When John Robins, founder and chairman of Kaminak Gold, sold the junior to Goldcorp (TSX: GG; NYSE: GG) for $560 million in 2016, the exploration geologist and entrepreneur let it be known that if at some point the gold major was interested in selling any of its assets, it should let him know.
So when he learned that Goldcorp was planning to divest two projects in southeastern Guatemala – a gold project called Cerro Blanco and an adjacent geothermal energy project – Robins hopped on a flight to Guatemala City to do his due diligence.
What he found impressed him enough to make an offer on behalf of Bluestone Resources(TSXV: BSR) where he held the post of executive chairman.
Goldcorp and Cerro Blanco’s other previous owner, Glamis Gold, had spent US$170 million developing the fully permitted project. (Goldcorp acquired Glamis in 2006.)
Their work included two underground declines, 3 km of underground development, two Alimak vent raises, dewatering infrastructure and a water treatment facility. The previous operators had also completed 155,500 metres of drilling in 522 holes.
A resource estimate confirmed that the deposit contained 1.24 million oz. of gold and 4.47 million oz. of silver (3.7 million indicated tonnes grading 10.2 g/t gold and 36.5 g/t silver).
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