Bluestone Resources President, CEO Darren Klinck | RICH TV LIVE

Bluestone Resources President, CEO Darren Klinck | RICH TV LIVE

Hi how you doing today this is rich and we have a rich tv live and i’m here with a very special guest it is darren clink the ceo of blue stone resources inc how you doing today darren very good rich great to be here great to have you here love to know more about your company today so why don’t we just get started by you telling us a little bit about blue stone

Resources english yeah no pleasure so so blue stone is a publicly listed company trading on the toronto stock exchange venture as well as the otcqb we are focused on obviously in the in the mining and mineral space and specifically on gold and precious metals and we have a very exciting project located in the southeast part of guatemala that were rapidly advancing

And soon we’ll be kicking off construction development of a high-grade gold light that’s great can you tell us a little bit more about some of your projects so that the core project really for us is the cerro blanco gold project and that’s located in the hootie epi’ department in the southeastern part of guatemala both three hours down the pan-american highway

From guatemala city it’s a high grade low sulfonation epithermal system which rather uniquely has had a significant amount of previous investment by previous owners and in fact the previous owner that we had acquired it from gold corp one of the largest gold companies in the world that was recently acquired by newmont in fact and so the cerro blanco project has had

More than 200 million dollars invested in over the last ten to fifteen years really from discovery stage through the geology engineering study phase and that’s all culminated in us completing a feasibility study earlier this year in january which demonstrated a very robust project that we’re now in the midst of putting the project financing package together to kick

Off construction and development next year that’s great now you mentioned guatemala a few times why a market like what amala well at the end of the day in the resources business and you know to produce things that we need in our everyday life you have to go where mother nature put them and and so mother nature is deposited a great bail to rocks through central

And south america that of course continues up into mexico mexico they’ve been my name precious metals there for well over 500 years when this you know predating the spanish arrival and so this is the same belt of geology very perspective and and we’re really excited about it we think it’s a great time to to be there we we’ve got the best of both worlds really

Geologic endowment geologic prospectivity but of course then also the head start with the more than 200 million dollars have invested in this project that allows us to really kickstart at a time when you know from from market perspective and from an environment perspective it’s a great time to be looking at precious metals absolutely agree with you 100 percent

I know our members have been very very interested in precious metals recently with the price of gold going up and the price of silver going up now when you’re working with a community like and country like guatemala there’s got to be a lot of work that you’re doing to support local communities how are you guys doing that work well it’s part of our business and

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I don’t think it really matters whether or not it’s guatemala or its australia or its canada the united states at the end of the day you know we are a guest we are a partner with our our local communities our local stakeholders our government partners our employees of course and one of the things around blue stone that we put in place very early on and in fact

Blue stone is really only a company that’s been in its current form for just over two years so relatively new is it sat down with our local employees in guatemala and established really a set of values values that were non-negotiable and those are respect integrity teamwork excellence and accountability and those form really the foundations of our business

And of course respect is an absolute key one no matter where you are or what you’re doing particularly when you have various different stakeholder groups so we’re very much focused on our relationships on our social acceptance i often say it’s the one thing that you can’t engineer and and that sort of strong relationship the ability to work closely with our

Partners alongside really creating wealth and opportunities for local communities and for the people of guatemala is what this is all about at the end of the day we’re taking things out of the ground and we’re taking resource capital and we’re turning into human capital and that’s really our strategy and that’s what we’re embarking on here now as we move forward

Fantastic now one of the things that our investors really want to know about are your production forecasts so what are your production forecasts and your overall thoughts on the current precious metals market very interesting time no doubt you know in the resources space over the last few years have been perhaps a bit more on the down cycle of course it is very

Much a cyclical business and so we think see things move up and down this project again because it’s a high-grade project the average grade of the deposit is around 10 grams per tonne will produce between 100 150 thousand ounces of gold per annum now when you mark march that up i match it up really with the the overall cost of production very robust margins and

In fact producing gold at less than $600 an ounce at today’s gold price and north of $1400 an ounce that’s a great margin and that’s a great margin whether or not you’re producing gold bars or cars or tennis shoes and so it’s a great business with great great cash flows as we bring this asset on and i think when you look at the precious metal space no doubt some

