Belo Sun Increases Measured and Indicated Resources to 4.1 Million Ounces of Gold Plus Inferred Resources of 2.8 Million Ounces of Gold at Its Volta Grande Gold Project, Brazil
TORONTO, ONTARIO -- (Marketwire) -- 12/18/12 -- Belo Sun Mining Corp. (TSX: BSX) (the "Company" or "Belo Sun") has completed an updated, independently audited mineral resource statement for its 100% owned Volta Grande gold project in Para State, Brazil. This updated mineral resource statement includes results from 273 additional drill holes (covering 75,482 metres), for which the results were received prior to October 30, 2012. These drill holes were completed subsequent to the mineral resource statement announced in April 2012.
These results were audited by SRK Consulting (Canada) Inc and SRK Consultores do Brasil Ltda. and in their memo they commented, "It is interesting to note that this additional drilling represents an increase of approximately 40 percent of the drilling database, and yields approximately 44 percent more Measured and Indicated gold ounces and 20 percent more Inferred ounces. The closer spaced boreholes drilled during that period increased the confidence in the geological interpretation and the continuity of grade and thus delivered a positive impact to the mineral resource evaluation."
Comparison Between July 2012 Technical Report and December 2012 Mineral Resource Statement
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July 2012 December 2012
Quantity Grade Contained Quantity Grade Contained
Gold Gold
Classification ('000 (gpt) ('000 ('000 (gpt) ('000
Tonnes) Gold (oz) Tonnes) Gold (oz)
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Measured 34,281 1.71 1,887 42,422 1.73 2,356
Indicated 18,170 1.65 966 31,360 1.73 1,746
Measured + Indicated 52,451 1.69 2,852 73,782 1.73 4,103
Inferred 39,990 1.81 2,322 44,246 1.96 2,788
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Percentage Difference
Quantity Grade Contained
Gold
Classification ('000 (gpt)
Tonnes) Gold (oz)
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Measured 24% 1% 25%
Indicated 73% 5% 81%
Measured + Indicated 41% 2% 44%
Inferred 11% 8% 20%
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The results represent an important upgrade of Belo Sun's estimated mineral resources for the Volta Grande Project as follows (see Table below for resource estimate details):
-- Measured and Indicated Pit Constrained Mineral Resources of 4.1 Million
Ounces of gold at an average grade of 1.73 g/t Au, which represents an
increase of 44% in these resource categories (from 2.8 Million Ounces)
and further improvement in average gold grade for these categories (from
1.69 g/t Au).
-- Inferred Pit Constrained Mineral Resources of 2.6 Million Ounces of gold
at an average grade of 1.89 g/t Au, which represents a 16% increase in
the estimated inferred resources (from 2.2 Million Ounces at 1.75 g/t
Au).
-- Underground resources of 21,000 ounces of gold at an average grade of
3.26 g/t Au in the Indicated category and 229,000 ounces at an average
grade of 3.37 g/t Au in the Inferred category.
Helio Diniz, Vice President Exploration of the Company, commented: "This is another outstanding achievement by Belo Sun's exploration team. The results have expanded and upgraded the mineral resources at the Volta Grande Gold Deposit. Moreover, the deposits remain open for further expansion, further supporting the concept that the Volta Grande deposits are part of an extensive mineralized system. We have no doubt that this will be one of the largest gold deposits discovered in Brazil."
This mineral resource estimate will be the basis for the preliminary feasibility studies being carried out by AMEC Minproc Engenharia e Consultoria Limitada, which are expected to be completed in Q1 2013. The mineral resource model was constructed by Belo Sun and was audited by SRK Consulting (Canada) Inc. (SRK) using the same audit methodology as for the previous audited mineral resource statement.
The audited mineral resource statement is reported in compliance with National Instrument 43- 101 guidelines; the corresponding Technical Report will be filed under the Company's profile on SEDAR in due course. The mineral resource model was completed by the Belo Sun team under supervision of David Gower, P.Geo, and Carlos Costa, P.Geo. each of whom is a Qualified Person as defined by National Instrument 43-101. The mineral resource model was audited by Dr. Oy Leuangthong, P.Eng, and Dr. Lars Weiershauser, P.Geo of SRK who are Independent Qualified Persons as defined by National Instrument 43-101.
