September 21, 2020 – VANCOUVER, BRITISH COLUMBIA – Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company") is pleased to report additional high grade drill assays received from its infill drilling activities currently underway at the Cerro Blanco gold project. After a brief hiatus where the drilling activities were suspended to comply with COVID-19 related restrictions in Guatemala, a total of five drill rigs are now operational, located in the underground workings and on surface.
Results from six underground and four surface holes are reported in this press release. Highlights include the following intercepts representing true widths of the veins:
- 15 g/t Au and 55 g/t Ag over 7.2 meters (UGCB20-174)
- 210 g/t Au (6.8 oz/t) and 167 g/t Ag over 1.0 meter (CBUG20-177)
- 24 g/t Au and 22 g/t Ag over 2.3 meters (CBUG20-177)
- 5 g/t Au and 11 g/t Ag over 12.3 meters (CBUG20-423)
- 20 g/t Au and 16 g/t Ag over 2.1 meters (CB20-425)
- 12 g/t Au and 26 g/t Ag over 6.0 meters (CB20-425)
Jack Lundin, CEO, commented, “Exciting intercepts continue to be delivered through our ongoing drilling campaign which is focused on infill drilling and resource expansion at Cerro Blanco. Our strong understanding of the geology and consistency of the drilling results continue to demonstrate further upside in the deposit. In addition to the drilling, great progress continues to be made on advancing Cerro Blanco towards project readiness activities which are set to commence before the end of this year.”
Following the Guatemalan Government’s recommendations and guidelines for COVID-19, the Company continues to follow measures to protect and prioritize the well-being of employees, contractors, their families, and the communities in which it operates. Despite a temporary hiatus due to the pandemic, the Company was able to add two additional drill rigs in June and July.
The focus of the current drill program is infill drilling in the South Zone and the improved definition of key veins in parallel to testing vein extensions outside of the current resource envelope. The work is expected to build on the infill drill program completed in the North Zone of the deposit in 2019 which resulted in an updated resource estimate of 1.41 million ounces of gold averaging 10.3 g/t in Measured and Indicated Resources (see Press Release dated November 6, 2019).
Table 1. Drill Intercepts (this Press Release)
| HOLE ID | FROM (m) | TO (m) | CORE
INTERVAL (m) | TRUE
WIDTH (m) | Au g/t | Ag g/t | Vein ID / Comments |
| UGCB20-170 | | | | | | | NSR |
| UGCB20-171 | 47.3 | 48.3 | 1.0 | 1.0 | 3.5 | 1.4 | N |
| UGCB20-172 | 8.3 | 9.3 | 1.0 | 1.0 | 5.7 | 17.9 | - |
| UGCB20-173 | | | | | | | NSR |
| UGCB20-174 | 3.1 | 4.7 | 1.7 | 1.7 | 3.1 | 26.5 | S |
| | 19.7 | 21.3 | 1.6 | 1.5 | 4.9 | 21.0 | VS_30 |
| | 120.83 | 128.2 | 7.4 | 7.2 | 14.9 | 54.9 | VS_01, VS_21 |
| UGCB20-177 | 20.1 | 21.3 | 1.3 | 1.3 | 10.8 | 53.0 | VS_30 |
| | 118.3 | 120.4 | 2.1 | 2.0 | 12.0 | 241.4 | VS_18 ext |
| | 148.62 | 150.73 | 2.1 | 2.0 | 25.1 | 27.4 | VS_21 (split) |
| | 155 | 156 | 1.0 | 1.0 | 210.3 | 167.0 | VS_21 (split) |
| | 159 | 160.11 | 1.1 | 1.1 | 8.3 | 10.8 | S |
| | 162.7 | 163.7 | 1.0 | 1.0 | 7.5 | 8.3 | S |
| | 171.67 | 174.03 | 2.4 | 2.3 | 24.3 | 22.4 | VS_01 |
