Bluestone Closes Upsized $22 Million Bought Deal Financing

Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company" – https://www.commodity-tv.net/c/search_adv/?v=298837) is pleased to announce that that it has closed its previously announced increased bought deal financing (the “Offering”). The Offering was comprised of 12,800,000 units of the Company (the “Units”) at C$1.25 per Unit as well as an over-allotment of 5,141,321 Units for total gross proceeds of C$22,426,651.

Each Unit consisted of one common share of the Company (each, a “Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder to acquire one Share for 24 months from the closing of the Offering at a price of C$1.65.

The Units issued pursuant to the Offering are subject to a statutory hold period in Canada expiring on July 20, 2019.

The Company plans to use the net proceeds from the Offering towards advancing the Company’s Cerro Blanco Gold project and for general corporate purposes.

The Offering was made through a syndicate of underwriters led by Cormark Securities Inc. and included Haywood Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., and PI Financial Corp. (collectively, the “Underwriters”). The Corporation paid to the Underwriters a cash commission equal to 6.0% of the aggregate gross proceeds of the Offering and a reduced a cash commission of 3.0% on Units sold to certain insiders of the Company (collectively, the “Underwriting Fee”). The Company paid no Underwriting Fee to the Underwriters on orders from certain retail groups designated by the Company.

Insiders of the Company purchased an aggregate of 6,164,221 Units pursuant to the Offering. Zebra Holdings and Investments S.à.r.l (“Zebra”), CD Capital Natural Resources Fund III LP (“CD”) and Lorito Holdings S.à.r.l (“Lorito” and together with Zebra and CD, the “Significant Shareholders”), held 23.70%, 16.71% and 12.53%, respectively, of the issued and outstanding common shares in the capital of the Company, on a non-diluted basis, prior to the closing of the Offering. Pursuant to the Offering, Zebra subscribed for 2,845,262 Shares, CD subscribed for 1,320,000 Shares and Lorito subscribed for 1,503,959 Shares. Following completion of the Offering, Zebra, CD and Lorito hold 17,976,262, 11,986,333 and 9,501,959 Shares, respectively, representing 21.98%, 14.65% and 11.62%, respectively, of the issued and outstanding Shares. The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation. The Company did not file a material change report 21 days prior to closing of the Offering as the participation of insiders of the Company in the Offering had not been confirmed at that time.

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the Unites States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

About Bluestone Resources

Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100%-owned Cerro Blanco Gold and Mita Geothermal projects located in Guatemala. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.

On Behalf of Bluestone Resources Inc.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

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 the Company believes, expects or anticipates will or may occur in the future including, without limitation: the use of proceeds of the Offering and estimates of the average annual projected production are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to Bluestone and often use words such as “expects”, “plans”, “anticipates”, “estimates”, “intends”, “may” or variations thereof or the negative of any of these terms.

All forward-looking statements are made based on the Company’s current beliefs as well as various assumptions made by them and information currently available to them.  Generally, these assumptions include, among others: the ability of Bluestone to carry on exploration and development activities; the price of gold, silver and other metals; there being no material variations in the current tax and regulatory environment; the exchange rates among the Canadian dollar, Guatemalan quetzal and the United States dollar remaining consistent with current levels; the presence of and continuity of metals at the Cerro Blanco Project at estimated grades; the availability of personnel, machinery and equipment at estimated prices and within estimated delivery times; metals sales prices and exchange rates assumed; appropriate discount rates applied to the cash flows in economic analyses; tax rates and royalty rates applicable to the proposed mining operation; the availability of acceptable financing; anticipated mining losses and dilution; success in realizing proposed operations; anticipated timelines for community consultations and the impact of those consultations on the regulatory approval process.

Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company 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 relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; risks and uncertainties related to expected production rates, timing and amount of production and total costs of production; risks and uncertainties related to ability to obtain 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; risks associated with geopolitical uncertainty and political and economic instability in Guatemala; risks and uncertainties related to interruptions in production; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; uncertain political and economic environments and relationships with local communities; variations in rates of recovery and extraction; developments in world metals markets; risks related to fluctuations in currency exchange rates; as well as those factors discussed under “Risk Factors” in the Company’s Amended and Restated Annual Information Form, a copy of which has been filed on the Company’s profile on SEDAR at www.sedar.com.

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-IFRS Financial Performance Measures

The Company has included certain non-International Financial Reporting Standards (“IFRS”) measures in this new release. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, 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-IFRS 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 IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.

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

ASIC is calculated based on the definitions published by the World Gold Council (“WGC”) (a market development organization for the gold industry comprised of and funded by 18 gold mining companies from around the world). The WGC is not a regulatory organization.

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

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White Gold Corp. Announces Fully Funded $13M Exploration Program Focused on Vertigo Discovery, Further Increasing Golden Saddle and VG Gold Resources and New Gold Discoveries

White Gold Corp. (TSX.V: WGO, OTC – Nasdaq Intl: WHGOF, FRA: 29W) (the "Company" – https://www.commodity-tv.net/c/search_adv/?v=298903) is pleased to announce its fully funded 2019 exploration program on its extensive 439,000 hectare land package, representing over 40% of the prolific White Gold District in Yukon, Canada.

The 2019 exploration program, budgeted at approximately $13M, has been designed to follow up on the Company’s new high grade Vertigo discovery on its JP Ross property (the “JP Ross Program”), expand the Golden Saddle and Arc resources with diamond drilling on the GS West discovery and other nearby targets (the “White Gold Program”), increase the recently acquired 230,000 oz VG resource (4.4 million tonnes grading 1.65 g/t gold Inferred resource at a cut-off of 0.5 g/t gold) on its QV property, as well as to identify and test high priority regional targets (the “Regional Program”). Backed by partners Agnico Eagle Mines Limited (TSX: AEM, NYSE: AEM) and Kinross Gold Corp (TSX: K, NYSE: KGC) the 2019 exploration program is planned to commence in the coming weeks.

A map outlining the Company’s 2019 work program can be found at http://whitegoldcorp.ca/investors/exploration-highlights/.

Shawn Ryan, Chief Technical Advisor stated, “2019 will be one of the most exciting seasons for White Gold and has the potential to be a transformative year for us. Our systematic regional exploration approach is working exceptionally well and resulted in four new discoveries last year (the Vertigo, GS West, Ryan’s Surprise and Betty Ford). This year’s program will also feature diamond drilling on the Vertigo discovery to expand this new unique style of high-grade gold mineralization. Concurrently, the regional program on the JP Ross Property will follow up on multiple other highly anomalous gold targets near the Henderson Creek drainage system where placer gold mining has been taking place since the turn of the century, and will continue to utilize detailed soil sampling, GT probe and RAB drilling to hone in on high-probability targets, which we anticipate will lead to more new discoveries. The Golden Saddle deposit will be moved along with more diamond drilling on the GS West and Ryan’s Surprise discoveries. The recently acquired VG deposit will undergo drilling to expand the known resources and we will be applying our proprietary regional exploration program to advance some of our other priority targets.  All and all this should be our best season yet.”

Highlights Include:

  • Vertigo Target: 10,000m diamond drill program designed to evaluate geometry as well as the lateral and vertical continuity of mineralized structures discovered in 2018. Additional reverse circulation (“RC”) drilling to evaluate strike potential of mineralization based on field mapping, geochemistry and geophysics.
  • JP Ross regional activity to include evaluation and initial drill testing of 4 to 5 additional target areas on 14km trend.
  • Golden Saddle deposit to be expanded with 4,500m of diamond drilling conducted on GS West discovery, with 1,500m of infill and step-out drilling on Arc deposit.
  • Regional activity on the White Gold property to include evaluation and initial testing of 3 to 4 additional regional targets with RC/RAB drilling.
  • Regional exploration activities on other properties to include over 15,000 soil samples, 1,000 GT probe samples, geologic mapping and prospecting, IP-Resistivity, LiDAR and other baseline exploration work for the continued identification and building of targets.
  • Initial work including GT Probe sampling set to commence in April 2019 with diamond drilling anticipated to commence in May 2019.

The JP Ross Program

Exploration on the Vertigo discovery is expected to include over 7,500m in diamond drilling across the entire currently defined 2km Vertigo trend to define the geology, geometry and continuity of the system, with an additional 2,500m for follow up drilling on key zones identified within the system to test plunge lines and alternative geometries. An RC drill will also be used to test the continuity of mineralization along strike to build additional targets for future diamond drilling.

Additional exploration is expected to be conducted along the 14km Vertigo Trend and JP Ross property at large, with the focus of this work to build up several additional target areas through soils, GT Probe, geophysics, other exploration activities and first pass RAB/RC drill testing as warranted.

Initial work including GT Probe sampling is set to commence in April with diamond drilling anticipated to commence in mid-to-late May, with a full camp to be built on site to support the program.

The Vertigo target is a new, road accessible, discovery on the JP Ross property which is comprised of 2,850 quartz claims covering over 57,000 hectares with at least 14 known target areas and numerous placer gold bearing creeks  

To date, at least 12 mineralized structures are recognized on the Vertigo target over a 1500m x 650m area, and consist of W-NW trending, steeply dipping zones of quartz veining, brecciation, and fracture-controlled mineralization with disseminated to vein-controlled pyrite-arsenopyrite-galena and, locally, visible gold mineralization.

Highlights from 2018 include, Hole JPRVERRAB18-014 intersecting 23.44 g/t Au over 24.38m from surface ending in mineralization; Hole JPRVERRAB18-001 intersecting 56.25 g/t Au over 3.05m within a broader intercept of 17.34 g/t Au over 10.67mfrom 3.05m depth; Hole JPRVERRAB18-011 intersecting 45.00 g/t Au over 3.05m from 1.52m depth, within a broader intercept of 9.65 g/t Au over 15.2m and surface grab samples of 139.9 g/t, 134.6 g/t and 132.9 g/t over a 685m strike length.

The White Gold Program

Exploration activities on the White Gold property are planned to include over 6,000m in diamond and an expected 25 holes of RC/RAB drilling, with diamond drilling focusing on the GS West discovery area with minor infill and step-out drilling on the Arc deposit based on updated geological modelling, while RC/RAB drilling will test high priority targets on the White Gold for potential future diamond drilling. Other exploration activities will include LiDAR, GT Probe, soil sampling, geophysics and geologic mapping, all conducted to evaluate and define additional drill targets on the property.

Reopening of the Thistle camp is currently underway with drilling activities anticipated to commence by mid-May.  

The White Gold property has a current mineral resource of 960,970 ounces Indicated at 2.43 g/t Au and 262,220 ounces Inferred at 1.70 g/t Au, with mineralization on both the Golden Saddle and Arc known to extend beyond the limits of the current resource estimate and believed to remain open in multiple directions.

Golden Saddle highlights from 2018 include, Hole WHTGS18D0175 intersecting 4.6 g/t Au over 44.9m from 218m depth, including 8.57 g/t Au over 17m from 223m depth and Hole WHTGS18D0193 intersecting 3.95 g/t Au over 68m from 210m depth, including 5.42 g/t Au over 47.3m.

The GS West discovery is a shallow mineralized zone open at depth and along strike, located 750m to the west of the Golden Saddle deposit along the structural trend.  All three holes drilled in 2018 hit Golden Saddle style alteration and mineralization with the most significant results from WHTGS18D0184 returning 1.92 g/t Au over 24m from 117m depth, including 2.97 g/t Au over 10m from 118m depth, and 8.12 g/t Au over 1.95m from 121.05m depth.  

The Regional Program

The 2019 Regional Program will focus on high priority targets that have been identified in the 2018 and prior seasons, and will include over 1,000 GT Probe samples and 15,000 soil samples. Additional exploration activity to prepare and better understand the Company’s other targets will include airborne magnetic surveys, LiDAR surveys, drone surveys, IP-Resistivity surveys, geologic mapping and prospecting. The regional exploration will be conducted across multiple of the Company’s properties.

QV Property – VG Zone

Included in the Company’s Regional Program is 1,000m of diamond drilling focused on testing strike extensions of the historically underexplored VG resource located on the QV property, recently acquired from Comstock Metals.

Large portions of the property remain unexplored, which leaves a strong potential for the discovery of additional zones of structurally-controlled and/or intrusion-related mineralization, with several currently unexplored known targets with similar characteristics to the Golden Saddle and Vertigo.  Approximately 4,300m of diamond drilling over 23 holes has been conducted on the VG to date. Of these, only 17 diamond drill holes formed the basis of a 2014 maiden resource estimate(1) of 230,000 oz of gold (4.4 million tonnes grading 1.65 g/t Au) in the Inferred category at a cut-off of 0.5 g/t Au.

The VG resource is open along strike and at depth, and has similar mineralization and structural control to the nearby Golden Saddle deposit. The QV property is 16,335 hectares (40,000 acres) and contiguous to the Company’s White Gold property which hosts its Golden Saddle and Arc deposits, 20 km southwest of the Vertigo discovery on its JP Ross property and 44 km northwest of Goldcorp Inc.’s (TSX: G, NYSE: GG) Coffee project. The resource and property were acquired by White Gold Corp from Comstock Metals in early 2019. 

For further details regarding the acquisition of the VG resource and QV property, please refer to the press release of the Company dated March 1, 2019 available on SEDAR at www.sedar.com.

  • See Comstock Metals Ltd. technical report titled “NI 43-101 TECHNICAL REPORT on the QV PROJECT”, dated August 19, 2014, available on SEDAR

Regional Exploration Program activities are anticipated to include exploration activity on the following targets:

Betty Property

The Betty property covers the eastern extension of the Coffee Creek fault, which hosts the Coffee deposit owned by Goldcorp Inc., and hosts a 12km trend of anomalous gold in soils (trace to 7,288 ppb Au); intrusion-related and structurally controlled styles of mineralization. Highlights of drilling completed at the Betty Ford target include Hole BETFRDRAB18-002 returning 1.08 g/t Au over 50.29m from 4.57m depth, including 2.24 g/t Au over 9.41m from 19.81m depth with the top 25.91m of the hole showing oxidized mineralization and additional shallow mineralization encountered in other holes along trend. Highlights at the Betty White target included gold mineralization intersected in every hole, with individual results ranging from trace to 3.61 g/t Au. Gold mineralization encountered across multiple target areas highlights the large-scale potential of the mineralized system, with additional targets remaining undrilled.

Black Hills Property

Road accessible property located adjacent to the JP Ross Property on the east. There exist numerous untested gold in soil anomalies that are coincident with the regional-scale structures that cut through the property, with soil assays ranging from trace to 1,594 ppb Au.

