Bluestone Resources Inc. (TSX-V: BSR) (OTCQB: BBSRF) today announced initial assays from the ongoing 3,500 meter infill drilling program currently underway at its high-grade Cerro Blanco Gold project. The primary focus of the program is to upgrade the Inferred resources identified during the drill program completed last year and to define new resources along veins in the mine plan that extend outside of the current resource envelope.

In addition, a new mineralized vein was drilled in hole UGCB18-101 that assayed 2.7 meters of 12.6 g/t Au. This new vein is in the North Zone and was drilled underground from the positive ramp.

Two LM-75 drill rigs are situated within the North Zone of the Cerro Blanco underground workings and are targeting specific areas of veins in the upper part of the Cerro Blanco resource that can be converted to the Indicated resource category by infill drilling. Additionally, certain veins with Indicated resources are expected to be upgraded into Measured resources where drill density is sufficient.

“Initial results from this program validate our belief in the exploration and growth potential of Cerro Blanco, advance our near-term goal of upgrading and converting resources from Inferred resources into Indicated resources, and potentially add new ounces outside of the area hosting the current resource estimate,” stated Darren Klinck, Bluestone’s President and CEO. “The resource estimate announced in September 2018 defined 360,000 ounces in the Inferred resource category^[1]. The conversion of a large portion of these ounces into the Indicated resource category represents a significant opportunity to add value to the economics of the project. The majority of the current Inferred resource ounces are located on veins which already demonstrate Measured and Indicated resources with adequate grades and widths for mining. These Inferred resources are to be incorporated into a mine plan once upgraded. The current program is intended to provide the greater drilling density required to upgrade these resources to Measured and Indicated resource status.”

Table 1. Significant Intercepts

Notes: Intervals in bold are cited in the text of the news release. Only intercepts averaging over 3 g/t Au when diluted to a minimum 3 meters true width are stated. A complete table with hole coordinates and azimuth/dip information accompany the plan view attached to this release. No grade capping was applied (highest assay 104 g/t Au, 2nd highest 39.3 g/t Au)

Hole CB-409 was drilled from surface (Figure 3) with a principal objective of intercepting an Inferred resource portion of Vein VN_10, which contains a total of 32,215 ounces in the Inferred resource category (87,367 tonnes grading 11.5 g/t Au at a 3.5 g/t Au cut-off) as per the current resource estimate, effective date August 6, 2018 as per the press release dated September 11, 2018. The target was intercepted as anticipated 226 meters down hole and assayed 3.0 meters of 16.3 g/t Au and 15.1 g/t Ag, some 62 meters down dip of its exposure within the North Ramp underground workings, where four 1.0-meter channel samples taken across the vein averaged 34.5 g/t Au. The hole intersected all other adjacent veins as expected including a new extension of Vein VN_07 which extends this structure some 52 meters down dip.

Holes UGCB18-100 and UGCB18-101 were drilled from the underground workings (Figures 4 & 5) with the objective of infill drilling Vein VN_02, a primary vein with a total of 46,800 ounces in the Inferred resource category (154,500 tonnes grading 9.4 g/t Au) as per the current resource estimate, effective date August 6, 2018 as per the press release dated September 11, 2018. The target was intercepted in both holes as anticipated. Importantly, UGCB18-100 intersected extensions of veins VN_01, VN_03, and VN_05 that are outside of the current resource envelope which could potentially add new resources in the future.

A plan view showing drill hole locations and cross sections can be accessed by clicking HERE.

Quality Analysis and Quality Control

Assay results listed within this release were performed by Inspectorate Laboratories, 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 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 scientific and technical information set out above in this news release is accurate and therefore approves this written disclosure of the scientific and 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 Gold Project, as disclosed in the Company’s Cerro Blanco Preliminary Economic Assessment which is available at www.sedar.com, returned robust economics with a quick pay back and all-in sustaining cash costs (as defined per World Gold Council guidelines, less corporate general and administration costs) in the first quartile.