Bluestone Resources - Advancing a High-Grade Gold Project in Guatemala

• Bluestone Resources, a Guatemalan high-grade gold development company, is seeking funding.
• The company has shown progress over the last two years with the Cerro Blanco gold project, acquiring an asset that had been inactive for years.
• They aim to secure project financing in early 2022 and start production.
• The project is high-grade, set to generate 110,000 to 150,000 ounces of gold annually at a cost of $579 per ounce.
• Bluestone has explored both private equity and commercial bank financing, with strong interest due to the advanced and permitted nature of the asset.

About Bluestone Resources

Bluestone Resources is a mining development company focused on advancing its 100% owned Cerro Blanco gold project located in southeast Guatemala. The company acquired the project in 2017 and has since completed a feasibility study outlining an high-grade, low-cost mining operation. Bluestone is now focused on securing financing to begin construction and advance the project into production.

Interview with President & CEO Darren Klinck

Bluestone's Cerro Blanco: Among the Highest Grade Undeveloped Projects

The Cerro Blanco project is located just 30 kilometers from Guatemala City. With more than 200 million invested and 3.5 kilometers of underground development already completed, Cerro Blanco is an advanced and permitted project. As CEO Darren Klinck explains, "there's just not too many more high-grade sort of deposits being created by mother nature any more at least in our timelines."

With an average head grade of 10 grams per ton of gold, Cerro Blanco stands out as one of the highest grade undeveloped gold projects globally. The 2019 feasibility study outlines an open-pit mine producing 113,000 ounces of gold per year over an initial 8-year mine life at extremely low all-in sustaining costs of just $579/oz. With robust project economics including an IRR of over 50%, Cerro Blanco provides a fast-track opportunity into gold production.

Securing Financing to Move Into Construction

With the feasibility study complete and key permits in place, Bluestone has focused over the past year on securing financing to fund construction of the Cerro Blanco mine. The company has advanced discussions with commercial banks and expects to finalize a debt financing package in the range of $150-180 million over the coming months.

This project financing from commercial lenders provides a lower cost of capital compared to other options and validates the strength of the Cerro Blanco project. As CEO Darren Klinck explains, “getting the finance in place I think sends a big tick from the perspective that it’s you know it's a viable project that can be financeable."

With financing expected to be in place soon, Bluestone will move into full construction mode later this year. The focus over the next 6-8 months will be on detailed engineering, procurement of long-lead equipment, and pre-construction activities to prepare for a smooth build-out. First gold pour is targeted for early 2022.

Advancing Development and Exploration Upside

In addition to advancing permitting and financing over the past year, Bluestone has also been focused on infill drilling and underground development at Cerro Blanco. The aim is to convert a significant portion of the current inferred resources into the measured and indicated categories and incorporate these ounces into an updated mine plan. This could help extend the initial 8-year mine life outlined in the feasibility study.

Beyond Cerro Blanco, Bluestone also sees significant exploration potential within its 180,000 hectare land package elsewhere in Guatemala. CEO Darren Klinck sees the country as an under-explored region with strong mining infrastructure and a stable currency. While the focus remains on Cerro Blanco development in the near-term, Bluestone will look to unlock further value through targeted exploration to establish Guatemala as a long-term gold mining district.

Conclusion

With construction poised to start on one of the world's highest grade development projects, Bluestone offers investors an exciting gold mining opportunity. The experienced management team has a proven track record of taking projects from exploration into profitable production.

With permitting in place, Bluestone is on the verge of transiting from developer to miner as they finalize financing and enter full construction mode in the coming months. Investors have a rare opportunity to get in early on an emerging producer with near-term catalysts on the horizon.