Dime Property

Located 70km to the south-west of Dawson City, YT, with the claims bordering numerous historic mineral occurrences and placer gold bearing creeks. At least 3 untested gold in soil anomalies are known (Dime West, Dime Central, & Polaris) on the property that warrant follow up work; with soil values ranging from trace to 6,082 ppb Au. The targets are associated with a regional scale structure and the overall geologic setting and geochemistry of the area is very similar to the Vertigo discovery, located 40km to the SE.

Nolan Property

Located 50km west of Dawson City, YT with claims covering multiple placer gold bearing creeks. Numerous gold in soil anomalies on the southern end of the property that have yet to be investigated; with soil values ranging from trace to 968 ppb Au. This includes the Hart Mt. area, which contains two robust targets, including Hart South a 2,000m by 400m trend with soil values ranging up to 539 ppb Au, as well as Hart East which measures 2,500m by 900m and yielded values ranging up to 399 ppb Au. Additionally, prospecting in the Hart area returned grab samples of epithermal-style quartz veins that returned from trace to 0.172 g/t Au, trace to 1,467 g/t Ag, and trace to 10.63% Pb.

About White Gold Corp.

The Company owns a portfolio of 22,040 quartz claims across 35 properties covering over 439,000 hectares representing over 40% of the Yukon’s White Gold District. The Company’s flagship White Gold property has a mineral resource of 960,970 ounces Indicated at 2.43 g/t Au and 282,490 ounces Inferred at 1.70 g/t Au as set forth in the technical report entitled “Independent Technical Report for the White Gold Project, Dawson Range, Yukon, Canada”, dated March 5, 2018, filed under the Company’s profile on SEDAR. Mineralization on the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. Regional exploration work has also produced several other prospective targets on the Company’s claim packages which border sizable gold discoveries including the Coffee project owned by Goldcorp Inc. with a M&I gold resource(2) of 3.4M oz and Western Copper and Gold Corporation’s Casino project which has P&P gold reserves(2) of 8.9M oz Au and 4.5B lb Cu. For more information visit www.whitegoldcorp.ca.

  • Noted mineralization is as disclosed by the owner of each property respectively and is not necessarily indicative of the mineralization hosted on the Company’s property.

Qualified Person

Jodie Gibson, P.Geo. and Vice President of Exploration for the Company is a “qualified person” as defined under National Instrument 43-101 (“NI 43-101”) and has reviewed and approved the content of this news release.

Cautionary Note Regarding Forward Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", “proposed”, "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the Company’s properties; future growth potential of the Company, including whether any proposed exploration programs at any of the Company’s properties will be successful; exploration results; and future exploration plans and costs and financing availability.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include:; expected benefits to the Company relating to exploration conducted and proposed to be conducted at the Company’s properties;; failure to identify any additional mineral resources or significant mineralization; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the Company’s properties; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining and mineral exploration; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; and those factors described in the most recently filed management’s discussion and analysis of the Company. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Neither the TSX Venture Exchange (the “Exchange”) nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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GOLDMINING announces resource estimate for the Yellowknife Gold Project, Northwest Territories, Canada

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Highlights:

  • Updated mineral resource for the Yellowknife Project includes a measured and indicated resource of 1,059,000 ounces grading 2.33 g/t gold and an inferred resource of 739,000 ounces grading 2.47 g/t gold (Table 1);
  • This resource estimate increases GoldMining’s aggregated measured and indicated resource to 10,530,000 ounces gold (13,429,000 ounces gold equivalent) and aggregated inferred resource to 12,444,000 ounces gold (14,896,000 ounces gold equivalent) resulting in a 13% increase in the measured and indicated categories and an 11% increase in the inferred category across all of its Projects (Table 2);
  • Extensive historic exploration work completed on the Project including diamond drilling (231,600 m in 1,061 holes), underground development (2,399 m), bulk sampling (10,200 t) and positive metallurgical studies;
  • Project is accessible by permitted winter road extending 95 km north from Yellowknife with nearby infrastructure including hydro-electric power, air transportation, service providers and skilled workforce; and
  • Located in the mining-friendly jurisdiction of the Northwest Territories, home to major mines operated by DeBeers, Rio Tinto, and The Washington Companies.

GoldMining Inc. (the "Company" or "GoldMining" – http://www.commodity-tv.net/c/search_adv/?v=298220) (TSX: GOLD; OTCQX: GLDLF) is pleased to announce an updated mineral resource estimate for its 100% owned Yellowknife Gold Project (the "Yellowknife Project" or the "Project"), Northwest Territories, Canada.  The mineral resource estimate was prepared by SRK Consulting (U.S.), Inc. ("SRK") and includes a measured and indicated resource of 14,108,000 tonnes grading 2.33 g/t gold (1,059,000 ounces) and an inferred resource of 9,302,000 tonnes grading 2.47 g/t gold (739,000 ounces) using a variable cut-off of 0.5 and 1.5 g/t gold for pit constrained and underground resources, respectively. 

This resource estimate updates the previously disclosed historic estimate completed by the previous owner of the Project, and importantly represents an 18% increase in the measured and indicated resource grade versus the historic estimate.  Since its acquisition of the Project, GoldMining has identified numerous areas for exploration, as well as additional targets for follow-up within its large land package.

Commenting on today’s news release, Garnet Dawson, CEO of GoldMining commented, "The Yellowknife Gold Project is located in the underexplored Yellowknife Greenstone Belt, host to historic gold mines including the Con and Giant Mines located adjacent to the city of Yellowknife and the Discovery Mine, located on GoldMining’s property.  Since acquiring the Project, the Company has focused on compiling the large historic database, updating the historic resource estimate and applying for new Land Use Permits and Water Licence necessary for future exploration programs.  With the updated resource estimate announced today and the necessary government approvals expected in the next few months, the Project is well positioned to advance to the next stage of economic study."

The Yellowknife Project includes five gold deposits with resource estimates, being Nicholas Lake, Bruce, Ormsby, Goodwin Lake and Clan Lake, which are located 50 to 95 km north of the city of Yellowknife.  Adjacent to the Ormsby deposit, a 50-person winterized camp is accessible by winter road or by air via a 1,000-metre-long gravel airstrip from Yellowknife.

Gold mineralization at Nicholas Lake is hosted in a sub-vertical shear zone that strikes east-west across a granodiorite body or within meta-sedimentary rocks in close proximity of the granodiorite.  The shear zone contains quartz-sulphide veins with associated gold mineralization within a zone of silica and sericite altered granodiorite.  The zone measures approximately 125 m wide, has a strike length of 225 m and is open at the current explored depth of 450 m below surface.  The deposit is defined by 27,590 m of surface and underground diamond drilling in 141 holes and 820 m of underground development.

The Bruce and Ormsby deposits are hosted in a sub-vertical, northeast striking shear zone along the eastern margin of amphibolite near the contact with adjacent meta-sedimentary rocks.  Quartz-sulphide veins and associated gold mineralization have several orientations typically striking AZ320º to AZ340º and dipping 10º to 50º to the southwest.  The Ormsby deposit varies from 75 to 150 m in width, has a strike length of 1,000 metres and is open at the current explored depth of 550 m.  The deposits are defined by 157,570 m of surface and underground diamond drilling in 707 holes and 1,579 m of underground development.

Goodwin Lake deposit is hosted in a sub-vertical, northeast striking shear zone that cuts gabbroic rocks.  Similar to the Bruce and Ormsby deposits, quartz-sulphide veins and associated gold mineralization within the shear zone have several orientations with more prominent vein sets striking northeast and dipping steeply parallel to the shear zone and a shallow dipping, cross-cutting vein set that strikes northwest.  The deposit varies from 25 to 75 m in width, has a strike length of 350 m and has been intersected in drill holes to a depth of 200 m, where the deposit remains open.  The Goodwin Lake deposit is defined by 5,930 m of surface diamond drilling in 28 holes.

Clan Lake deposit is hosted in a sub-vertical, northwest striking shear zone that cuts felsic to mafic meta-volcanic rocks.  Quartz-sulphide veins with associated gold mineralization differ greatly in orientation and overall controls to vein geometry are poorly understood.  Veins commonly have haloes of silica and sericite alteration.  The Main Zone at Clan Lake, that is host to the bulk of the resource, ranges from approximately 125 to 250 m in width, has a strike length of 1,200 m and has been intersected in drill holes to a depth of 400 m below surface, where it is still open.  A second zone named the 330 Zone has been defined to the South West of the Main Zone, which dips steeply northeast and has a strike length of possibly 600 m with an average thickness of less than 5 m.  The Clan Lake deposit is defined by 40,515 m of surface diamond drilling in 185 holes.

Sulphide mineralogy at Ormsby, Bruce, Goodwin Lake and Clan Lake consists of pyrrhotite, pyrite and arsenopyrite with minor chalcopyrite, sphalerite and galena.  At Nicholas Lake, sulphide mineralogy includes arsenopyrite, pyrite, pyrrhotite, sphalerite, galena, chalcopyrite and scheelite.

Metallurgical test work has been performed on composite drill holes and bulk samples from the Nicholas Lake, Ormsby and Clan Lake deposits.

SRK obtained the drill hole databases from archived files used in the 2012 feasibility study mineral resource estimate.  The databases were imported into Seequent Leapfrog® Geo ("Leapfrog") on which SRK performed standard validation tests to ensure the integrity of the database.  Geological and mineralized domains (wireframes) were constructed for each deposit based on surface mapping, core logging and historical records.  Geological and gold grade domains were constructed using three-dimensional implicit and explicit modelling along identified historical mineralization trends.

Wireframes produced in Leapfrog along with the drill hole databases were subsequently imported into Datamine™ Studio RM Software (Datamine™) for block model estimation.  Block models were constructed for each deposit using 3 by 3 by 3 m block dimensions, similar to the block size used in the 2012 estimate to reflect the selective mining unit.  Gold samples were composited to 1.5 m in length within each domain that honored the domain boundaries.  Erratic high-grade gold outliers were analyzed at each of the deposits utilizing Phinar Software’s X10 software, which were then analyzed both visually and statistically for breaks in trend.  Key breaks in the gold grade were reviewed and the percentage of samples capped, impact on the mean grade, and the reduction in the co-efficient of variation were noted.  Variography was used to model the grade continuity and to determine the search ellipse orientations and dimensions for interpolation at each deposit.

SRK completed Kriged (Ordinary Kriging), Inverse Distance Squared and Nearest Neighbor estimates for each deposit.  Ordinary Kriging was chosen as the primary estimation method for all deposits except for Clan Lake, which displayed relatively poor geostatistical continuity and inverse distance squared was used for interpolation.  This lower confidence was reflected in the inferred classification of the deposit.  Grades were interpolated into each block using a two- or three-pass estimation methodology using ever increasing search ellipses for each pass.  Validation of the model was completed by comparison of the block model and drill hole grades by visual inspections in section and plan across the deposit. 

Resource Classification

Block model quantities and grade estimates for the Project were classified according to the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (May 2014).

SRK’s classification system is similar to that used in the 2012 estimate with adjustments at some deposits based on re-interpretation of geology.

Nicholas Lake

Indicated Mineral Resources were blocks within the modelled veins above the 150 m elevation that were informed by a minimum of 2 drill holes on either the first or second search pass.

Inferred Mineral Resources were blocks in the model that do not meet the criteria for Indicated resources and have been informed by a minimum of one drill hole on the second or third estimation search pass.

Ormsby and Bruce

Measured Mineral Resources (Ormsby only) were blocks informed by a minimum of 2 drill holes within a drill spacing of 12.5 m and deemed to have sufficient geological confidence to confirm grade continuity.

Indicated Mineral Resources were blocks informed by a minimum of two drill holes internal to either the Measured or the Indicated classification solids and estimated on either the first or second estimation pass.

Inferred Mineral Resources were blocks in the model that do not meet the criteria for Measured or Indicated resources and have been informed by a minimum of one drill hole on the third estimation search pass.

Goodwin Lake

All blocks have been classified as Inferred Mineral Resources due to the relatively wide drill hole spacing.

Clan Lake

All blocks have been classified as Inferred Mineral Resources due to the relatively wide drill hole spacing, lack of geological continuity as displayed in the variography and during the geological modelling process.

Reasonable prospects for eventual economic extraction of the resource were met by reporting the resource within a conceptual pit shell using a cut-off grade of 0.5 g/t and resources below the pit using a cut-off grade of 1.5 g/t gold.  Conceptual pit shells were generated using Maptek Lerchs Grossman software for pit optimization.  The conceptual pit delineated resource is reported within a conceptual pit shell using an assumed gold price of US$1,500/oz, metallurgical recovery of 90%, mining cost of US$2.00/t and processing and G&A cost of US$23.00/t.  Underground resources with reasonable prospects of eventual economic extraction were stated as those contained within gold grade shapes above a 1.50 g/t Au cut-off.

The SRK 2019 measured and indicated resource has seen a reduction in the in-situ ounces of 38%, but an increase in overall grade of 18%, while the inferred resource had a 52% increase in the in-situ ounces, but a 6% decrease in overall grade as compared to the SRK 2012 SRK resource estimate.  SRK attributes these changes to more conservative geological modelling, block model interpolation parameters and classification.

Further details regarding the foregoing estimate, including the estimation methods and procedures, will be available in a NI 43-101 Technical Report, which will be filed on SEDAR (www.sedar.com) under the Company’s profile within 45 days from the date of this release.

Quality Control – Quality Assurance Program

The above resource estimate was based on drilling programs completed by previous operators.  The drill programs incorporated control samples including blanks, duplicates and standards as part of their Quality Control – Quality Assurance Program.  The control samples from the drill programs have been reviewed and verified by the Qualified Persons (as defined herein) and the assay results were deemed suitable for resource estimation. 

Qualified Person

The resource estimate disclosed herein on the Yellowknife Project was prepared for GoldMining by Ben Parsons, B.Sc., M.Sc., MAusIMM (CP), of SRK Consulting (U.S.), Inc. and Mr. Dominic Chartier, P.Geo. (APGO #2775 and OGQ #874), of SRK Consulting (Canada) Inc.  Mr. Parsons and Mr. Chartier are recognized as qualified persons as defined in Canadian National Instrument 43-101 ("NI 43-101"), are independent of the Company and have reviewed and approved the disclosure regarding the resource estimate for the Yellowknife Project disclosed herein.  Mr. Chartier completed a site visit to the Yellowknife Project from September 25 to 26, 2018.

