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Bluestone Provides Update on Exploration Activity at Cerro Blanco Gold Project

Bluestone Resources Inc. is pleased to announce an exploration activity update from the Cerro Blanco gold project in Guatemala.

Exploration activities incorporates three key areas: 1) Cerro Blanco deposit; 2) Cerro Blanco project area; and 3) Structural Geology.  

Bluestone's President & CEO Darren Klinck commented, "We are pleased to have a number of exploration initiatives underway at Cerro Blanco. This work represents the first geological related work on the project in more than four years and will form important contributions to the Feasibility Study as well as our objective to identify near-term opportunities for resource expansion.”

Cerro Blanco Deposit

An analysis of the current resource model by Garth Kirkham, P.Geo. of Kirkham Geosystems Ltd. (as per February 7, 2017 BSR press release) has identified several priority target areas. These represent areas that are under-drilled and are either adjacent to, or exist as targets, within the resource envelope. The Company is proposing an initial Phase 1 drill program that will consist of more than 5,000 meters of diamond drilling, and is expected to commence in October 2017 to test these targets, expand resources, and increase confidence and continuity.

In addition, an underground channel sampling program commenced in July. Work to-date from this program confirms the veins observed are consistent with the resource model which has been based on surface drill results previously completed by Goldcorp. The mapping and sampling has also identified several new mineralized structures which are not currently included in the resource model. More than 280 channel samples have been collected from targeted areas within the three kilometres of the underground workings at Cerro Blanco. Sampling is still underway and a full complement of results are expected to be received in the coming weeks. This program represents the first physical geological work done on the project in more than four years.

Cerro Blanco Project Area

A reconnaissance program has been initiated targeting untested structures outside of the known limits of the current resource. Multi auriferous anomalies defined by historical geophysical, geochemical data and drill data have identified mineralized corridors that range between 150 and 500 meters which is consistent with the mineralized envelopes at Cerro Blanco. The initial program will assess the larger scale potential of the land package through a combination of systematic grid-based soil sampling,  geological  mapping  and  prospecting,  augmented  by  the geophysical data. This systematic form of exploration is planned to cover the prospective tenements package. Figure 1 below displays the interpreted geological setting of the project area along with five target areas recently identified outlined in yellow.

A photo accompanying this press release is available here:

Structural Geology

The Company has engaged Warren Pratt, Ph.D. from SGM Ltd. to conduct a structural review of the Cerro Blanco project. Work commenced in July and is expected to continue for the coming months. The objective of the work program is to conduct a full structural analysis of the Cerro Blanco project. Data from the structural geology work will be directly applied to the Feasibility Study already underway in the areas of ore-reserve estimation, geotechnical, mine planning and water management. In addition, this information will be a valuable guide for exploration activities in the broader Cerro Blanco project area as well as further enhancing our understanding of the Mita geothermal project. Work underway has consisted of core relogging and underground structural mapping. This has highlighted several folds, which are now believed to be  important controls for mineralization. Ongoing work is targeted at creating wireframes of individual veins and vein zones to constrain resource calculations.

About Specialised Geological Mapping Ltd (SGM)

SGM Principal, Dr. Warren Pratt, has a PhD in Structural Geology from the University College of Wales and brings extensive worldwide experience in a great variety of geological terrains, including epithermal systems. Dr. Pratt is fluent in Spanish and has a strong mapping background, including a decade of British Geological Survey training. In 1994 he won the President’s Award of the Geological Society of London for detailed thematic mapping. Since 1995 he has worked extensively in Au, Ag and Cu exploration, including consulting on World Class mineral deposits (e.g. Navidad, Argentina; Kupol, Russia; Ventana Gold, Colombia).

Qualified Persons

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 (“NI43-101”) and reviewed and approved by David R. Gunning, P. Eng., Vice President of Operations, and a Qualified Person.

Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd. is the Qualified Person, as defined in National Instrument 43-101, responsible for the geological information as reported herein.  He has read and approved the relevant technical portions of this news release.


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