Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) has received promising results of the Feasibility Study for the Cerro Blanco Gold Project in Guatemala.
President and CEO, Jack Lundin, said the Study demonstrates a robust, rapid pay-back, high-grade operation at a first quartile all-in sustaining cost (AISC).
“The Feasibility Study highlights some of the best economics for a gold project seen in recent studies and is a major milestone on the path to the development of the Cerro Blanco mine, providing a blueprint for the detailed engineering phase and construction of the Project,” Mr Lundin said.
“Sustainable environmental management is a key aspect incorporated into the design of the Project, including a modern dry stack filtered tailings facility and water treatment plant. Our corporate strategy aligns with our philosophy of responsible development prioritising local training and hiring to maximize opportunities and benefits for our local stakeholders.
Advancing the Cerro Blanco Project represents a tremendous opportunity to our many stakeholder groups including the local Guatemalan communities, government partners, and our shareholders.”
Feasibility Study Highlights
The base case was completed at a gold price of US$1,600/oz and a silver price of US$20/oz.
- Life of mine (LOM) production of approximately 2.6 million ounces of gold and 10.6 million ounces of silver over an initial 14-year mine life.
- Peak production of 347,000 ounces and average annual production of 241,000 ounces gold over the first ten years of operation.
- Average life of mine AISC of US$629/oz (net of credits).
- Average annual free cash flow of US$228 million per year during the first 10 years and life of mine total free cash flow of US$2.350 billion.
- Net present value (NPV5%) of US$1.047 billion after-tax.
- After-tax internal rate of return (IRR) of 30%.
- Initial capital of $572 million with an after-tax payback period of 2.2 years.
- Proven & Probable Reserves of 2.8 million ounces of gold and 12.6 million ounces of silver (53.9 million tonnes at 1.6 g/t Au and 7.3 g/t Ag).
- At spot gold and silver prices (US$1,897/oz and US$23.94/oz), the NPV5% increases to US$1.563 billion and the IRR to 40% with a payback of 1.7 years.
“The Study confirms Cerro Blanco as an exceptional open pit development opportunity. In the first four years of production, the mill feed grades will average 2.5 g/t gold and the open pit mine will produce approximately 300,000 oz gold per year,” Mr Lundin added.
“With all-in sustaining costs at $629/oz and over 2.6 million ounces to be produced over the life of the mine, the low-cost, robust nature of the deposit will generate significant free cash flow, making Cerro Blanco a rare development opportunity in the gold space today.”
Study Details
Bluestone engaged a consortium of independent consultants, led by G Mining Services, a specialized mining consultancy firm that provides a wide range of services to mining projects from greenfield to operating mines.
The Feasibility Study was supported by additional leading consultants with expertise in various fields, including Kirkham Geosystems Ltd., NewFields, ERM, and Stantec Inc.
The Feasibility Study evaluates recovery of gold and silver from an open pit operation and a 4.0 Mtpa conventional process plant that will include crushing, grinding, and agitated leaching followed by a carbon-in-pulp recovery process to produce doré bars.
For further information please visit: https://bluestoneresources.ca/
