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TORONTO, ONTARIO -- (Marketwired) -- 05/06/13 -- Belo Sun Mining Corp. (TSX: BSX) has completed a positive Pre-feasibility Study ("PFS") for its 100% owned Volta Grande Project (the "Project" or "Volta Grande") located in Para state in central Brazil. The PFS was compiled by AMEC Americas Limited for Belo Sun with inputs from a number of other specialised consultants under management of Belo Sun and is based on development of the mineral resource estimate released in December 2012, excluding inferred resources (see news release dated December 18, 2012).
The following table summarizes the after tax results of the PFS:
Project Performance
----------------------------------------------------------------------------Project Data Prefeasibility Results----------------------------------------------------------------------------Production DataLife of mine 10 YearsAnnual Mine Throughput 7 million tpyMetallurgical Recovery Au 94%Average Annual Gold Production 313,100 oz/yAverage Waste to Ore Strip Ratio 6.88:1Average Grade of M&I Resource 1.72 g/tAverage Grade after mining dilution 1.48 g/tLife of Mine Operating Costs/Tonne Ore MilledMining US$17.36Processing US$10.50General and Administration US$2.52Total Operating Cost/Ounce of Gold US$681.90Cash Operating Costs including Royalties US$711.50Capital CostInitial Investment Capital US$ 749,114,400Average Sustaining Capital over life of mine including closure costs US$19.62 million per annum----------------------------------------------------------------------------
Project Overview
Infrastructure
The Project is located in Para State in central Brazil approximately 60 kilometres south- east of the city of Altamira. The climate at Volta Grande is tropical, with a rainy season from January to April and a dry season extending from May to December. The mean temperature is nearly the same (25 degrees C to 30 degrees C) throughout the year. The relative humidity ranges from about 65% to 85%. Access to site will be via an existing 60 kilometer upgraded gravel road. Power for the Project will originate from Belo Monte's Pimental distribution station requiring the construction of a 20 kilometers 230 kV high tension power line. Water sufficient to meet mining needs is readily available at the Project site.
In addition to the mine and process facilities, a camp will be established at the Project site to house workers on a shift rotation basis. Provision has been made for the storage of critical supplies on site.
Open Pit Mineral Reserves
The mineral reserves resulting from the PFS are based on the December 2012 updated mineral resource (see press release dated December 18, 2012). Mineral resources that are not mineral reserves do not have demonstrated economic viability. An external mining dilution factor of 16% at zero grade was applied to give a diluted run of mine grade of 1.48 g/t gold and a cutoff grade of 0.35 g/t Au. Recoveries are based on metallurgical testing that indicates a 94% gold recovery. The pit design was based on an optimised pit shell using a US$ 910/oz gold price.
---------------------------------------------------------------------------- Total Mineral Reserve Estimate as at January 31, 2013---------------------------------------------------------------------------- Contained Recoverable Mass Au Gold Gold----------------------------------------------------------------------------Mineral Reserves (kt) (g/t) (kOz) (kOz)--------------------------------------------------------------------------------------------------------------------------------------------------------Proven Reserve 40,185 1.47 1,903 1,789Probable Reserve 19,081 1.49 911 856Total Reserve 59,266 1.48 2,814 2,645----------------------------------------------------------------------------The Qualified Person for the Mineral Reserve estimate is Mr. Carlos Guzman,director of NCL Brasil Ltda., Registered Member of the Chilean MiningCommission and Fellow of the AusIMM. and is independent of Belo Sun.