SRK previously completed a resource estimate on the Project in 2012 as part of a feasibility study for the previous owner.  No new exploration work or drilling has been completed on the Project since the last estimate or the effective date of March 1, 2019 of this estimate.

Paulo Pereira, President of GoldMining Inc. has reviewed and approved the technical information contained in this news release.  Mr. Pereira holds a Bachelors degree in Geology from Universidade do Amazonas in Brazil, is a Qualified Person as defined in NI 43-101 and is a member of the Association of Professional Geoscientists of Ontario.

Cautionary Note

Investors are cautioned not to assume that any part or all of the mineral deposits in the "measured", "indicated" and "inferred" categories will ever be converted into mineral reserves with demonstrated economic viability or that inferred mineral resources will be converted to the measured and/or indicated categories through further drilling.  In addition, the estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.  Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of pre-feasibility or feasibility studies.

About GoldMining Inc.

GoldMining is a public mineral exploration company focused on the acquisition and development of gold assets in the Americas.  Through its disciplined acquisition strategy, GoldMining now controls a diversified portfolio of resource-stage gold and gold-copper projects in Canada, U.S.A., Brazil, Colombia and Peru.  Additionally, GoldMining owns a 75% interest in the Rea Uranium Project, located in the Western Athabasca Basin of Alberta, Canada.

The above aggregated resource statement is provided for information purposes only.   Investors should refer to the underlying technical reports referenced above for project-specific factors relating to each resource estimate.

Forward-looking Statements

This document contains certain forward-looking statements that reflect the current views and/or expectations of GoldMining with respect to its business and future events, including expectations and future plans respecting the Project and statements with respect to the details of the mineral resource estimate.  Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the markets in which GoldMining operates.  Investors are cautioned that all forward-looking statements involve risks and uncertainties, including: the inherent risks involved in resource estimation and the exploration and development of mineral properties, the uncertainties involved in resource estimation and interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with GoldMiningꞌs expectations, accidents, equipment breakdowns, title and permitting matters, labour disputes or other unanticipated difficulties with or interruptions in operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the Project.  These risks, as well as others, including those set forth in GoldMiningꞌs filings with Canadian securities regulators, could cause actual results and events to vary significantly.  Accordingly, readers should not place undue reliance on forward-looking statements and information.  There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward looking information, will prove to be accurate.  GoldMining does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

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White Gold Corp. Closes Acquisition of QV Gold Project; Includes 230,000 Oz Gold Inferred Resource Contiguous to the White Gold Property and Compelling New Targets

White Gold Corp. (TSX.V: WGO, OTC – Nasdaq Intl: WHGOF, FRA: 29W) (the "Company" – http://www.commodity-tv.net/… ) is pleased to announce the closing of the previously announced purchase (the "Acquisition") of the QV Gold Project (the "Property") from Comstock Metals Ltd. (TSX.V: CSL) (the "Vendor"). The Property covers 16,335 hectares (40,000 acres) in the White Gold District of the Yukon Territory, bringing the Company’s total holdings in the White Gold District to 439,000 hectares (1,080,000 acres). The Property is contiguous to the Company’s White Gold property which hosts its Golden Saddle and Arc deposits (960,970 oz indicated and 282,490 oz inferred), 20 km southwest of the Company’s new Vertigo Discovery on its JP Ross property and 44 kilometres northwest of Goldcorp Inc.’s (TSX: G, NYSE: GG) Coffee project. The Company plans to incorporate the Property in its 2019 exploration plan which will be announced in due course. 2019 marks the third year of the Company’s systematic and data driven regional exploration program backed by it partners Agnico Eagle Mines Limited (TSX: AEM, NYSE: AEM) and Kinross Gold Corp (TSX: K, NYSE: KGC).

"This was a very strategic acquisition for us that immediately increases our global resources with a 230,000 oz Inferred gold deposit which is open along strike and at depth, and has similar mineralization and structural control to our nearby Golden Saddle deposit. The property also has a number of very compelling exploration targets with many similarities to our recent Vertigo discovery, as well as the Golden Saddle deposit," said David D’Onofrio, Chief Executive Officer. "We are very excited with the potential for near term resource expansion and new discoveries on this property based on our extensive experience in the District."

To learn more about White Gold’s recent developments and plans for 2019, please join us at our 2019 PDAC corporate presentation on Tuesday, March 5 at 3:00PM in Room 802 at the Metro Toronto Convention Centre or visit us at Booth 3248.

Maps & images providing additional information on the Property can be found at LEGAL*47516586.2 http://whitegoldcorp.ca/investors/exploration-highlights/.

The QV Gold Project

The Vendor optioned the QV Property from Shawn Ryan in 2010 and discovered the VG Zone deposit (the "VG") in 2012 on the southern end of the Property where most of the historic work has been focused. Approximately 4,300 metres of diamond drilling over 23 holes have been conducted on the VG to date. Of these, 17 diamond drill holes formed the basis of a 2014 maiden resource estimate(1) of 230,000 ounces of gold (4.4 million tonnes grading 1.65 g/t gold) in the Inferred category at a cut-off of 0.5 g/t gold.

The mineralization is hosted along a NE trending, gently south dipping structural zone that has been traced for over 700m at surface and consists of disseminated to vein-controlled pyrite with brecciation, stockwork quartz-carbonate veining, and sericite alteration. The VG shares strong similarities to the Golden Saddle deposit both in structural setting as well as mineralization style and is open along strike and at depth. Highlights from historic drilling includes, QV12-001(1): 1.03 g/t Au over 78m; incl. 6.15 g/t Au over 5.6m, QV12-004(1): 2.23 g/t Au over 42m, QV12-006(1): 1.45 g/t Au over 60m, QV13-011(1): 1.36 g/t Au over 42.6m, QV13-012(1): 1.76 g/t Au over 42.3m, QV17-018(2): 1.42 g/t Au over 45.5m, QV17-019(2): 1.48 g/t Au over 51.2m.

The most recent work on the Property occurred in 2017 and included six diamond drill holes on the VG which expanded the footprint of known mineralization beyond the limits of the historic resource calculation. Significant results from the 2017 program included 1.42 g/t gold over 45.5m from 67.5m down hole in hole QV17-018, which expanded the mineralization 125 metres down dip from previous drilling, and 1.48 g/t gold over 51.2m from 98m down hole in hole QV17-019, which expanded the mineralization 45m west of previous drilling.

Additional work on the Property has included soil sampling, GT Probe sampling, trenching, IP-Resistivity surveys, airborne magnetic-radiometric surveys, geological mapping/prospecting and minor RAB drilling. This work has defined other compelling targets with similarities to the Company’s Golden Saddle deposit and recently discovered Vertigo zone warranting follow up exploration including the Stewart, Tetra and Shadow zones.

Stewart Zone: Located 5km N-NW of the VG and consists of a 1.5km, E-W, trending gold in soil anomaly, with values from trace to 274.1 ppb Au and anomalous Bi-Ag-Te-Mo. The target occurs adjacent to a Jurassic intrusive that may be associated with mineralization in the area.

Tetra Zone: Located 8km N of the VG and consists of a 1.5km, E-W, trending gold in soil anomaly, with values from trace to 151.5 ppb Au. The target occurs along an interpreted E-W oriented fault based on magnetic data for the area and is open and unexplored to the west.

Shadow Zone: Located 12 km north of the VG zone and consists of multiple gold in soil anomalies, ranging from trace to 514ppb Au and up to 2.7km long, associated with a series of NW and ENE trending structures. Strongly anomalous Ag-Pb-Bi+/-As+/-Mo also occur in the area, and the overall geochemical and structural setting is similar to the Company’s Vertigo discovery 23km to the west.

Large portions of the Property also remain unexplored with strong potential for the discovery of additional zones of structurally-controlled and/or intrusion-related mineralization.

The Property is subject to a 2.0% underlying net smelter return royalty (NSR), of which 1.0% may be purchased for $2,500,000. Annual cash advance payments of $25,000, deductible against the royalty, are payable until commencement of commercial production.

As determined in accordance with NI 43-101 the Property is not considered "material" to the Company relative to the size and stage of development of the Company’s existing portfolio of properties, and accordingly the disclosure in section 2.4 of NI 43-101 is not required.

Terms of the Acquisition

In order to acquire the Property, the Company made a cash payment of $375,000 and issued an aggregate of 1,500,000 common shares (the "Subject Shares") and 375,000 share purchase warrants ("Warrants") in accordance with the instructions of the Vendor. Each Warrant is exercisable to acquire one additional common share of the Company for a period of three years from the closing date of the Acquisition (the "Closing Date") at an exercise price of $1.50. All securities issued and issuable in connection with the Acquisition are subject to a statutory hold period expiring on June 29, 2019. In addition, the Subject Shares are subject to a voluntary hold period pursuant to which (i) 35% of the Subject Shares shall be released on the date which is four months following the Closing Date; (ii) 35% of the Subject Shares shall be released on the date which is eight months following the Closing Date; and (iii) the balance of the Subject Shares shall be released on the date which is twelve months following the Closing Date.

Advisors and Counsel

Red Cloud Klondike Strike Inc. acted as financial advisor to the Vendor and Folger, Rubinoff LLP acted as the Vendor’s legal advisor. Cassels Brock & Blackwell LLP acted as legal advisor to White Gold Corp.

(1) See Comstock Metals Ltd. technical report titled "NI 43-101 TECHNICAL REPORT on the QV PROJECT", dated August 19, 2014, available on SEDAR

(2) See Comstock Metals Ltd news release dated Dec. 18, 2017, available on SEDAR For further details regarding the Acquisition, please refer to the press release of the Company dated January 14, 2019 available on SEDAR at www.sedar.com.

About White Gold Corp.

The Company owns a portfolio of 22,040 quartz claims across 35 properties covering over 439,000 hectares representing over 40% of the Yukon’s White Gold District. The Company’s flagship White Gold property has a mineral resource of 960,970 ounces Indicated at 2.43 g/t gold and 282,490 ounces Inferred at 1.70 g/t gold as set forth in the technical report entitled "Independent Technical Report for the White Gold Project, Dawson Range, Yukon, Canada", dated March 5, 2018, filed under the Company’s profile on SEDAR. Mineralization on the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. Regional exploration work has also produced several other prospective targets on the Company’s claim packages which border sizable gold discoveries including the Coffee project owned by Goldcorp Inc. with a M&I gold resource(3) of 3.4M oz and Western Copper and Gold Corporation’s Casino project which has P&P gold reserves(3) of 8.9M oz Au and 4.5B lb Cu. For more information visit www.whitegoldcorp.ca.

(3) Noted mineralization is as disclosed by the owner of each property respectively and is not necessarily indicative of the mineralization hosted on the Company’s property.

Qualified Person

Jodie Gibson, P.Geo. and Vice President of Exploration for the Company is a "qualified person" as defined under National Instrument 43-101 ("NI 43-101") and has reviewed and approved the content of this news release.

Cautionary Note Regarding Forward Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forwardlooking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and LEGAL*47516586.2 projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "proposed", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to the completion of the Acquisition; the anticipated benefits to the Company, the Vendor and their shareholders respecting the Acquisition; the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the Company’s properties; future growth potential of the Company, including whether any proposed exploration programs at any of the Company’s properties will be successful; exploration results; and future exploration plans and costs and financing availability.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or the Vendor to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company and Vendor relating to the Acquisition; expected benefits to the Company relating to exploration conducted and proposed to be conducted at the Company’s properties; the receipt of all applicable regulatory and third party approvals, as required, for the Acquisition; failure to identify any additional mineral resources or significant mineralization; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the Company’s properties; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, caveins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining and mineral exploration; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; and those factors described in the most recently filed management’s discussion and analysis of each of the Company and Vendor. Although the forward-looking statements contained in this news release are based upon what management of the Company and Vendor believe, or believed at the time, to be reasonable assumptions, the Company and Vendor cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. Neither the Company nor the Vendor undertakes any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Neither the TSX Venture Exchange (the "Exchange") nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information:

David D’Onofrio

Chief Executive Officer

White Gold Corp.

(647) 930-1880

ir@whitegoldcorp.ca

In Europe:

Swiss Resource Capital AG

Jochen Staiger

info@resource-capital.ch

www.resource-capital.ch

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Hybrid Prospect Generator Alianza Minerals Received Exploration Permit And Raised Cash