Of the smartest minds out there over the last sort of three or four months have started a pivot you know you’re starting to hear more and more around some of these very successful investors and moving away from the the more broad equity markets in the united states as an example and pegging gold as being one of the better investment places here over the next

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Year or two and so there’s uncertainty you see interest rates possibly starting to come down uncertainty around a potential correction or recession and just like that you know in gold’s you know gone up ten fifteen percent now in your most recent corporate update the company suggests that blue stone resources is very close to development kick off can you tell

Us a little bit more about that yeah so really all the the technical work that’s been ongoing here over the last couple of years really the last 18 months is we put together our feasibility study as i said demonstrated a very good outcome with regards to what this project will look like when it’s brought on and since that time in in january we’ve been focus on

Upgrading the resource so there’s an infill program that we’ve been working on that’s going to help i think in terms of moving inferred resources into indicated and further adding additional mind life but now the focus is very much on putting the project finance in place and so we’re still hopeful that as we’ve laid out earlier in the year that we would have at

Least a first tranche of financing in place by the end of this year that allows us to kick the development off and by the end of 2021 which is not that far away we’ll be producing gold and making that important transition from developer explorer into constructor and operator and that’s of course when it becomes a real business it starts generating cash flow and

As i said with the sort of margins that we’re talking about will be some of the best margins in the industry wow that’s impressive now we’re talking about a very competitive industry so what makes blue stone resources stand out amongst all the competitors it’s the deposit it’s what mother nature is really put there this project this company will have the ability

To generate more free cash flow in the first year of annual production than the market capitalization of the company today it’s it’s unparalleled and super exciting and it’s a reason why you know the really the large majority of the management team many of us have left other bigger companies with you know senior role senior executive roles because at the end of

The day as i said mother nature’s not making any more of these deposits so it’s a very exciting sort of asset that is you know for many years has been tied up in a bigger company that really that the management decision was made that it wasn’t wasn’t going to be a focus because it wasn’t big enough but a blue stone were focused on profitability and cash flows and

This is a very unique opportunity for us to really launch a company on the back of one of the most profitable gold development projects in the world today that’s impressive now you may have already answered this question but if there’s one thing you want shareholders to know about blue stone resources what would it be it’s the quality of the asset the margin as


I said i mean any business it doesn’t matter what you’re doing you need to generate free cash flow and and this is ultimately a foundation for for a company like blue stone to really build from and a unique opportunity from any of us in our careers as well it’s not very often you get a chance to get your hands on an asset like this and obviously we’ve had great

Support from our shareholders we’re backed by some of the most well known and smartest investors in the space including the lending family and the lending family has been hugely successful in the mining and mineral space all over the world backing management teams and companies for good assets because again it’s it’s you can’t create that that’s mother nature’s

Job and so you want good assets because good assets allow you to to build companies and and generate good cash flows and generate very strong ecosystems in and around those assets as well in the various countries that these assets are located that’s great and the way things are going it seems as though you guys are primed for a huge 2019 can you kind of give us

An idea of what is to come for the next six months it’s already been a huge start to the year no doubt with all the deliverables we’ve been able to demonstrate but now i mean with with the focus on the project financing getting the project financing delivered and continuing that moving along i’m quite confident that we’ll get the first tranche of financing and

By the end of the year and allow us then to kick off this project and as i said those important steps moving towards an operation so far this year we’ve put out i think some of the best drill results that demonstrate the quality of this project over the last six months high-grade gold results and those those results are important because they’re they’re really

Targeting areas on veins that we think we can upgrade from an inferred resource category and to indicate it and that ultimately will be important once the mine planners getting an update the mine plan as we move forward and so that’s an important part because we’re effectively seeing we’re increasing the confidence on on the resources which will add additional mind

Life and ultimately we would hope additional cash flows and profitability and on the back of that expect to provide a resource update on the first on the northern part of the deposit that we’ve been targeting over the last six months and we would expect to see that in the fall so so lots of news flow the numbers you know so far looked great and then ultimately

You know putting the financing in place to them you know kickoff the development early next year that’s great now the last question what is the best way for shareholders to get in touch with the company yeah we’d welcome any sort of inbound queries so definitely through the email is a good way info at bluestone resources ca or through our website resources inc

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Bluestone Resources President, CEO Darren Klinck | RICH TV LIVE By RICH TV LIVE

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