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Gold mining firm exploring next steps with Mita geothermal project, Guatemala

Pacaya and Agua volcanoes as seen from Guatemala City (source: Commons/ wikimedia, Sir James)
Alexander Richter 5 Oct 2017

Bluestone Resources, the buyer of the Mita geothermal project in Guatemala is now exploring options for further work on the project that could provide power to nearby gold mining operations.

Over the past we have reported on the Mita geothermal project in Guatemala, mostly in connection with it being sold to Bluestone Resources Inc. in May of 2017 together with a gold resource in the country.

The buyer, Bluestone Resources recently reported on its Cerro Blanco gold project in Guatemala. There the company has worked with a geologist on a structural review of the project, which will also provide a better understanding of the Mita geothermal project in proximity to the gold project.

The company sees two options for further development. This could be either a development in conjunction with the gold mining operation at Cerro Blanco, or through a development in a strategic partnership.

The Mita geothermal project is located near the Cerro Blanco gold project and a positive feasibility study was completed in 2013.

Top date around $60 million have been invested and the project is being explored and advanced by Blue Stone Resources. In the past there have been drilled several geothermal exploration and production wells. There is also a 50-year license to build and operate a 50 MW geothermal plant that has been granted. For electricity transmission, the project is only 8 km to grid power which could feed into the privatized electrical sector in the country.

The EIA for the Cerro Blanco geothermal power was approved by the environmental regulators (MARN) in 2010. Documents for the construction permit were issued to the government at the end of 2011, and a construction permit was expected by mid-2012.

In 2011 three successful energy production wells and one reinjection well were completed.

For an initial work programme, Bluestone proposes extended flow testing and reservoir engineering.

Source: Company release