<p><strong>1. Introduction</strong></p> <p>Alianza Minerals (ANZ.V) is the second hybrid prospect generator I am discussing in a short period of time, after closely related Avrupa Minerals (AVU.V). Both companies are guided by Pacific Opportunity Capital, a Vancouver financial consulting and merchant banking firm, led by Mark T. Brown, who is also the Executive Chairman of both companies. Whereas Avrupa is focused on Southern Europe, Alianza has their projects located in the Americas, with projects in Nevada, Yukon, BC, and Peru, and 3 royalties in Mexico.</p> <p>The company recently raised C$862k in December 2018, and is mapping out exploration programs for several projects. Their current flagship project is the 100% owned Haldane high grade silver project in the Yukon, acquired in March 2018. The company has a 10 year exploration land use permit, which they announced they had received on December 4, 2018, and with the cashed up treasury they are readying to get started, as winter break comes to an end in the Yukon in a few months from now. It is interesting to note that with the road access this project has, it may be possible to extend the exploration season through the winter months in certain areas of the property. This would avoid a lengthy winterbreak with no news.</p> <p>Let’s have a look at the potential of Haldane, and the other projects.</p> <p><em>All presented tables are my own material, unless stated otherwise.</em></p> <p><em>All pictures are company material, unless stated otherwise.</em></p> <p><em>All currencies are in US Dollars, unless stated otherwise.</em></p> <p><strong>2. The company</strong></p> <p>Alianza Minerals is a prospect generator with a hybrid business model of joint venture funding and self-funded projects to maximize opportunity for exploration success. The company currently has gold, silver and base metal projects in Yukon Territory, British Columbia, Nevada and Peru, and several royalties in Mexico. The flagship project of Alianza is the Haldane project in the Yukon, and other important projects are KRL in BC, and Horsethief in Nevada. </p> <p>These are all pretty good jurisdictions for mining projects according to the Policy Perception Index (PPI) of the most recent Fraser Institute Survey of Mining Companies. The Yukon can be found at position 22 out of 91, Nevada at 5/91, BC at 36/91, Peru at 43/91 and Mexico for the royalties at 49/91. The PPI is the most important figure of this survey, as it indicates the mining friendliness of a jurisdiction, which encompasses corruption, permitting, speed of administrative processing, politics, local sentiment, etc. The Survey is usually published in the last week of February, so a new version can come out any day now, probably adjusting the positions and scores somewhat, so if interested you can check this <a href="https://www.fraserinstitute.org/…>.  </p> <p>The management team is led by prospect generator veteran President and CEO Jason Weber. Despite his relatively young age (48) he has been a President and CEO since 2007 of various prospect generators (Rimfire Minerals, Estrella Gold) and a developer (Kiska Metals, Whistler Gold project in Alaska, US). With Rimfire, he managed to reel in over $30M for exploration from JV partners like Newmont, Barrick, Anglogold, First Quantum and Xtrata.</p> <p>On the financial front the most important figure is Executive Chairman Mark T. Brown, who merged predecessor Tarsis Resources with Estrella Gold in order to form Alianza Minerals, as President of Pacific Opportunity Capital, his family fund which is basically an incubator for many junior mining companies. Their most successful exit was Rare Element Resources, where he entered the rare earth space in 1999, well before almost anyone else, based on watching China cornering the rare earth market at an early stage. He had to wait until 2011 for the exit, but it was worth the wait many times over. Brown was the CFO of Miramar Mining and Eldorado Gold before he joined his father John Brown to build out Pacific Opportunity Capital. Alianza also has a few real mining veterans on the Board of Directors, as there are John Wilson (Codelco, AMAX) and Marc Blythe (Almaden Minerals, Nevsun, Placer Dome, WMC).</p> <p>Alianza Minerals has its main listing on the main board of the TSX Venture, where it’s trading with ANZ.V as its ticker symbol. With an average volume of about 42,838 shares per day, the company’s trading pattern is not very liquid at the moment, but I expect this to improve when drilling results will start to come in during Q2, 2019, and some paper from the last raise coming free trading at the end of April.</p> <p>The company currently has 60.34M shares outstanding (fully diluted 90.1M), 25M warrants (the majority at @C$0.15 or more, of which 19.2M warrants are expiring in September 2019, March 2020 and April 2020) and several option series to the tune of 3.5M options in total, the majority priced at C$0.15 or more and expiring from April 2020 onwards. Alianza sports a tiny market capitalization of C$3.92M based on the February 27 share price of C$0.065. The company is basically controlled by management, as 30% is held closely by management, Board of Directors and insiders. Chairman Mark Brown is the largest shareholder with 10.5M shares (17.4%). Other major shareholders own 37% of the company, so 67% is in tight hands. Alianza had an estimated working capital position of about C$536K (excluding due to related parties) as of December 2018.</p> <p>As can be seen in the chart, the overall negative sentiment in especially H2, 2018, the following substantial tax loss selling in November-December and the December financing had an impact on the share price, after a pretty good start of 2018. As gold and silver prices are on the rise since December, sentiment for miners is cautiously optimistic at the moment. All things considered, it seems the share price has bottomed as 5-6c are multi year lows, and I view these levels as good buying opportunity, as drilling will finally begin on prospective land.  </p> <p>As a reminder: the hybrid prospect generator model has been described extensively in my first article about Avrupa Minerals with all pros and cons. The main characteristic is that such a company forms JVs with other, larger companies who finance the joint exploration efforts for the majority of the project in return. The hybrid part consists of the junior self-financing by raising money in the markets (or selling royalties on their projects) one or more of their projects, but also not having to hand over large parts of their projects.</p> <p>Advantages of a prospect generator are limited dilution of share structures, strong partners and spread out risks as usually more than one project is explored at the same time, with different partners. Disadvantages are that the value proposition for investors isn’t always clear, the junior loses the majority of project ownership, and the agenda of the JV partners isn’t always the same as those of the junior. Especially when large majors are involved, investors need to beware of how the JV deal is structured, regularly resulting in the major running away after first drill holes don’t immediately indicate Tier I potential, despite still being a pretty good prospect for an intermediate producer.    </p> <p><strong>3. Projects</strong></p> <p>The Haldane silver project in the Yukon is the flagship project, so this will receive the most attention from me in this article. Following this I will briefly describe secondary projects like KRL Gold and Horsethief, and the other projects. First up are the Yukon projects, including Haldane.</p> <p><strong>Yukon projects</strong></p> <p>Alianza Minerals has six different projects at their disposal in the Yukon, flagship project Haldane, White River, Prospector Mountain, MOR Property, Goz Greek and Tim. For White River and Prospector Mountain no sampling or drill results are mentioned, so I consider these projects very early stage.</p> <p>The MOR Property has seen drilling, but only generated short intervals of medium graded, non-economic mineralization so far. The Goz Creek project is different, as it sports a relatively small historic resource estimate of 2.9Mt of high grade zinc (11.25% Zn), but also near surface. The 2008 down dip/along strike drilling generated pretty convincing results like:</p> <ul> <li>91 metres grading 17.19% zinc and 39.67 grams silver per tonne;</li> <li>50 metres grading 12.83% zinc and 10.91 grams silver per tonne;</li> <li>67 metres grading 6.98% zinc, including 21.10 metres grading 10.32% zinc;</li> <li>59 metres grading 5.73% zinc, including 17.49 metres grading 6.67% zinc; and</li> <li>31 metres grading 7.00% zinc, including 2.96 metres grading 20.21% zinc and 17.35 grams silver per tonne.</li> </ul> <p>The deepest intercepts ended before 100m depth, so this zinc mineralization appears to be very economic in my view, as an open pit zinc operation needs only about 2-2.5% Zn. As other zinc projects in the Yukon don’t have oxidized ore which is sometimes the case with high grade zinc near surface, I assume that Goz Creek isn’t oxidized either. It made me wonder why this project didn’t see more drilling during the current zinc cycle, and this is what management had to say about it: The Goz Property lies within the Peel Watershed Land Use Plan region, where the Yukon government is consulting with First Nations and stakeholders to define areas of the region eligible for development and industrial use. Due to the uncertainty of the outcome of this process, the property has not been advanced. If the project area is deemed ineligible for development, Alianza will investigate its options with respect to compensation as we feel there is a significant zinc deposit at Goz. Management isn’t counting on a successful outcome for development, and is expecting to go the direction of compensation in the future.</p> <p>The Tim project has seen sampling and trenching in the eighties and confirmation sampling in 2013, and generated very interesting results: historic trench chip samples from 1988 returned 352.4 g/t silver and 9.12% lead over 4 m, and two grab samples taken from another trench returned assays of 1248.1 g/t silver and 49.5% lead, and 978.7 g/t silver and 32% lead. The 2013 confirmation sampling returned 6.4 meters grading 220 g/t silver and 4.74% lead. Within this interval, 3.7 meters assayed 365 g/t silver and 7.54% lead, so it sure looks interesting. Tim has a lot of similarities (geological setting, style of mineralization) with the Silver Tip Mine 20 km away, bought in October 2017 by Coeur from JDS for C$250M. The story goes, that  when the original discovery was made at Silvertip, the owners were evaluating both Tim and Silvertip and had to chose which property to drill first, and basically on rolling the dice picked Silver Tip. So maybe Alianza could get lucky and might have Silver Tip potential on their hands here, who knows.</p> <p>The Haldane project is an under-explored high-grade silver property in a historic silver mining region. Alianza Minerals acquired the property from Equity Exploration Consultants on March 5, 2018, under the following purchase terms:</p> <ul> <li>issuing to Equity, 2,000,000 shares of Alianza upon receipt of TSX-V approval</li> </ul> <ul> <li>making two stage cash payments of $50,000 each to Equity by June 30, 2018 and June 30, 2019;</li> <li>making a final $100,000 payment in cash or by issuing the number of shares of equivalent value at the Alianza’s election, on June 30, 2019;</li> <li>and by making bonus share payments to Equity:</li> <ul> <li>issuing Equity 250,000 shares upon the public disclosure of a Measured Mineral Resource (as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) of 5,000,000 oz silver-equivalent at 500 g/t silver-equivalent;</li> <li>issuing Equity 500,000 shares upon the decision to commence construction of a mine or processing plant on any part of the Haldane Property.</li> </ul> </ul> <ul> <li>Alianza has also agreed to grant Equity the right to manage exploration programs at Haldane through 2023 and to assume all the obligations with respect to the underlying 2% net smelter royalty on the property.</li> </ul> <p>A total compensation of $100k in cash and 2M shares ($160k at the time of the transaction), and another $100k in cash or shares seems very reasonable to me. According to the agreement, Alianza will be the operator but Equity will be hired by Alianza as the exploration program manager.</p> <p>The 8,579 hectare Haldane Silver Property is located 25 km west of Keno City, Yukon Territory in the western portion of the Keno Hill Silver District, where companies like Alexco Resource Corp. and Metallic Minerals Corporation are currently exploring.  </p> <p>Notably, the access road to Victoria Gold Corp.’s Eagle Gold Mine crosses the northern portion of the property. Considering the collection of claims and companies, it clearly seems to be a prospective region:</p> <p>The Haldane property is well situated approximately 25 km west of the main Keno Hill deposits. Mineralization in the district consists of structurally-controlled, silver-bearing veins. The Keno Hill silver deposits produced over 200 million ounces of silver in a long history of mining from 1913 to 1989, with production recommencing briefly from 2011-2013. The Keno Hill District ranks as one of the highest grade silver districts in the world, as in the past 4.87 million tonnes were mined at an average grade of a very high 1,389 grams/tonne (g/t) silver, 5.62% lead and 3.14% zinc. For comparison, the highest mined silver grade at the moment in Mexico, the world’s number one silver producing country, is coming from the relatively small Platosa Mine of Excellon, sporting a grade of 549g/t silver.</p> <p>Haldane itself has seen some high grade silver/lead mining of its own as well in the distant past. One underground development produced 24.7 tonnes of hand-sorted ore that graded at 3,102 g/t Ag and 59% Pb. Another one produced a total of 2.1 tonnes at 4,602 g/t Ag and 57.9% Pb. Over 65 deposits and prospects have been identified in the district. Most occur within the Keno Hill quartizite as structurally-controlled veins in proximity to the Robert Service Thrust. This is exactly the case with the Haldane project (quartzite in greyish blue):</p> <p>To me it appears that this Robert Service Thrust serves as a potential source of precipitated mineralization in the area, considering the large number of deposits found close to it. The 2018 field program was successful according to management, and generated 3 new targets. The Ross anomaly resulted in the largest and most prospective target, which could extend the Mount Haldane Vein System up to 3.5 km of strike length. The 2018 program also identified a potential new vein target 2.8 km northwest of the MHVS at the Bighorn anomaly.</p> <p>This section represented the best intercept of this drill program, which is decent and economic, but not really spectacular. I don’t necessarily expect longer intercepts as mineralization is narrow vein type and breccia hosted, but I do hope for (much) higher grade results, as the historic samples generated many multiples of current results, and Haldane shares lots of aspects with the Keno Hill mining camp:</p> <p>-Quartzite (Keno Hill) host.</p> <p>-Proximity to Robert Service Thrust</p> <p>-Vein and breccia mineralization hosted by complex fault systems</p> <p>- Galena, sphalerite, plus tetrahedrite and possibly pyrargyrite</p> <p>- quartz and manganiferous-carbonate gangue are prevalent</p> <p>- better grade commonly in proximity to northwest cross-faults</p> <p>Again no certainty, but considering the high grade samples already found, the old adit production and the somewhat lower grade veins already hit, Alianza could be circling around some very interesting mineralization.</p> <p>Furthermore, there is sufficient Haldane project potential:</p> <p>-the property is underexplored; prior to 2010, only one surface drill hole outside of Middlecoff has been drilled, over 4 km strike of showings on the Mt Haldane Vein System (MHVS) along strike on the MHVS;</p> <p>- 4 km from Spire Ck to Sundown, Ross Anomaly, only 1400 m drilling to date, 2.6 km of this is untested.</p> <p> -to depth on MHVS and elsewhere; primarily shallow investigations to date, i.e. look under the Ewing fault, get below oxidation Bighorn Creek valley, sulphide preservation and potentially better Ag values</p> <p>- parallel structures; within MHVS buried under talus (large, loose broken stones on mountain side), and elsewhere on the property to the east and west of the MHVS. Confirmed by new targets identified 3 km NE of MHVS in 2018 program</p> <p>- possibility to identify longitudinal faults; key component of Keno Hill setting, lineaments at Haldane suggest presence of these faults.</p> <p>Summarizing Haldane in a nutshell: there has been enough successful reconnaissance exploration, old production and indication of Keno Hill characteristics to suggest that drill programs have a substantial chance of hitting economic mineralization, which might in turn even lead to Keno Hill deposit #66.</p> <p><strong>British Columbia project</strong></p> <p>KRL Gold project</p> <p>This is a very interesting project in my view, optioned from well-known BC/Yukon prospector Bernie Kreft, and available for JV. KRL Gold is located in the middle of the Golden Triangle, host of many deposits and exploration projects, and has seen a lot of successful sampling and trenching so far.</p> <p>The property lies within 2 km of road access and within 5 km of power from AltaGas’ McLymont Creek and Forrest Kerr power projects, and is adjacent to Aben Resources’ Forrest Kerr Project. The Golden Triangle is host to past and present producers such as the Eskay Creek, Snip, Premier, Brucejack and Red Chris mines and major projects including Galore Creek, Schaft Creek and KSM. Discoveries by Aben Resources, GT Gold and Golden Ridge Resources highlight the potential of the Golden Triangle for new discoveries.</p> <p>The KRL Property is host to a swarm of high-grade gold bearing quartz veins exposed in the alpine slopes east of McLymont Creek near its junction with the Iskut River in the Golden Triangle area of northwest British Columbia. Trenching in the late 1980s exposed numerous 10-100 cm-wide quartz veins that assayed in excess of 8.5 g/t gold with multiple samples returning values in excess of 200 g/t gold.</p> <p>At least 11 veins were identified with potential for additional veining below the treeline and under vegetation and talus cover. It is thought that the formerly compromised land position (the gold showings straddling the property boundary) may have been detrimental to the development of the project, as nothing happened with it since the nineties. The present KRL property has been consolidated now, and encompasses the entire showing and surrounding area allowing for a coherent assessment of the high grade gold veins and the potential for additional, and perhaps economic, gold concentrations under talus (loose rocks) or vegetation cover below the treeline.</p> <p>Recent sampling results confirmed the historic findings, and the company is determining now how to advance the exploration program for KRL.</p> <p><strong>Nevada projects</strong></p> <p>Alianza has interests in 5 projects in Nevada, East Walker, BP Project, Bellview, Horsethief and Ashby. Of these projects, Ashby has been leased out to Nevada Canyon Gold Corp, East Walker, BP Project and Bellview seem very early stage projects with no significant results, notwithstanding this the company is actively seeking JV partners for Bellview. Horsethief is the most prospective of the 5 projects according to management, and therefore it is the focus of attention in Nevada. </p> <p>The Horsethief property consists of 63 claims located in Lincoln County, northeast of Pioche. The exploration target on this property is Carlin style gold mineralization. At Horsethief, the country rocks are limestones and siltstones, a fault-controlled block of carbonate rocks within volcanic rocks.</p> <p>Work by prior operators included sampling hematite-rich jasperoid breccia outcrops that reportedly returned gold assays ranging from below detection to 21.94 g/t gold. Numerous shallow sub-gram gold intervals are reported over intercepts of tens of meters from a 1984 drill program. Controls on mineralization appear to be poorly understood at this time. Here is a 3D modeled chargeability/resistivity visual of the project:</p> <p>To be clear, IP models don’t predict any mineralization, but at least these are indicators of potential near surface mineralization.</p> <p><strong>Peru projects</strong></p> <p>Alianza is involved in two projects in Peru as well, Yanac and Pucarana. Of the two, their interest in Pucarana has been converted into a 1.08% NSR royalty. Yanac is a drill-ready, large copper-moly porphyry target, and the result of a former JV with Cliffs Natural Resources, and now 100% owned by Alianza, as Cliffs decided to discontinue with all exploration initiatives in 2014.</p> <p><strong>Mexico projects</strong></p> <p>Alianza holds three Net Smelter Royalties (NSRs) on projects in Mexico. All three projects, Yago, San Pedro and Mesquites are owned by Almadex Minerals (TSX.V: AMZ).  Alianza holds a 1% NSR on each (capped at $1 million per property). Yago has seen recent small scale production of 28.8koz gold. The other 2 royalties are very early stage and many years from production.</p> <p><strong>4. Plans</strong></p> <p>Management has planned additional trenching at the new Bighorn anomaly and will be drilling at the Mount Haldane Vein System and Ross targets soon. While they are still planning out the 2019 program, CEO Weber expects additional groundwork and soil geochemical sampling, to trench 400m at Bighorn, and conduct the first 800m of diamond drilling at MHVS and the Ross targets. He forecasts a timeline for Bighorn to start the fieldwork and trenching in June, for MHVS and Ross targets to start drilling in July . First results of trenching are expected in August and for drilling of MHVS and Ross in September.</p> <p>Some targets will require more excavator time to build pads and access to the pads which causes more costs. Management will be working on this shortly. They are planning for challenging drilling conditions (upper portions of heavily oxidized, fractured rock), require special care to ensure good recovery of the rock. In larger and subsequent programs the drilling costs will come down as mobilization costs are spread over many more metres and the drillers are more efficient at recovering the vein material. Therefore, this budget is quite conservative until management has a good handle on these variables.</p> <p>Alianza is also looking to advance earlier-stage projects to the drill-ready stage, to find partners for existing projects and to identify new exploration projects in key jurisdictions. Field programs are planned for the newly-acquired high-grade KRL gold property in the Golden Triangle, BC and are being considered for the Bellview, BP (Nevada) and Tim (Yukon) properties to identify and prioritize drill targets.The KRL program for 2019 is scheduled for the latter part of Q3, consisting of mapping, prospecting and soil geochemical sampling in the area of the KRL Showing and areas to the north where additional mineralization might be detected.</p> <p>It is expected by management that the current treasury will take Alianza through their 2019 exploration programs at Haldane and KRL. Additional work in Nevada may include BP and Bellview, where mapping, prospecting and geophysical surveys will help to start defining drill targets for subsequent programs. They are considering another raise to expand the Haldane program and to advance other projects. Management is actively assessing new opportunities in North America as well as finding option partners or buyers for projects and royalties.</p> <p><strong>5. Conclusion</strong></p> <p>Alianza Minerals seems to be following the direction of related Avrupa Minerals, by recently and successfully raising sufficient cash on their own to start drilling their 100% owned projects. Besides this, they also have a few other interesting projects that should be able to generate solid JVs. Although I understand the relative safety of a prospect generator, I applaud a junior going for their own luck at fully owned projects, as all added value through potentially successful exploration will be theirs. This is how you create potential multibaggers, and this is why I am in this part of the investment industry.</p> <p>I view Haldane as a prospective high grade silver exploration opportunity, and I’m very interested if they can hit some really high grade intercepts, as has happened in many places at and around Haldane in the past. If Alianza hits something substantial, with the current tiny market cap and relatively low liquidity the share price could see significant moves upwards. On the other hand, I like the risk/return here as there seems to be strong support at 5-6c.</p> <p><em>I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter, in order to get an email notice of my new articles soon after they are published.</em></p> <p><em>By: <a href="https://www.criticalinvestor.eu/…://www.criticalinvestor.eu/</a>  </em></p> <p><em>Disclaimer:</em></p> <p><em>The author is not a registered investment advisor, and currently has a long position in this stock. Alianza Minerals is a sponsoring company. All facts are to be checked by the reader. For more information go to www.alianzaminerals.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.</em></p>

