Bluestone Resources (TSXV: BSR; US-OTC: BBSRF) has tabled a feasibility study for its Cerro Blanco gold project in Guatemala that states the project would produce 902,000 oz. of gold over an eight-year mine life. It would cost an initial US$196 million and achieve after tax payback in 2.1 years.
The project has a US$241 million after tax net present value at a 5% discount rate and a 34% after tax internal rate of return. It would produce an average 146,000 oz. of gold over its first three years, generating US$91 million in free cash flow per year.
The project would produce at US$579 per oz. of gold all-in sustaining costs (AISC), which, according to Bluestone, places it in the bottom end of the lowest quartile of the global cost curve.
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