Bluestone’s Cerro Blanco produce over 300,000 gold oz. a year at its peak

Recent results of a preliminary economic assessment for Bluestone Resources’ (TSXV: BSR) Cerro Blanco project in Guatemala show a doubling of the gold resource ounces and production profile, which effectively triples the NPV (net present value estimate) of the project, at a 5% discount rate, to US$907 million. According to Bluestone, the recent completion of advanced engineering and optimization work has significantly enhanced the understanding of the project and presented an opportunity to capitalize on its near-surface, high-grade mineralization through an open-pit development scenario. The PEA, thus, forecasts peak production of 334,000 oz. and average annual production of 231,000 oz. of gold over the life of mine. Total life of mine production is expected to be approximately 2.4 million oz. of gold and 10.3 million oz. of silver over an initial 11-year mine life. Measured and indicated resources have been estimated at 3 million oz. of gold and 13.2 million oz. of silver or 61.5 million tonnes at 1.5 g/t gold and 6.7 g/t silver. The assessment also predicts average life of mine all-in sustaining costs of US$642 per oz., average annual free cash flow of US$186 million per year and life-of-mine total free cash flow of US$2 billion, as well as a net present value estimate of US$907 million, on an after-tax basis and using a 5% discount rate. “This new development scenario outlines a great project which is capable of producing over 300,000 oz. of gold per year at first-decile AISC (all-in sustaining costs). With the onboarding of key project personnel and completion of a successful drill campaign, 2020 presented us with the opportunity to dig deep into the technical and social elements of the project and evaluate all aspects,” Jack Lundin, the Canadian company’s CEO, said in a media statement. Cerro Blanco is in southeastern Guatemala, approximately nine km west of the border with El Salvador. The nearest town to the project is Asuncion Mita, a community of about 20,000 people approximately 10 km from the project. This story first appeared on www.MINING.com.