VANCOUVER, British Columbia, Sept. 18, 2017 (GLOBE NEWSWIRE) -- Bluestone Resources Inc. (TSX VENTURE:BSR) ("Bluestone" or the "Company") today announced its Board of Directors has approved the commencement of the Feasibility Study (the "Feasibility Study") on the Company's Cerro Blanco Project located in Guatemala.
Earlier this year, in conjunction with the acquisition of the project from Goldcorp, the Company released a Preliminary Economic Assessment (“PEA”) on Cerro Blanco that indicated a robust project generating an after tax internal rate of return of 43.9% and an NPV of US$317 million using US$1,250 per ounce of gold.
Following the positive findings from the PEA, Bluestone’s Board of Directors has elected to advance directly to a Feasibility Study that is expected to be completed by the end of 2018. The Feasibility Study will be led by JDS Energy & Mining Inc. ("JDS") and contributed to by Hatch Ltd., Kirkham Geosystems Ltd., Knight Piésold Ltd. and Stantec Inc.
Appointment of Technical Advisor
The Company is pleased to announce the appointment of A.L (Alf) Hills as a Technical Advisor to assist the Company with oversight on the Feasibility Study. Alf will lead the Technical Advisory Committee that will be established over the coming months to assist Bluestone management throughout the feasibility study process in evaluation and review of key aspects of the program.
Mr. Hills is registered as a Professional Engineer in the Province of British Columbia and holds a degree in Mining and Mineral Process Engineering with over 40 years of international mine evaluation, development, start-up operating, general management and board experience. Mr. Hills spent 26 years of his career with Placer Dome Inc, where he held a number of positions including Vice President Evaluations, Mine General Manager at Placer’s Australian Kidston Gold Mine and in Papua New Guinea in various construction, start-up and operating positions. Mr. Hills also participated in developing the CIM Best Practice guidelines for Mineral Resource and Mineral Reserve Estimation and was a corporate member of the SME Resources and Reserve Committee.
Darren Klinck, President and Chief Executive Officer, commented, "We are pleased to be launching the Cerro Blanco feasibility study which is an important next step as we further evaluate the opportunities for this high-grade, small footprint underground gold project.” Mr. Klinck also added, “We are very fortunate to have someone with the depth of global experience that Alf Hills has to join Bluestone in an advisory capacity. Alf will play an important role as we establish the Technical Advisory Committee and work closely with Bluestone and JDS as the study advances.”
About Bluestone Resources
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 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 indicates 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.