Some of the more relevant parameters utilized in the current resource estimate are listed below:
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Parameter Units
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Gold Price US$/Oz $1,400
Cut Off Grade g/t Au 0.5 (OP) 2.0 (UG)
Block Dimensions meters 12.5 (L) x 5 (W) x 10 (H)
Composite length meters 1.0
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Ouro Verde Grota Seca South Block Total
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Composites No. 11,438 15,602 431 27,471
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Holes No. 259 467 62 788
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Drilling meters 69,474.02 109,884.36 14,274.64 193,633.02
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The Company is continuing the drilling program to upgrade and expand mineral resources further, as both deposits remain open at depth and along strike.
The Audited Mineral Resource Statement (1) for Volta Grande is presented below
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VOLTA GRANDE RESOURCES ESTIMATE (DEC MEASURED +
2012) MEASURED INDICATED INDICATED INFERRED
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Ouro Verde Pit Tonnes ('000s) 20,789 17,034 37,823 18,640
Constrained Grade (g/t Au) 1.85 1.69 1.78 1.71
Ounces ('000s) 1,237 926 2,162 1,025
Grota Seca Pit Tonnes ('000s) 21,629 14,133 35,762 18,124
Constrained Grade (g/t Au) 1.61 1.77 1.67 1.83
Ounces ('000s) 1,120 804 1,924 1,066
South Block Pit Tonnes ('000s) 5,368
Constrained Grade (g/t Au) 2.73
Ounces ('000s) 471
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Total Pit Tonnes ('000s) 42,418 31,167 73,585 42,132
Constrained Grade (g/t Au) 1.73 1.73 1.73 1.89
Ounces ('000s) 2,356 1,730 4,086 2,562
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Ouro Verde Tonnes ('000s) 38 38 954
Underground Grade (g/t Au) 2.78 2.78 2.94
Ounces ('000s) 3 3 90
Grota Seca Tonnes ('000s) 161 161 752
Underground Grade (g/t Au) 3.37 3.37 3.64
Ounces ('000s) 17 17 88
South Block Tonnes ('000s) 408
Underground Grade (g/t Au) 3.89
Ounces ('000s) 51
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Total Tonnes ('000s) 199 199 2,114
Underground Grade (g/t Au) 3.26 3.26 3.37
Ounces ('000s) 21 21 229
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Tonnes ('000s) 42,418 31,366 73,784 44,246
TOTAL Grade (g/t Au) 1.73 1.74 1.73 1.96
Ounces ('000s) 2,356 1,751 4,107 2,791
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(1) Audited mineral resource statement prepared by SRK Consulting (Canada)
Inc. The effective date of the audited mineral resource statement is
December 18, 2012. Mineral resources are not mineral reserves and do
not have demonstrated economic viability. All figures have been
rounded to reflect the relative accuracy of the estimates.
Open pit mineral resources are reported at a cut-off grade of 0.5 g/t
gold, and underground mineral resources are reported at a cut-off
grade of 2.0 g/t gold. Cut-off grades are based on a number of
parameters and assumptions including gold price of US$1,400 per troy
ounce, 94% metallurgical gold recovery for weathered and unweathered
rock, open pit mining costs of US$1.41/tonne, process costs of
US$11.98/ tonne, General & Administrative costs of US$2.89/tonne and
selling costs (refining, transport, insurance and environment) of
US$13.82 per troy ounce.
The quantity and grade of the reported inferred mineral resources are
uncertain in nature and there has been insufficient exploration to
define the inferred mineral resources as indicated or measured mineral
resources and it is uncertain if further exploration will result in
upgrading them to an indicated or measured mineral resource category.
The mineral resources have been classified according to the Canadian
Institute of Mining, Metallurgy and Petroleum Definition Standards for
Mineral Resources and Mineral Reserves (November 2010).
Certain mineral resource estimation parameters:
(a) The gold mineralization envelopes were modelled into wireframe solids
using a 0.5 g/t Au cut-off grade in fresh and saprolite rocks utilizing
vertical and horizontal sections. 3D shells were generated by linking
the sections.
(b) A specific gravity of 2.75 was used for the Grota Seca (GS) and the Ouro
Verde (OV) deposits and 2.77 for the South Block and 1.36 for the
saprolite in both deposits.
(c) Estimations are based on original samples capped at 9 - 40 g/t Au
depending on the resource domain.
(d) The database for the Ouro Verde Deposit includes 45 historical core
boreholes (8,190 metres) and 214 boreholes (61,284 metres) completed and
assayed by Belo Sun since April 2010.