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Osisko Closes Silver Stream Transaction With Falco Resources

Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (TSX & NYSE: OR – http://www.commodity-tv.net/c/search_adv/?v=298621) is pleased to announce the closing of its previously announced (see press release of June 18, 2018) senior secured silver stream facility (“Silver Stream”) with reference to up to 100% of the future silver produced from the Horne 5 property (“Horne 5” or the “Project”) located in Rouyn-Noranda, Québec from Falco Resources Ltd. (“Falco”) (TSXV: FPC).

Pursuant to the silver purchase agreement entered into between Osisko and Falco on February 27, 2019, Osisko will purchase up to 100% of the refined silver from the Project. As consideration for the Silver Stream, Osisko will pay to Falco staged upfront cash deposits of up to C$180 million plus ongoing payments equal to 20% of the spot price of silver on the day that refined silver is delivered, to a maximum of US$6 per ounce of refined silver.

On closing of the Silver Stream, Osisko has funded the first deposit of C$25,000,000, net of C$23,390,733 representing the C$20,000,000 principal amount of loans from Osisko to Falco entered into in May 2016 and September 2018 and accounts payable by Falco to Osisko, resulting in a cash outlay of C$1,609,267 to Falco. The Silver Stream is secured by the assets of Falco.

“We are pleased to conclude this important financing with Falco to continue the development of the Horne 5 project. The addition of the silver stream on Horne 5 brings in a new generation of assets that have the potential to become anchor assets within Osisko’s royalty and stream portfolio.” commented Sean Roosen, Chair and CEO of Osisko.

Falco and Osisko have also reached an agreement to settle interest owed under each of the May 2016 and September 2018 loans through the issuance of 5,353,791 common shares of Falco (“Falco Common Shares”) at a deemed price of C$0.34 per share (the “Shares for Debt Settlement”). Completion of the Shares for Debt Settlement is subject to Falco obtaining necessary regulatory approvals, including acceptance of the TSX Venture Exchange.

The Horne 5 Project

Horne 5 is a development-stage project located in Rouyn-Noranda, Québec. Horne 5 is located in the former Horne mine that was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Falco completed a feasibility study for the Project in 2017 that demonstrated positive economics, and estimated annual payable gold production of 219,000 ounces at US$399 per gold ounce over a 15 year life of mine. Falco is currently in the permitting process and working on obtaining all third-party approvals to advance project construction.

Early Warning Disclosure

Immediately prior to the Shares for Debt Settlement, Osisko had beneficial ownership of, or control and direction over, (i) 36,031,449 Falco Common Shares, representing approximately 17.8% of the issued and outstanding Falco Common Shares, and (ii) 6,052,222 warrants each entitling the holder to purchase one Falco Common Share (the “Falco Warrants”). Immediately following the Shares for Debt Settlement, Osisko will have beneficial ownership of, or control and direction over, 41,385,240 Falco Common Shares, representing approximately 19.9% of the issued and outstanding Falco Common Shares, and (ii) 6,052,222 Falco Warrants. Assuming the exercise of the Falco Warrants, Osisko would have beneficial ownership of, or control and direction over, 47,437,462 Falco Common Shares, representing approximately 22.2% of the Falco Common Shares issued and outstanding.

Osisko will acquire the Falco Common Shares issued under the Shares for Debt Settlement for investment purposes and in accordance with applicable securities laws, Osisko may, from time to time and at any time, acquire additional Falco Common Shares and/or other equity, debt or other securities or instruments (collectively, “Securities”) of Falco in the open market or otherwise, and reserves the right to dispose of any or all of its Securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Securities, the whole depending on market conditions, the business and prospects of Falco and other relevant factors.

This news release is issued under the early warning provisions of the Canadian securities legislation. A copy of the early warning report to be filed by Osisko in connection with the Shares for Debt Settlement described above will be available on SEDAR under Falco’s profile. To obtain a copy of the early warning report, you may also contact Joseph de la Plante, Vice President, Corporate Development of Osisko at (514) 940‑0670. Falco’s head office is located at 1100 avenue des Canadiens-de-Montréal, Suite 300, Montréal, Québec, H3B 2S2.

Related Party Transactions

The Silver Stream is considered a “related party transaction” for Falco under Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (“Regulation 61-101”). Osisko understands that Falco is exempt from the requirements to obtain a formal valuation in connection with the Silver Stream, as the shares of Falco are not listed on any of the specified markets. The Silver Stream was subject to receipt of the Disinterested Shareholder Approval of Falco which was obtained on November 29, 2018.

The Shares for Debt Settlement is considered to be a "related party transaction" for Falco under Regulation 61‑101 but Osisko understands that Falco is exempted from the requirements to obtain a formal valuation and to obtain minority approval, as the fair market value of the consideration for the Shares for Debt Settlement does not exceed 25% of Falco’s market capitalization.

Mr. Guy Desharnais, Ph.D., P.Geo, is the qualified person for this release as defined by Regulation 43‑101 respecting Standards of Disclosure for Mineral Projects and has reviewed and verified the technical information contained herein. Mr. Guy Desharnais is an employee of Osisko and is non-independent.

About Osisko Gold Royalties Ltd

Osisko Gold Royalties Ltd is an intermediate precious metal royalty company focused on the Americas. Osisko holds a North American focused portfolio of over 130 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada. Osisko also owns a portfolio of publicly held resource companies, including a 16.7% interest in Osisko Mining Inc., a 32.2% interest in Barkerville Gold Mines Ltd. and a 15.4% interest in Victoria Gold Corp.

Osisko’s head office is located at 1100 Avenue des Canadiens-de Montréal, Suite 300, Montréal, Québec, H3B 2S2.

For further information please contact, please contact Osisko Gold Royalties:

Joseph de la Plante

Vice President, Corporate Development

Tel. (514) 940-0670

jdelaplante@osiskogr.com

In Europe :

Swiss Resource Capital AG

Jochen Staiger

info@resource-capital.ch

www.resource-capital.ch

Forward-looking Statements

Certain statements contained in this press release may be deemed “forwardlooking statements” within the meaning of applicable Canadian and U.S. securities laws. These forwardlooking statements, by their nature, require Osisko to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forwardlooking statements. Forwardlooking statements are not guarantees of performance. These forwardlooking statements, may involve, but are not limited to the terms and conditions of the Silver Stream facility and the amount and terms of deposit payments to be made by Osisko under the Silver Stream facility, the anticipated benefits deriving from the investment and transaction between Osisko and Falco, the receipt of third party consents, TSX Venture Exchange approvals and other regulatory approvals. Words such as “may”, “will”, “would”, “could”, “expect”, “believe”, “plan”, “anticipate”, “intend”, “estimate”, “continue”, or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forwardlooking statements. Information contained in forwardlooking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including the receipt of regulatory approvals, management’s perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. Osisko considers its assumptions to be reasonable based on information currently available, but cautions the reader that their assumptions regarding future events, many of which are beyond the control of Osisko, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect Osisko and its business.

For additional information with respect to these and other factors and assumptions underlying the forwardlooking statements made in this press release, see the section entitled “Risk Factors” in the most recent Annual Information Form of Osisko which is filed with the Canadian securities commissions and available electronically under Osisko’s issuer profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission and available electronically under Osisko’s issuer profile on EDGAR at www.sec.gov. The forward looking information set forth herein reflects Osisko’s expectations as at the date of this press release and is subject to change after such date. Osisko disclaims any intention or obligation to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise, other than as required by law.

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White Gold Corp Further Expands Golden Saddle Deposit Geological Model Drilling 3.26 g/t Gold Over 35m

White Gold Corp. (TSX.V: WGO, OTC – Nasdaq Intl: WHGOF, FRA: 29W) (the "Company” – http://www.commodity-tv.net/c/search_adv/?v=298689) is pleased to announce additional drill results from its Golden Saddle deposit and the new Ryan’s Showing discovery on its White Gold property, Yukon, Canada. Drilling on the Golden Saddle identified new zones of high-grade gold mineralization in the Golden Saddle Upper Zone (“GS Upper Zone”) which is above the Golden Saddle Main Zone (“GS Main Zone”). The drilling also added additional continuity to the geological model, infilling gaps and significantly increasing the thickness of mineralization in the GS Main Zone in certain areas.

Follow up drilling on the newly discovered Ryan’s Showing mineralized zone further defined the geometry and orientation of the mineralization of the discovery and infilled a 105m gap between the initial discovery holes, demonstrating continuity and providing a better understanding of the structural controls, which remain open along strike and at depth.

The Company is currently in the process of finalizing its fully funded 2019 exploration plan with details to be released in due course.

Maps to accompany this news release can be found at http://whitegoldcorp.ca/investors/exploration-highlights/.

Highlights Include:

  • Drilling above the GS Main Zone demonstrates strong potential for a series of additional mineralized zones within the hanging wall (GS Upper Zone) that were not previously recognized as most of the historic drilling on the target was oriented sub-parallel to these zones.
  • Golden Saddle hole WHTGS18D0196 returned two significant zones of mineralization: 2.39 g/t Au over 34m from 31m depth (GS Main Zone) and 1.62 g/t Au over 19m from 265m depth (GS Footwall Zone); expanding the width of the GS Main Zone by approximately 60% in this area and demonstrating additional downdip continuity along the GS Footwall Zone.
  • Golden Saddle hole WHTGS18RC0022 returned 3.26 g/t Au over 35.05m from 160m ending in mineralization (GS Main Zone), including 5.69 g/t Au over 16.76m, expanding the width of the GS Main Zone by approximately 60% in this area.
  • Additional drilling on the Golden Saddle infilled several historical gaps in the geological model and also expanded mineralization in the geological model in each location.
  • Ryan’s Showing hole WHTRS18D0006returned two significant zones of mineralization: 4.52 g/t Au over 6.06m from 179m depth and 1.32 g/t Au over 10.00m from 200m depth, infilling a previous 105m gap between the initial discovery holes showing greater continuity.
  • Drilling on Ryan’s Showing further defined the shape and orientation of mineralization, providing valuable information to define the geological model and direct follow-up drilling on the target, which remains open along strike and at depth.

