the Company’s Corporate Controller. Mr. Lau has been with the Company since 2017. He has over 14 years of accounting and finance experience, mostly in the mining industry. Prior to joining Bluestone, Mr. Lau was at SSR Mining and Ernst & Young. Mr. Lau is a Chartered Professional Accountant (CA) and holds a Bachelor of Business Administration degree from Simon Fraser University.
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.
Peter Hemstead | Chief Executive Officer & Director
For further information, please contact:
Bluestone Resources Inc.
Stephen Williams | VP Corporate Development & Investor Relations
Phone: +1 604-757-5559
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 use of proceeds from the Loan; final approval of the TSX Venture Exchange; the estimated gold production volume per year from the Project; life of mine gold production amounts; average all-in sustaining costs (“AISC”); and length of initial mine life.
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; 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, 2020, 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 a non-Generally Accepted Accounting Principles (“GAAP”) measure in this news release that is not defined under International Financial Reporting Standards (“IFRS”), being AISC per payable ounce of gold sold. 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.
All-in sustaining costs
The Company believes that 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 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.