| | 177.29 | 179.36 | 2.1 | 2.1 | 11.6 | 12.2 | S |
| CB20-421 | | | | | | | NSR |
| CB20-422 | | | | | | | NSR |
| CB20-423 | 93.37 | 94.4 | 1.0 | 1.0 | 7.2 | 25.3 | S |
| | 100.5 | 105.77 | 5.3 | 5.1 | 5.1 | 30.2 | VS_22 |
| | 156.83 | 159 | 2.2 | 2.2 | 7.3 | 15.5 | VS_14 |
| | 168.55 | 180.95 | 12.4 | 12.3 | 4.9 | 11.4 | VS_07, 08, 10 |
| | 186.84 | 188.27 | 1.4 | 1.4 | 12.6 | 170.0 | VS_06 |
| | 192 | 193.12 | 1.1 | 1.1 | 5.3 | 4.8 | VS_06 |
| CB20-425 | 124.97 | 129.32 | 4.3 | 4.1 | 11.9 | 20.6 | VS_22 |
| | 140.86 | 141.86 | 1.0 | 1.0 | 18.5 | 20.7 | S |
| | 163.37 | 164.9 | 1.5 | 1.5 | 3.7 | 4.9 | VS_14 Ext |
| | 170.4 | 172.52 | 2.1 | 2.1 | 20.0 | 15.7 | VS_10 Ext |
| | 183.59 | 184.71 | 1.1 | 1.1 | 6.7 | 5.9 | VS_07 Ext |
| | 188.88 | 189.88 | 1.0 | 1.0 | 5.7 | 6.4 | N |
| | 198.07 | 204.09 | 6.0 | 5.8 | 12.0 | 25.8 | VS_06 |
| | 208.95 | 209.95 | 1.0 | 1.0 | 7.5 | 9.7 | VS_06 |
NSR – No significant results; Ext - vein extension; S - splay; N - New or un-modelled vein. Hole coordinates and azimuth/dip information are included in Figure 1 on the link below. Intervals in bold are cited in the text of this press release.
Drill hole plans and sections can be accessed by clicking HERE. Core photos can be accessed by clicking HERE.
Drilling Summary
Drill holes CB20-423 and CB20-425 were drilled from surface to both infill and test extensions to several veins in the north-eastern part of the South Zone resource including VS_10. Hole CB20-425 was successful in drilling extensions to veins VS_07, VS_10 and VS_14, including 2.1 meters grading 20 g/t Au (VS_10). This hole was an additional step out hole to CB20-420 (see press release dated June 9, 2020) and now extends Vein VS_10 to approximately 50 meters outside of the current resource envelope (Figure 5). In both holes, target vein VS_22 was intersected as predicted.
Holes UGCB20-174 and UGCB20-177 were infill holes drilled to test the central portion of the ore body including infill drilling of vein VS_101. All targets were successfully intercepted including a high-grade interval of 210 g/t Au and 167 g/t Ag (VS-21) over 1.0 meter and 2.3 meters grading 24.3 g/t Au (VS_101, Figure 2, 3).
Holes UGCB20-170 to 173, CB20-421 and 422, all tested the upper extensions of VS_101 close to the contact with the overlying Salinas unit or within the Salinas unit itself (Figure 2). All holes intercepted only minor veins and stockworks assaying generally low values (0.5-1.2 g./t Au) concurrent with the geological model where the majority of veins dissipate or terminate in proximity to the Mita/Salinas contact.
Precious metal mineralization at Cerro Blanco is associated with classic low sulphidation epithermal quartz-adularia veins and vein swarms hosted in altered sequence of volcanoclastic and sedimentary rocks. Higher grades (>20 g/t Au and >60 g/t Ag) are associated with visible gold and silver sulphides in ginguro-style colloform-banded veins.
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 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 Labs in Managua, Nicaragua for sample preparation. Sample pulps are then shipped to Inspectorate Laboratories in 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 technical information.