Things are still cooking in the gold industry, as evidenced by the superlatives dusted off Tuesday by Vancouver-based Bluestone Resources Inc. (TSX-Venture:BSR).
In particular, the junior miner hailed the results of an Independent Feasibility Study on its 100%-owned high-grade Cerro Blanco Gold project. The study explained that the project represents what Tuesday’s news release called a "robust, rapid pay-back, high-grade underground mining operation."
Base case was completed at a gold price of $1,250/oz and a silver price of $18/oz. Both figures are in U.S. dollars.
Average annual production of 146,000 ounces gold is foreseen over the first three years of production, with average costs of $579/oz (net credits) placing the Project in the bottom end of the lowest quartile of the global cost curve.
To quote CEO Darren Klinck, "The mine plan supports the original conviction that the Project can be developed into a small footprint, low impact operation that will provide significant opportunities for local stakeholders and generate attractive returns for investors."
Shares in BSR climbed 11 cents, or 7.9%, Tuesday to $1.51, on volume of 232,000 shares.