“Our 2018 program on the Golden Saddle deposit focused on building ounces through expansion of the known deposit and the discovery of satellite deposits in the immediate vicinity.               We are extremely pleased to have had considerable success on both fronts, expanding the footprint of the Golden Saddle, building the thickness and grade of mineralization within the resource boundary, as well as making the significant GS West and Ryan’s Showing discoveries along trend with Golden Saddle,” stated David D’Onofrio, Chief Executive Officer. “The proximity of the GS West to the Golden Saddle and high-grade results on the Ryan’s Showing make them both very compelling targets which warrant follow-up drilling.  We believe that we are just beginning to define these satellites of the Golden Saddle deposit and are very optimistic for the prospects for these new discoveries to add ounces to our global resources, and for the potential of additional discoveries along trend and in close proximity to our Golden Saddle deposit.”

Golden Saddle Drilling Update

Results for an additional three diamond drill holes and five reverse circulation (“RC”) drill holes have been received for the Golden Saddle. Diamond drill holes WHTGS18D0195 & 196 and RC holes WHTGS18RC0020 – 0024 were drilled in fences across the Golden Saddle deposit area oriented to the SW; oblique to the primary trend of mineralization. The drilling was conducted to improve geologic modelling of the deposit and test for mineralization along lithologic contacts and/or structures perpendicular to the main body of mineralization; particularly in the hanging wall of the deposit (GS Upper Zone). Individual assays for the drilling range from trace up to 18 g/t Au.

The drilling at Golden Saddle successfully demonstrates strong potential for a series of shallow NW trending, steeply NE dipping zones of mineralization within the hanging wall of Golden Saddle, above the GS Main zone. These zones appear to be occurring along lithologic contacts oriented oblique to the primary trend (NE) and dip (~55°) of mineralization with the GS Main Zone, and were not previously recognized as most of the historic drilling on the target was oriented sub-parallel to these contacts. Geologic modelling of these additional zones is currently in progress to ensure they are adequately captured in future resource updates on the project. 

WHTGS18D0195 (Az:225, Dip: -50, Depth: 441m)

WHTGS18D0195 was drilled 150m SW of previously announced hole WHTGS18D0193 (3.95 g/t Au over 68m from 210m depth, including 5.42 g/t Au over 47.3m from 225.7m). The hole returned mineralized intercepts of 5.29 g/t Au over 1.05m from 81.40m depth, and 1.44 g/t Au over 6.38m from 89m depth (GS Upper Zone); 18.85m of 1.99 g/t Au from 148m depth, including 5.85 g/t Au over 3m from 152m depth (GS Main Zone) and 3.82 g/t Au over 2.45m from 353.55m depth (GS Footwall Zone).

WHTGS18D0196 (Az:225, Dip: -50, Depth: 310m)

WHTGS18D0196 was drilled 130m SW of WHTGS18D0195 and returned 2.39 g/t Au over 34m from 31m depth; including 3.21 g/t Au over 24.47m from 37m depth and 7.37 g/t Au over 4.65m from 44.35m depth (GS Main Zone). An additional zone of 1.62 g/t Au over 19m from 265m depth was also intercepted (GS Footwall Zone). The hole infilled a 65m previous gap in the geological model between WD-092 & WD-009 and expanded the geologic model by 14m in the area.

WHTGS18RC0021 (Az:225, Dip: -60, Depth: 201.17m)

WHTGS18RC0021 was drilled 75m to the SW of WHTGS18RC0020. The hole cut three lithologic contacts down the hole and ended immediately above the GS Main Zone. Similar to WHTGS18RC0020, alteration and anomalous mineralization was noted at each contact, strengthening down the hole it approached the GS Main Zone. The most significant intercept consisted of 12.19m of 1.40 g/t Au from 161.54m depth within a broader interval of 35.05m of 0.73 g/t Au.

WHTGS18RC0022 (Az:225, Dip: -60, Depth: 195.07m)

WHTGS18RC0022 was drilled 75m to the SW of WHTGS18RC0021. The hole intersected the GS Main Zone at 160.02m depth and returned 35.05m of 3.26 g/t Au; including 16.76m of 5.69 g/t Au from 169.16m depth; ending in mineralization at 185.93m depth. The hole infilled a 55m previous gap in the geological model between WD-016 & WHTGS18D0176 and expanded the width of the geologic model by 15m in the area.

WHTGS18RC0024 (Az:225, Dip: -60, Depth: 201.17m)

WHTGS18RC0024 was drilled 75m to the SW of WHTGS18RC0023. The hole returned two significant intercepts including 0.99 g/t Au over 4.57m from 36.58m depth within the hanging wall above the GS Main Zone and 16.76m of 2.84 g/t Au from 102.11m depth; including 1.52m of 9.74 g/t Au; from the GS Main Zone. The hole infilled a 75m previous gap in the geological model between WD-036 & WHTGS17RC0005.

Ryan’s Showing Update

The Ryan’s Showing is located approximately 2km west of the Golden Saddle. It is a newly discovered mineralized zone associated with an east-west oriented, steeply south dipping, structure as shown in LiDAR imagery, DIGHEM and IP-Resistivity, which remains open along strike and at depth and demonstrates the potential for multiple mineralized structures. Five diamond drill holes were placed in the area to follow up on previously announced RC results which included 20.64 g/t Au over 6.10m on WHTRS18RC0001 and 5.02 g/t Au over 13.17m on WHTRS18RC0002. Individual assays ranged from trace up to 6.64 g/t Au.

WHTRS18D0006 (Az:180, Dip: -50, Depth: 257m)

WHTRS18D0006 was drilled between RC holes WHTRS18RC0001 and WHTRS18RC0002, infilling a 105m gap between the two holes. Five zones of strong brecciation and quartz veining were noted down the hole and ranged from 2 – 10m in width. All were associated with anomalous results. The two most significant zones returned 4.52 g/t Au over 6.06m from 178.94m depth and 1.32 g/t Au over 10.00m from 200m depth.

Geological Interpretation

Holes WHTRS18D0007 – 0010 were all drilled to the north and east of WHTRS18D006. Each hole intersected zones of alteration, brecciation, and quartz veining but only returned anomalous results (up to 2.03 g/t Au over narrow widths). These holes were drilled based on the interpretation that the mineralization intersected within RC holes WHTRS18RC0001 and WHTRS18RC0002 had a NE trending strike and moderate dip to the NW; similar to Golden Saddle. However, geologic modelling of the zone intersected by the RC holes and WHTRS18D0006 are related to an east-west trending, steeply south dipping, structure that corresponds with anomalous gold in soils and lineaments visible in LiDAR data at surface, and that other zones of alteration and brecciation intersected in the drilling are potential subparallel faults or splays from the primary structure.

About White Gold Corp.

The Company owns a portfolio of 21,218 quartz claims across 34 properties covering over 423,000 hectares representing over 40% of the Yukon’s White Gold District. The Company’s flagship White Gold property has a mineral resource of 960,970 ounces Indicated at 2.43 g/t gold and 282,490 ounces Inferred at 1.70 g/t gold as set forth in the technical report entitled “Independent Technical Report for the White Gold Project, Dawson Range, Yukon, Canada”, dated March 5, 2018, filed under the Company’s profile on SEDAR. Mineralization on the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. Regional exploration work has also produced several other prospective targets on the Company’s claim packages which border sizable gold discoveries including the Coffee project owned by Goldcorp Inc. with a total gold resource (1) of 3.4M oz and Western Copper and Gold Corporation’s Casino project which has P&P gold reserves(1) of 8.9M oz Au and 4.5B lb Cu. For more information visit www.whitegoldcorp.ca.

  • Noted mineralization is as disclosed by the owner of each property respectively and is not necessarily indicative of the mineralization hosted on the Company’s property.

QA/QC

The analytical work for the 2018 program has been performed by Bureau Veritas Commodities Canada Ltd., an internationally recognized analytical services provider, at its Vancouver, British Columbia laboratory.  Sample preparation was carried out at its Whitehorse, Yukon facility. All GT Probe, RAB, RC, and diamond core samples were prepared using procedure PRP70-250 (crush, split and pulverize 250 g to 200 mesh) and analyzed by method FA430 (30g fire assay with AAS finish) and AQ200 (0.5g, aqua regia digestion and ICP-MS analysis). Samples containing >10g/t Au were reanalyzed using method FA530 (30g Fire Assay with gravimetric finish). Metallic-screen analysis may also be utilized if coarse gold mineralization is encounter (FS600).

The work was completed using industry standard procedures, including a quality assurance/quality control (QA/QC) program consisting of the regular insertion of certified standards and blanks into the sample stream. The qualified person detected no significant QA/QC issues during review of the data.

Qualified Person

Jodie Gibson, P.Geo. and Vice President of Exploration for the Company is a “qualified person” as defined under National Instrument 43-101 (“NI 43-101”) and has reviewed and approved the content of this news release. 

Cautionary Note Regarding Forward Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", “proposed”, "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the anticipated benefits to the Company and its shareholders respecting the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the White Gold, Betty and other properties; future growth potential of the Company, including whether any further mineral resources will be established in accordance with NI 43-101 at any of the Company’s properties; exploration results; and future exploration plans.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company relating to the exploration conducted and proposed to be conducted at the Betty, White Gold and other properties; failure to expand or identify any additional mineral resources; the preliminary nature of metallurgical test results; uncertainties relating to future financing; fluctuations in securities and currency markets and commodity prices; change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); employee and indigenous relations; availability of necessary licenses, permits and approvals; the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; title to properties; and those factors described under the heading "Risks and Uncertainties" in the Company’s most recently filed management’s discussion and analysis. Although the forward-looking statements contained in this news release are based upon what management of the Company believes to be reasonable assumptions, t here can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Neither the TSX Venture Exchange (the “Exchange”) nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news

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Copper Mountain Mining Announces Q4 and Full Year 2018 Financial Results

Copper Mountain Mining Corporation (TSX: CMMC | ASX:C6C) (the “Company” or “Copper Mountain” – http://www.commodity-tv.net/c/search_adv/?v=298826) announces fourth quarter and full year 2018 financial results.  All currency is in Canadian dollars, unless otherwise stated.  All results are reported on a 100% basis.  The Company’s Financial Statements and Management Discussion & Analysis (“MD&A”) are available at www.CuMtn.com and www.sedar.com

FOURTH QUARTER 2018 AND FULL YEAR 2018 HIGHLIGHTS

  • Fourth quarter 2018 production was the strongest quarter of the year, with production increasing 9.7% from the prior year to 24.5 million pounds of copper equivalent (comprised of 20.6 million pounds of copper, 8,124 ounces of gold and 62,711 ounces of silver).
  • Full year 2018 production met guidance, with production increasing 4.6% from the prior year to 4 million pounds of copper equivalent (comprised of 78.8 million pounds of copper, 28,250 ounces of gold and 273,913 ounces of silver).
  • C1 cash costs for the fourth quarter decreased 13% compared to the prior year to US$1.60 per pound of copper produced and full year 2018 C1 cash costs decreased 4% compared to the prior year to US$1.77 per pound of copper produced.
  • Revenue for the fourth quarter was $73.1 million from the sale of 19.4 million pounds of copper, 7,475 ounces of gold and 69,761 ounces of silver and revenue for the full year of 2018 was $296.0 million, from the sale of 79.2 million pounds of copper, 26,799 ounces of gold, and 284,086 ounces of silver, net of pricing adjustments.
  • Adjusted earnings per share was ($0.01) for the fourth quarter and $0.02 for the year.
  • Cash flow from operations for the fourth quarter was $28.8 million and $51.3 million for the full year of 2018.
  • In 2018, Mineral Reserves increased at the Copper Mountain Mine, a preliminary economic assessment (PEA) on New Ingerbelle was completed resulting in an after-tax NPV (8%) of US$390 million and a feasibility study was completed for the Eva Copper Project resulting in an after-tax NPV (8%) of US$256 million.

“In 2018, we focused on building a strong foundation from which to grow our business,” said Copper Mountain’s President and CEO, Gil Clausen.  “The Copper Mountain Mine finished the year achieving guidance across all metrics. We are also completing an integrated mine plan which will combine the New Ingerbelle deposit into the Copper Mountain mine plan and may double the mine life. The New Ingerbelle deposit provides the potential to add significant value through the addition of low risk, low cost production, particularly as we evaluate a mill expansion plan, which could allow for increased production levels in our existing mill within our current operating and environmental permits. We expect to complete this integrated life of mine plan and publish a new Technical Report for our Copper Mountain Mine in the first quarter of 2019.”

Fourth Quarter 2018 Financial Review

The Company reported a gross profit for Q4 2018 of $7.9 million, compared to $20.0 million for Q4 2017, and a net loss of $19.0 million in Q4 2018, compared to a net income of $23.5 million in Q4 2017.  The increase in the net loss from net income was primarily a result of a non-cash unrealized foreign exchange loss of $14.7 million compared to a non-cash unrealized foreign exchange loss of $1.8 million for Q4 2017, a change of approximately $12.9 million, which was primarily related to the Company’s debt that is denominated in U.S. dollars. The increase in net loss was also due to lower revenue and higher cost of sales year over year.

The Company recognized revenue of $73.1 million, net of pricing adjustments and treatment charges, on the sale of 19.4 million pounds of copper, 7,475 ounces of gold, and 69,761 ounces of silver and based on an average realized copper price of US$2.81 per pound.  This is compared to Q4 2017 revenue of $85.7 million, net of pricing adjustments and treatment charges, on the sale of to 18.1 million pounds of copper, 5,622 ounces of gold and 67,359 ounces of silver and based on an average realized copper price of US$3.12 per pound for Q4 2017. Despite higher sales, lower revenue year over year was a result of a 10% lower realized copper price in Q4 2018 compared to Q4 2017 and a Q4 2018 mark-to-market adjustment of negative $2.4 million compared to a positive mark-to-market adjustment of $10.3 million in Q4 2017. 