(e) The mineralized zones at the Ouro Verde deposit extend for about 2,400
metres along strike. Eight gold mineralization domains were modelled in
fresh rock, and one saprolite domain was modelled. The gold
mineralization thickness ranges from 2 to 55 metres. The maximum allowed
internal dilution is approximately 3 metres.
(f) The database for the Grota Seca Deposit comprises 11 reverse circulation
and 129 historical core boreholes (24,730 metres) and 48 reverse
circulation and 279 core boreholes (85,155 metres) completed and assayed
by Belo Sun since April 2010.
(g) The mineralized zones at the Grota Seca deposit extend 2,900 metres
along strike. Seven gold mineralization domains were modelled in fresh
rock, and one saprolite domain was modelled. The gold mineralization
thickness ranges from 2 to 70 metres. The maximum allowed internal
dilution is approximately 3 metres.
(h) The database for the South Block Deposits comprises 22 historical core
boreholes (3,370 metres and 40 core boreholes (10,905 metres) completed
and assayed by Belo Sun since April 2010.
(i) The mineralized zones at the South Block Deposits extend discontinuously
for about 1,900 metres along strike. Three gold mineralization domains
were modelled in fresh rock, and one saprolite domain was modelled. The
gold mineralization thickness ranges from 2 to 16 metres. The maximum
allowed internal dilution is approximately 3 metres.
(j) Block model gold grades were estimated using ordinary kriging informed
by 1.0 m capped composites. All estimations are based on a percent block
model with unitary dimension of 12.5 m E, 5.0 m N and 10 m elevation
rotated -17 degrees clockwise in the Ouro Verde and Grota Seca deposits
and -25 degrees in the South Block.
(k) "Open-pit" mineral resources are reported at a cut-off grade of 0.5 g/t
Au. "Underground" mineral resources (outside pit shell) are reported at
a cut-off grade of 2.0 g/t Au.
(l) Measured mineral resources include all mineralized blocks within one
time of the variogram range and informed from a minimum of 3 boreholes
in 3 octants.
(m) Indicated mineral resources include all mineralized blocks within one
time of the variogram range and informed from a minimum of 2 boreholes
using an elliptical search.
(n) Inferred mineral resources include all mineralized blocks estimated
during the first and second estimation runs using full variogram ranges
and blocks estimated within two times of the variogram range and
informed from a minimum of 2 boreholes.
Quality Assurance and Quality Control
The scientific and technical information in this press release has been reviewed and approved by Dr. Jean-Francois Couture, P.Geo (APGO#0196) and Dr. Oy Leuangthong, P.Eng (PEO#90563867) of SRK, Carlos Cravo, P.Geo, Project Manager for Belo Sun and David Gower, P.Geo., an advisor to Belo Sun, who are Qualified Persons as defined by National Instrument 43-101. Dr. Couture and Dr. Leuangthong are independent from Belo Sun. The exploration program is directly supervised by Mr. Carlos Cravo, P.Geo., Belo Sun's Project Manager. Belo Sun's procedures for handling drill core comprise initial description and logging into a Microsoft Access database. Mineralized, suspected mineralized or unmineralized intervals in the drill holes are described in detail and marked for sampling. Core is then cut in half with the right-hand portion of the core put into plastic sample bags and sealed. The left-hand portion is returned to the core box and is stored for future reference or study. Assay standard and "Blank" samples are inserted every 20th sample. These samples are then delivered to ACME Labs sample preparation facility at the Project site. The assay samples are then fine-crushed to better than 80% passing 10 mesh screens, with an assay pulp split of up to 1,000 grams pulverized to better than 85% passing 200 mesh screen. Samples are assayed at ACME Labs in Santiago, Chile, using a 50 gram fire assay procedure with atomic absorption spectrometry finish. Belo Sun implements analytical quality control measures that include the use of control samples (blanks reference material, duplicates). Those procedures were audited by SRK and found to be consistent with generally recognized international industry best practices for pre-development exploration projects.
Cautionary Statement on Forward Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the impact of drill results and this mineral resources estimate on the Company, the projected economics of the project, and the Company's understanding of the project; statements with respect to the development potential and timetable of the project; the estimation of mineral resources; realization of mineral resource estimates; the timing and amount of estimated future exploration; costs of future activities; capital and operating expenditures; success of exploration activities; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at www.sedar.com and on the Company's website at www.belosun.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contacts:
Belo Sun Mining Corp.
Mark Eaton
President and CEO
(416) 309-2137
www.belosun.com