Bluestone Resources Inc. (TSX-V: BSR) (OTCQB: BBSRF) is pleased to announce additional underground sampling results from its Cerro Blanco Gold project in Guatemala. Bonanza grade gold and silver mineralization at Cerro Blanco is associated with epithermal quartz-adularia veins and vein swarms that sit immediately below a silicified cap that forms a low-lying hill.

The sampling is being undertaken in conjunction with a 10,000-meter resource definition drill program and will be incorporated into the Feasibility Study expected to be completed by the end of the year. A total of five drill rigs are currently operating at Cerro Blanco, three rigs are carrying out resource definition within the three kilometers of underground development, while two drill rigs are operating from surface targeting deeper and peripheral extensions to the known veins. Assay results received for initial drill holes are being compiled, with results to be announced shortly.

The assay results reported in this press release are additional to the underground sample results reported previously (see Company press release dated January 23, 2018). Samples were taken from vein exposures within the underground development comprising the North and South Ramps. The average grade of the 205 samples was 10.8 g/t Au and 32.2 g/t Ag, ranging from trace to 276.9 g/t Au and up to 752.0 g/t Ag; 42% of the samples (86) averaged over 5.0 g/t Au, and 27% of the samples (56) averaged greater than 10.0 g/t Au.

Sample highlights are shown in the table below. Maps and sections showing location of the samples can be viewed by clicking this link HERE.

The underground sampling program continues to be successful in identifying high-grade veins both within and outside of the current PEA resource envelope and is playing a key role in the definition of veins that will be incorporated into an updated resource estimate planned for mid-year.

Darren Klinck, President and CEO commented, “The ongoing sampling program from our underground development continues to provide very exciting results. These results are proving extremely valuable in validating the geological model from the previous surface drilling, and importantly, have been instrumental for our geology team to firm up our confidence in the main mineralizing structures and identify new veins not previously recognized or included in the model.” Mr. Klinck added, “Having more than three kilometers of underground development is now providing us with great access for the underground drilling program, and we expect to start seeing results from this program in the near future.”

Table 1 Sampling Highlights

The sampling program is ongoing and will also assist in trial mining, metallurgical, and dilution studies as part of the Feasibility Study. Results for approximately 80 additional underground channel samples are pending.

Samples were taken with a portable diamond rock saw as continuous channels approximately two inches wide and one inch deep, following industry best practice. Individual sample widths generally averaged one meter, wider veins and sheeted vein swarms include several samples taken over the total mineralized width. Sampling includes ten centimeters of hanging wall and footwall dilution.

About Cerro Blanco

Cerro Blanco is a classic “bonanza style” hot springs-related, low sulphidation gold-silver deposit. Mineralization occurs within composite veins of chalcedony, quartz, adularia and calcite which are hosted in altered sequence of volcanoclastic and sedimentary rocks. The current resource has a footprint of 800 meters x 400 meters between elevations of 300 meters and 500 meters above sea level. It occurs at the south end of a north-south corridor of hydrothermal alteration, about five kilometers long and one kilometer wide, which has potential for discovery of additional mineralization. This corridor has several other gold targets currently under investigation. The current resource comprises both high and low angle veins of colloform banded chalcedony with minor adularia, dark grey bands of silver sulphides and bladed calcite replacement textures. These textures are all classic indicators of boiling fluids that deposited gold and silver.

Quality Analysis and Quality Control

Assay results listed within this release were performed by Inspectorate Laboratories (“Inspectorate”), a division of Bureau Veritas, which are ISO 17025 accredited laboratories. Logging and sampling is undertaken at 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 adsorption and/or gravimetric finish for values exceeding 3 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 sent to ALS Chemex Laboratories in Vancouver for check analyses and additional quality control.

Qualified Person

David Cass, P.Geo., Vice President Exploration, is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 and has reviewed and verified that the technical information set out above in this news release is accurate and therefore approves this written disclosure of the technical information.

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.