Bluestone Resources Inc. (TSXV: BSR) is continuing to progress the Cerro Blanco gold project in Guatemala.
Since the start of the year Bluestone has released the results of a robust Feasibility Study, advanced engineering and procurement activities and initiated construction of key offsite infrastructure.
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 and Engineering
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.
“Our timeline had many activities advancing prior to the receipt of the environmental permit amendment. Important procurement vendor package negotiations have been completed to understand delivery times on critical long lead equipment,” President and CEO, Jack Lundin, said.
“We will adjust project activities to preserve capital and to reflect a more traditional approach where capital commitments do not occur until approval of the permit amendment is received. The company remains fully committed to advancing the Cerro Blanco project and will continue to advance the approval of the permit amendment.”
For further information please visit: https://bluestoneresources.ca/