During the quarter, environmental, forestry, and construction permits for the new bridge were received from the Guatemalan authorities. Construction of the bridge is underway with earthworks and pile installation nearing completion. The new bridge will be a significant improvement to the existing bridge and will ensure long-term access to the urban centre for communities within the surrounding area. Completion of the construction of the bridge is anticipated in the Fall of 2022.
Right of way negotiations for the transmission line continue and are progressing according to schedule.
The environmental permit amendment application was submitted to national authorities late last year. The amendment application is a comprehensive document that covers all aspects of the project in detail, building on the historical data and the previously approved 2007 EIA, to incorporate the new surface mining method. The Company has been monitoring progress with the relevant authorities and currently anticipates receiving the approval of the environmental permit amendment by the end of the year, followed by a construction licence and forestry permits.
Procurement activities have progressed, and firm pricing was received for major equipment such as the mining fleet, grinding mills, and filter presses. Pricing received to date has been in line with the capital estimates in the Feasibility Study. With the work achieved to date, the Company is positioned to initiate detailed engineering.
Bluestone has progressed project finance discussions with streamers, commercial banks, and private equity groups. Based on the initial indications that have been received, the availability of funding will be contingent on the approval of the environmental permit amendment. As a result, the Company will wait to receive the permit amendment before committing capital to long lead items, detailed engineering, and further training programs for the construction phase. Waiting for the approval of the environmental permit amendment will impact previously communicated timelines.
The Company will continue the development of the bridge and certain transmission line ROWs, to be shovel-ready when the permit amendment is approved.
Progress to date from an increase in site development activities has resulted in a rise in anti-mining activity, which is not uncommon in
The development of
- It is estimated that during production the mine will contribute about
$160 million annually and approximately$1.8 billion over the life of mine ("LOM") to the Guatemalan economy through direct employee wages, local purchasing, taxes, and royalties. - In taxes and royalties alone, the project is anticipated to generate payments to the Government of approximately
$300 million over the LOM. - During construction, direct employment including employees of the Company and contractors is estimated to peak at approximately 1,100 persons.
- During operations, direct employment including employees of the Company and contractors is estimated to range between 400 and 500 persons. In addition to direct employment, the project will generate several thousand indirect jobs to support the mine operations.
- The project will improve local and regional infrastructure through the development of a new access road and bridge.
The Company will be attending the PDAC convention in person in
Bluestone has received disinterested shareholder approval and
On Behalf of
"Jack Lundin"
www.bluestoneresources.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
This press release contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). All statements, other than statements of historical fact, that address activities, events, or developments that
All forward-looking statements are made based on Bluestone's current beliefs as well as various assumptions made by Bluestone and information currently available to Bluestone. Generally, these assumptions include, among others: the presence of and continuity of metals at the
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Bluestone to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Bluestone. Factors that could cause actual results or events to differ materially from current expectations include, among other things: risks related to increasing community opposition to the Project and its effect on permitting and Project timelines; potential changes to the mining method and the current development strategy; risks and uncertainties related to expected production rates; timing and amount of production and total costs of production; risks and uncertainties related to the ability to obtain, amend, or maintain necessary licenses, permits, or surface rights; risks associated with technical difficulties in connection with mining development activities; risks and uncertainties related to the accuracy of mineral resource estimates and estimates of future production, future cash flow, total costs of production, and diminishing quantities or grades of mineral resources; changes in Project parameters as plans continue to be refined; title matters; risks associated with geopolitical uncertainty and political and economic instability in
Any forward-looking statement speaks only as of the date on which it was made, and except as may be required by applicable securities laws, Bluestone disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or otherwise. Although Bluestone believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance, and accordingly, undue reliance should not be put on such statements due to their inherent uncertainty. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Non-GAAP Financial Performance Measures
The Company has included certain non-Generally Accepted Accounting Principles ("GAAP") measures in this news release that are not defined under International Financial Reporting Standards ("IFRS"), including cash costs and AISC per payable ounce of gold sold and per tonne processed. Non-GAAP measures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. The Company believes that these measures, in addition to measures prepared in accordance with GAAP, provide investors an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non- GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These measures do not have any standardized meaning prescribed under GAAP, and therefore may not be comparable to similar measures presented by other issuers.
Cash costs
Cash operating costs and cash operating costs per ounce sold are non-IFRS financial measures and ratios. In the gold mining industry, these metrics are common performance measures but do not have any standardized meaning under IFRS. The Company follows the recommendations of the Gold Institute Production Cost Standard.
Net free cash flow
The Company calculates net free cash flow by deducting cash capital spending from net cash provided by operating activities. The Company believes that this measure provides valuable assistance to investors and analysts in evaluating the Company's ability to generate cash flow after capital investments and build the cash resources of the Company. The most directly comparable measure prepared in accordance with IFRS is net cash provided by operating activities less net cash used in investing activities.
All-in sustaining costs
The Company believes that all-in sustaining costs ("AISC") more fully defines the total costs associated with producing gold.
The Company calculates AISC as the sum of refining costs, third party royalties, site operating costs, sustaining capital costs, and closure capital costs all divided by the gold ounces sold to arrive at a per ounce amount. Other companies may calculate this measure differently as a result of differences in underlying principles and policies applied. Differences may also arise due to a different definition of sustaining versus non-sustaining capital.
AISC reconciliation
AISC and costs are calculated based on the definitions published by the
SOURCE
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