Cost of sales for Q4 2018 decreased marginally to $65.2 million compared to $65.7 million in Q4 2017, even though more concentrate was sold in Q4 2018 than Q4 2017.   This was because Q4 2017 included a $10.8 million write down to the low-grade stockpile, which was included in cost of sales.

Exploration expenditures in Q4 2018 were $1.2 million, which includes exploration in both Australia and British Columbia. 

Full Year 2018 Financial Review

The Company reported gross profit in 2018 of $25.3 million, compared to $59.1 million in 2017, and a net loss in 2018 of $26.9 million, compared to a net income of $67.3 million in 2017.  The increase in net loss in 2018 from net income in 2017 was primarily a result of a non-cash unrealized foreign exchange loss $23.8 million in 2018, compared to a non-cash unrealized foreign exchange gain of $20.9 million in 2017, a change of approximately $45 million, which was mainly related to the Company’s debt that is denominated in U.S. dollars. The increase in net loss was also due to lower revenue and higher cost of sales year over year.

The Company recognized revenue of $296.0 million in 2018, net of pricing adjustments and treatment charges, on the sale of 79.2 million pounds of copper, 26,799 ounces of gold, and 284,086 ounces of silver based on an average realized copper price of US$2.98 per pound.  This compares to revenue of $304.1 million in 2017, net of pricing adjustments and treatment charges, on the sale of 73.9 million pounds of copper, 23,969 ounces of gold and 260,493 ounces of silver, based on an average realized price of realized copper price of US$2.82 per pound. As required under IFRS, revenue in 2017 included a positive mark to market adjustment of $10.7 million for unsettled shipments outstanding at year end, as compared to a negative mark to market adjustment of $0.9 million for 2018 unsettled shipments at year end.

Cost of sales for 2018 increased by $26 million to $270.7 million compared to $245.0 million in 2017. This increase was due in small part to higher costs for diesel fuel, maintenance and power, but primarily due to the change in ore stockpile inventory with a $13.1 million decrease in 2018 charged to cost of sales as compared to a $14.0 million increase in 2017 charged to ore stockpile inventory.  The drawdown of ore stockpiles in the year is a result of increased development stripping as the Copper Mountain Mine starts to expose higher grade areas of the pit for future years.  As required under IFRS, some of these additional costs of stripping are capitalized when the period stripping ratio exceeds the life of mine stripping ratio of 2:1.

Exploration expenditures for the full year of 2018 were $6.5 million which includes exploration in both Australia and British Columbia.

Fourth Quarter 2018 Operating Results Review

In Q4 2018, the Copper Mountain Mine produced 20.6 million pounds of copper, 8,124 ounces of gold, and 62,711 ounces of silver compared to 19.6 million pounds of copper, 5,206 ounces of gold, and 70,384 ounces of silver in Q4 2017. Increased recoveries for all metals and a 5% increase in tonnes milled resulted in strong production results for Q4 2018 and the strongest quarter for copper and gold production in 2018. Increased gold production can be attributed to the new flash floatation circuit installed in the second half of 2018.

Total operating costs (C1) for Q4 2018 were US$1.60 per pound of copper produced, 13% lower than the C1 costs for Q4 2017 of US$1.85 per pound of copper produced. The improvement in costs, when compared to the prior year, is related to several factors including 5% higher copper production in the quarter, a 5% decrease in total mine operating costs in Q4 2018, and a weakening of the Canadian dollar to the United States dollar used when translating C1 costs to United States dollars. It should be noted that substantially all of the Company’s operating costs are priced in Canadian dollars. The decrease in C1 costs is also affected by the levels of deferred stripping in the period as these excess stripping costs are treated as capital expenditures. Deferred stripping costs are captured in all-in-sustaining costs (AISC) and not included in C1 costs. The total cash value of deferred stripping in Q4 2018 was $4.6 million compared to Nil in Q4 2017.

Full Year 2018 Operating Results Review

In 2018, the Copper Mountain Mine achieved annual copper production guidance, producing 78.8 million pounds of copper, 28,250 ounces of gold, and 273,913 ounces of silver compared to 75.8 million pounds of copper, 23,633 ounces of gold, and 277,094 ounces of silver in 2017. This represents an increase of 4% for copper, 19% for gold and a slight 1% decrease in silver production. Increases for copper and gold production as compared to the prior year is a result of improved recoveries and mill throughput in 2018, offset slightly by lower grades being milled in 2018.  Improved recoveries in the mill can be attributed to the installation of the new flash flotation circuit in the third quarter of 2018. Recoveries contributed to strong annual production results which included an increase of total tonnes milled by 3%.

Total C1 costs for 2018 were US$1.77 per pound of copper produced, 4% lower than the C1 costs for 2017 of US$1.84. The improvement in costs per pound is a result of higher copper production in 2018 and slightly lower total mine operating costs when compared to 2017, after taking into account cost associated with increased low-grade stockpile inventories in 2017, as required under IFRS. The decrease in C1 costs was also affected by the levels of deferred stripping in the year as these mining costs are treated as capital expenditures and deferred as required under IFRS. Deferred stripping costs are captured in AISC and not included in C1 costs. The total cash value of deferred stripping in 2018 was $20.2 million, compared to $1.5 million in 2017.

Q4 2018 FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND WEBCAST

The Company will hold a conference call on Friday, February 15, 2019 at 7:30 am (Pacific Standard Time) for management to discuss the Q4 2018 financial and operating results.

Live Dial-in Information

Toronto and international:          1 (647) 427-7450

North America (toll-free):            1 (888) 231-8191

To participate in the webcast live via computer go to:

https://event.on24.com/wcc/r/1912233/DA8D8425873C22105A0E0F317371DD61

Replay Call Information

Toronto and international:          1 (416) 849-0833                              Passcode: 5973748

North America (toll-free):            1 (855) 859-2056                              Passcode: 5973748

The conference call replay will be available from 12:30 pm (PST) on February 15, 2019 until 20:59 pm PST on February 22, 2019. An archive of the audio webcast will also be available on the company’s website at http://www.cumtn.com.

About Copper Mountain Mining Corporation

Copper Mountain’s flagship asset is the 75% owned Copper Mountain mine located in southern British Columbia near the town of Princeton. The Copper Mountain mine produces about 100 million pounds of copper equivalent per year with a large resource that remains open laterally and at depth. Copper Mountain also has the permitted, development stage Eva Copper Project in Queensland, Australia and an extensive 397,000 hectare highly prospective land package in the Mount Isa area.

Additional information is available on the Company’s web page at www.CuMtn.com.

On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION

“Gil Clausen”    

Gil Clausen, P.Eng.
Chief Executive Officer

Website: www.CuMtn.com

Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws.  All statements, other than statements of historical facts, are forward-looking statements.  Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved”.  Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance and opportunities to differ materially from those implied by such forward-looking statements.  Factors that could cause actual results to differ materially from these forward-looking statements include the successful exploration of the Company’s properties in Canada and Australia, the reliability of the historical data referenced in this press release and risks set out in Copper Mountain’s public documents, including in each management discussion and analysis, filed on SEDAR at www.sedar.com.  Although Copper Mountain believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all.  Except where required by applicable law, Copper Mountain disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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Bluestone Announces Additional Drill Results

Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company" – http://www.commodity-tv.net/c/search_adv/?v=298837 ) is pleased to announce additional infill drill results from resource conversion drilling underway at its high-grade Cerro Blanco Gold project. The focus of the ongoing infill drill program is to upgrade the Inferred Resources into Measured and Indicated Resources.

Bluestone recently announced results of a Feasibility Study on the high-grade Cerro Blanco Gold project (see press release January 29, 2019) where one of the principle recommendations for optimizing and further enhancing the project was through potential conversion of a portion of the 360,000 ounces of Inferred Resources to Measured and Indicated Resources through infill drilling (currently ongoing), which will be followed by an updated mineral resource and mine plan.

Two LM-75 diamond drill rigs are currently situated within the North Zone of the Cerro Blanco underground workings and are targeting specific veins in the upper part of the Cerro Blanco resource that can be converted to the Indicated Resource category by infill drilling.

The primary focus of the program is to upgrade the Inferred Resources identified during the previous infill drill program completed in 2018. In addition, this program is also designed to define new resources along known veins in the mine plan that extend outside of the current resource envelope.

David Cass, Vice President of Exploration commented, “The infill drilling program has been designed to strategically target key veins with upgrading resource categories. To date, the program has had an excellent success rate with every key intercept expected to have a positive impact on future project economics, with intercepted veins showing remarkable consistency and continuity, validated by optimum hole orientations reflected in the drilled true widths.”

Hole UGCB18-109 and UGCB18-110 were both drilled from the same underground platform at a positive angle (+35 and +51 degrees respectively). The principle objective of these holes was conversion or extension of veins VN_01, 02 and 03 from Inferred to Indicated Resources. UGCB18-109 intercepted all targeted veins as planned with VN_02 assaying 3.3 meters at 27.9 g/t. Hole UGCB18-110 intersected veins VN_02 and VN_03 with the former assaying 2.0 meters at 10 g/t Au (see table).

Additionally, a new vein, located in the footwall of vein VN_01 was intercepted at 33.7 meters in both holes ( 1.0 meter at 8.5 g/t Au and 1.0 meter at 19.9 g/t Au) and correlates with intercepts drilled in holes UGCB18-101 and UGCB18-106 that assayed 1.95 meters at 12.6 g/t Au and 1.0 meter at 12.4 g/t Au respectively (see press releases January 9th and January 24th, 2019). This new vein is outside of the current resource and will be referred to as VN_18 in future updated resource models.

Drilling is continuing and further results will be reported as received. A plan view showing drill hole locations can be accessed by clicking HERE.

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, Guatemala City, Guatemala, for sample preparation.  Sample pulps are shipped to Inspectorate Laboratories in Vancouver, BC, Canada or 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 technical information set out above in this news release is accurate and therefore approves this written disclosure of the technical information.

About Bluestone Resources

Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100%-owned Cerro Blanco Gold and Mita Geothermal projects located in Guatemala. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.

Forward Looking Statements

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 Bluestone Resources Inc. (“Bluestone” or the “Company”) believes, expects or anticipates will or may occur in the future including, without limitation: the conversion of the inferred mineral resources; increasing the amount of measured mineral and indicated mineral resources; the proposed timeline and benefits of further drilling; the proposed timeline and benefits of the Feasibility Study; statements about the Company’s plans for its mineral properties; Bluestone’s business strategy, plans and outlook; the future financial or operating performance of Bluestone; capital expenditures, corporate general and administration expenses and exploration and development expenses; expected working capital requirements; the future financial estimates of the Cerro Blanco Project economics, including estimates of capital costs of constructing mine facilities and bringing a mine into production and of sustaining capital costs, estimates of operating costs and total costs, net present value and economic returns; proposed production timelines and rates; funding availability; resource estimates; and future exploration and operating plans are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to Bluestone and often use words such as “expects”, “plans”, “anticipates”, “estimates”, “intends”, “may” or variations thereof or the negative of any of these terms.

All forward-looking statements are made based on the Company’s current beliefs as well as various assumptions made by them and information currently available to them.  Generally, these assumptions include, among others: the ability of Bluestone to carry on exploration and development activities; the price of gold, silver and other metals; there being no material variations in the current tax and regulatory environment; the exchange rates among the Canadian dollar, Guatemalan quetzal and the United States dollar remaining consistent with current levels; the presence of and continuity of metals at the Cerro Blanco Project at estimated grades; the availability of personnel, machinery and equipment at estimated prices and within estimated delivery times; metals sales prices and exchange rates assumed; appropriate discount rates applied to the cash flows in economic analyses; tax rates and royalty rates applicable to the proposed mining operation; the availability of acceptable financing; anticipated mining losses and dilution; success in realizing proposed operations; anticipated timelines for community consultations and the impact of those consultations on the regulatory approval process.

Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company 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 relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; risks and uncertainties related to expected production rates, timing and amount of production and total costs of production; risks and uncertainties related to ability to obtain 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; risks associated with geopolitical uncertainty and political and economic instability in Guatemala; risks and uncertainties related to interruptions in production; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; uncertain political and economic environments and relationships with local communities; variations in rates of recovery and extraction; developments in world metals markets; risks related to fluctuations in currency exchange rates; as well as those factors discussed under “Risk Factors” in the Company’s Amended and Restated Annual Information Form.

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-IFRS Financial Performance Measures

The Company has included certain non-International Financial Reporting Standards (“IFRS”) measures in this new release. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, 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-IFRS 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 IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.

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.

Total cash costs

Total cash costs is a common financial performance measure in the gold mining industry but has no standard meaning. The Company reports total cash costs on a gold ounce sold basis. The Company believes that, in addition to measures prepared in accordance with IFRS, such as revenue, certain investors can use this information to evaluate the Company’s performance and ability to generate operating earnings and cash flow from its mining operations. Management uses this metric as an important tool to monitor operating cost performance.

Total cash costs include (cost of sales such as mining, processing, maintenance and site administration, royalties, selling costs and by-product credits) to arrive at total cash costs per ounce of gold sold. Other companies may calculate this measure differently.

AISC and total cash costs reconciliation

ASIC and total cash costs are calculated based on the definitions published by the World Gold Council (“WGC”) (a market development organization for the gold industry comprised of and funded by 18 gold mining companies from around the world). The WGC is not a regulatory organization.

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Bluestone Announces Positive Feasibility Study at Cerro Blanco Gold Project – 34% After-Tax IRR and AISC of US$579/oz

Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company" – http://www.commodity-tv.net/c/search_adv/?v=298745 ) is pleased to announce the results of the Independent Feasibility Study (“Feasibility Study”) prepared in accordance with National Instrument 43-101 (“NI 43-101”) for its 100% owned high-grade Cerro Blanco Gold project (the “Project”). The Feasibility Study demonstrates that the Project represents a robust, rapid pay-back, high-grade underground mining operation.

Darren Klinck, President and CEO commented, “The Feasibility Study outlines a robust development-ready, underground gold mine with a modest capital expenditure demonstrating superior economics.  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. Furthermore, over the next six months as we optimize the project and work to establish adequate project financing, we will see significant opportunity to continue with our objective to upgrade Inferred Resource ounces and then update the mine plan to incorporate potential meaningful mine life extension, further enhancing project economics.”

Feasibility Study Highlights

Unless otherwise indicated, all dollar amounts are stated in U.S dollars (“$”). Base case was completed at a gold price of $1,250/oz and a silver price of $18/oz.

  • Average annual production of 146,000 ounces gold over the first three years of production.
  • Average life of mine (“LOM”) all-in sustaining costs (“AISC”) of $579/oz (net credits), which would place the Project in the bottom end of the lowest quartile of the global cost curve.
  • Average annual free cash flow of $91 million (CAD$117 million) per year over the first three years of production.
  • After-tax internal rate of return (“IRR”) of 34%.
  • Net present value (“NPV”) of $241 million after-tax (CAD$309 million).
  • Initial capital of $196 million with an after-tax payback period of 2.1 years.
  • Life of mine production of approximately 902,000 ounces over 8-year mine life.
  • Proven & Probable Mineral Reserves of 940,000 ounces of gold and 3.6 million ounces of silver (3.4 million tonnes at 8.5 g/t Au and 32.2 g/t Ag). The Feasibility Study excludes an additional 357,000 ounces of Inferred Resources (1.4 million tonnes at 8.1 g/t Au and 23.6 g/t Ag).

“The Feasibility Study is a major milestone on the path to development for the Project. In a very short 18 months, we have assembled a terrific team in Guatemala and Canada, completed a significant amount of technical work, and delivered a Feasibility Study that demonstrates a materially de-risked project with attractive economics. Advancing the Cerro Blanco Project represents a tremendous opportunity to our many stakeholder groups including local communities in Guatemala, government partners, and our shareholders,” commented Darren Klinck, President and CEO.

A corporate video presentation discussing the Feasibility Study is available for viewing by clicking this LINK or by visiting the Bluestone website, www.bluestoneresources.ca.

Project Enhancement Opportunities

Although Bluestone considers the Feasibility Study as providing a robust basis for moving forward with attractive returns and payback, opportunities have been identified to further enhance the Project economics and optimize the engineering. The Company intends to focus on the following opportunities over the next six months in parallel with project financing initiatives:

  • Mine life extension through the potential conversion of a portion of the 360,000 ounces of Inferred Resources (per the press release dated September 11, 2018) to Measured and Indicated Resources through infill drilling (currently ongoing), followed by an updated mineral resource and mine plan.
  • Potential resource growth from step-out drilling along existing veins that extend beyond the current resource envelope (currently ongoing).
  • Identification of new high-grade veins during infill drilling program underway as illustrated in the press release dated January 9, 2019.
  • Further optimization of the mine plan and sequencing through basic engineering and trade-off study review.
  • Review opportunities to optimize backfilling assumptions including evaluating alternatives to paste fill which could reduce capital and operating expenditure.
  • Preliminary test work in evaluating the potential of using ore sorting technologies was very successful and highlighted an opportunity as a cost-effective method to help reduce potential dilution and enhance the production profile by allowing new areas of the orebody to be economically mined.

A drilling program is currently underway as announced on November 13, 2018 and ongoing results will be incorporated into an updated resource estimate in Q3 2019 followed by an updated Feasibility Study.

Cerro Blanco Feasibility Study

The Feasibility Study provides a compilation of the geological, engineering, and hydrology work performed by the previous owners between 1997 and 2017, as well as work undertaken by Bluestone. The results of the Feasibility Study incorporate the infrastructure in place, including 3.2 kilometers of underground development decline, fully functional water treatment plant, maintenance shops, warehouse and office facilities, and a total of 580 holes and over 128,000 meters of drilling.

Bluestone engaged a consortium of independent consultants, led by JDS Energy & Mining Inc., an international engineering firm with extensive experience in both the construction and operation of mining projects. The Feasibility Study was supported by additional leading consultants with expertise in various fields, including: Capuano Engineering, Hatch Ltd., Kirkham Geosystems Ltd., and Stantec Inc.

An independent Technical Advisory Committee (“TAC”) was established to act as a peer review over key technical aspects of the Feasibility Study. The TAC is a group of internationally recognized technical experts who have been engaged with management and the Engineering Area Leads throughout the Feasibility Study. Chaired by Alf Hills, the additional TAC members are Scott Donald (Water Management, Hydrogeology, and Groundwater Modelling), Allan Moss (Mining and Geotechnical), Roger Nendick (Processing and Infrastructure), Robert Sim (Resource Estimation), and Dr. Ward Wilson (Water and Tailings Management).

Comparison to the February 2017 Preliminary Economic Assessment (PEA)

The February 2017 PEA presented a scenario at the time of acquisition with the information available from the previous owners. Since Bluestone acquired the Project, a comprehensive review of the geology and structural controls of the deposit has been completed and formed the basis for the new resource estimate (see press release dated September 11, 2018). This included an infill drilling program undertaken as part of the resource estimate update exercise and was successful in refining the resource model thereby confirming the understanding of the deposit. Dewatering, ventilation, and cooling are important aspects of the mine design at the Project and were investigated in detail with the Feasibility Study. A fully calibrated numerical ground water model was developed, allowing for a comprehensive assessment of the hydrogeological regime and optimization of the underground mine dewatering requirements, and development of a site-wide water balance. Precedents from existing mining operations that manage and control similar underground mining environments were benchmarked against and have validated Bluestone’s assumptions and approach.

Key differences between the PEA and Feasibility Study include:

  • Total ounces in the mineral resource remain virtually unchanged; however, slightly fewer ounces converted into the mine plan with the refined resource model. An infill drilling program is currently underway to convert Inferred Resources into Measured and Indicated Resources.
  • Operating costs were affected with a shift in the split of mining methods driven from the new mine plan, resulting in an increase to the amount of cut and fill mining.
  • With a better understanding of the groundwater conditions, operating costs increased to ensure the mine dewatering could be fully and properly managed in parallel with the mine plan. In addition, enhanced ventilation has been included to ensure underground mine air quality and temperature are consistently managed.
  • Additional pre-production and sustaining capital requirements are also necessary for dewatering infrastructure.

FEASIBILTY STUDY DETAILS

Geology and Mineral Resource Estimate

The Project is a classic hot springs-related, low sulphidation epithermal gold-silver deposit comprising a system of moderate to steeply dipping quartz-adularia-calcite veins. The Mineral Resource estimate has a footprint of 800 x 400 meters between elevations of 525 meters and 200 meters above sea level. The bulk of the high-grade veins occur as two upward-flared vein arrays (North and South Zones) that converge at depth into master feeder veins, that appear to define a positive flower structure. Most of the veins are hosted in a gently dipping sequence of siltstones, limestones, conglomerates, and andesitic tuffs (Mita Unit) that are overlain by approximately 100 meters of silicified conglomerates and sinter beds (Salinas Unit) representing an un-eroded paleosurface that forms the low-lying hill at the Project. The Salinas rocks are host to a tabular zone of low-grade disseminated gold and silver mineralization.

The updated Mineral Resource estimate is the result of 128,220 meters of drilling at the project (580 drill holes) by previous operators and Bluestone, including 104 holes (18,033 meters) drilled from underground. The Mineral Resource estimate is based on a new and robust geological and structural model, supported by over 3 kilometers of underground infrastructure.

The Mineral Resource estimate was disclosed in a press release dated September 11, 2018.

Mineral Reserves and Mining

The estimated Mineral Reserves presented by reserve class are shown in the following table. The overall diluted gold grade of the mineralized material going to the mill is estimated at 8.5 g/t.

These Mineral Reserves support an initial 8-year mine life. An infill drill program is currently underway (as per the press release dated November 13, 2018) that is targeting the conversion of Inferred Resources into Measured and Indicated Resources. The Project deposit is expected to be accessed by the existing 3.2 kilometers of underground development. The current decline will serve as the primary access to the mine for personnel, materials, and haulage of mineralized material to the plant site. Annual ore production of up to 460,000 tonnes is planned from a combination of long-hole stoping and cut and fill mining methods.

Dewatering, ventilation, and cooling are important aspects of the mine design at the Project. The water in the immediate mine area will be lowered by a series of surface and underground dewatering wells. Any remaining water underground will be captured and pumped to surface through the collection at underground sumps. Currently, approximately 40% of the Mineral Reserves sit above the water table and are accessible through the 3.2 kilometers of lateral underground development. Precedents from existing mining operations that manage and control similar underground mining environments have validated Bluestone’s approach and assumptions.

In addition to the existing surface dewatering wells, a series of new dewatering wells are planned to draw down the water around the deposit. A portion of the mine water will be treated and discharged, and the balance disposed of through a series of new reinjection wells.

Initial estimates of dewatering rates to meet the needs of the mine plan were estimated from a detailed numerical ground water model, which included steady state and transient state calibration.

The number of wells required to achieve the desired dewatering will comprise five of the existing wells and eight new dewatering wells.

Processing

The Feasibility Study is based on a process plant capable of treating 1,250 tonnes per day of ore. The comminution circuit includes three-stage crushing and two stage ball mill grinding to produce a target grind size of 80% passing 50 microns. Processing will incorporate a rate of 460,000 dry tonnes per year at an average feed grade of 8.5 g/t gold and 32.2 g/t silver.  Based on recent test work, the optimized flowsheet includes pre-oxidation, a 48-hour leach circuit, followed by a 6-hour carbon-in-pulp adsorption circuit with expected recoveries of 96% gold and 85% silver.

Capital & Operating Costs

Initial capital to fund construction and commissioning is estimated at $196 million. The Project benefits from a significant amount of underground development already in place, a water treatment plant, maintenance and warehouse facilities, offices, and communications. The project is located eight kilometres from the Pan American Highway and an under-utilized electrical substation.

Infrastructure

The Project is located approximately 160 kilometers southeast of Guatemala City. The site is accessible via the Pan-American Highway (CA1) through the town of Asunción Mita. Existing infrastructure is in place to provide year-round access, a new 5 kilometer-long access road and 8.2 kilometer power transmission line will be installed as part of the construction of the Project. The topography is flat with rolling hills. Guatemala has 400 kilometers of coastline, with the closest deep-water port (Puerto Quetzal) on the Pacific Ocean, which is connected by good highway access to the Project.

Corporate Social Responsibility and Economic Benefits

Bluestone is a values-based company where environmental and community stewardship are integral to our core values. We live in the communities we operate in and follow best practices to minimize impacts to the environment. The Project and local team have been part of the local community for over a decade and Bluestone is active in engaging with the stakeholders around the Project. 

The development of the Project is expected to provide substantial economic benefits to Guatemala, both locally and at a national level. During the 18 to 24-month construction period, the Project is expected to generate direct employment of 500+ people, and once in operation, direct employment of 400+ people. It is estimated that during production the mine will inject approximately $60 million annually and contribute approximately $500 million to the Guatemalan economy through direct employee wages, consumables, taxes, and royalties. In addition, the project is expected to generate several hundred additional indirect jobs with local suppliers and service providers.

A key priority will be to train and develop skills of the local workforce as the Project advances which is in-line with Bluestone’s philosophy of working with our stakeholders and communities.

In 2018 Bluestone engaged a third -party consultant to lead an updated social baseline assessment as well as an IFC performance gap assessment. Bluestone is committed to following best practices and international standards.

Next Steps

With the Feasibility Study now completed, Bluestone will advance the Project toward development over the next few quarters. Key next steps include:

  • Optimization and trade-off studies to be undertaken.
  • Infill drilling as part of the resource conversion and expansion program currently underway.
  • Commence engineering and design activities.
  • Update resource estimate and mine plan.
  • Advance project financing activities.

Technical Information

The Technical Report summarizing the results of the Feasibility Study is being prepared in accordance with NI 43-101 and will be filed under the Company’s profile on SEDAR within 45 days of this press release. The Qualified Persons have reviewed and verified that the technical information in respect to the Feasibility Study in this press release is accurate and approve the written disclosure of such information.

Other than as set forth above, all scientific and technical information contained in this press release has been reviewed, verified, and approved by David Gunning, P.Eng., a mining engineer, and the Vice President Operations, or David Cass, P.Geo., and the Company’s Vice President Exploration, both Qualified Persons under NI 43-101.

About Bluestone Resources

Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100%-owned Cerro Blanco Gold and Mita Geothermal projects located in Guatemala. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.

Forward Looking Statements

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 Bluestone Resources Inc. (“Bluestone” or the “Company”) believes, expects or anticipates will or may occur in the future including, without limitation: the conversion of the inferred mineral resources; increasing the amount of measured mineral and indicated mineral resources; the proposed timeline and benefits of further drilling; the proposed timeline and benefits of the Feasibility Study; statements about the Company’s plans for its mineral properties; Bluestone’s business strategy, plans and outlook; the future financial or operating performance of Bluestone; capital expenditures, corporate general and administration expenses and exploration and development expenses; expected working capital requirements; the future financial estimates of the Cerro Blanco Project economics, including estimates of capital costs of constructing mine facilities and bringing a mine into production and of sustaining capital costs, estimates of operating costs and total costs, net present value and economic returns; proposed production timelines and rates; funding availability; resource estimates; and future exploration and operating plans are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to Bluestone and often use words such as “expects”, “plans”, “anticipates”, “estimates”, “intends”, “may” or variations thereof or the negative of any of these terms.

All forward-looking statements are made based on the Company’s current beliefs as well as various assumptions made by them and information currently available to them.  Generally, these assumptions include, among others: the ability of Bluestone to carry on exploration and development activities; the price of gold, silver and other metals; there being no material variations in the current tax and regulatory environment; the exchange rates among the Canadian dollar, Guatemalan quetzal and the United States dollar remaining consistent with current levels; the presence of and continuity of metals at the Cerro Blanco Project at estimated grades; the availability of personnel, machinery and equipment at estimated prices and within estimated delivery times; metals sales prices and exchange rates assumed; appropriate discount rates applied to the cash flows in economic analyses; tax rates and royalty rates applicable to the proposed mining operation; the availability of acceptable financing; anticipated mining losses and dilution; success in realizing proposed operations; anticipated timelines for community consultations and the impact of those consultations on the regulatory approval process.

Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company 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 relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; risks and uncertainties related to expected production rates, timing and amount of production and total costs of production; risks and uncertainties related to ability to obtain 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; risks associated with geopolitical uncertainty and political and economic instability in Guatemala; risks and uncertainties related to interruptions in production; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; uncertain political and economic environments and relationships with local communities; variations in rates of recovery and extraction; developments in world metals markets; risks related to fluctuations in currency exchange rates; as well as those factors discussed under “Risk Factors” in the Company’s Amended and Restated Annual Information Form.

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-IFRS Financial Performance Measures

The Company has included certain non-International Financial Reporting Standards (“IFRS”) measures in this new release. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, 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-IFRS 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 IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.

 

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