Belo Sun Provides a Progress Update on the Volta Grande Gold Project
TORONTO, July 23, 2018 -- Belo Sun Mining Corp. (TSX:BSX) (“Belo Sun” or the “Company”) is pleased to provide a general update on the Company’s activities and progress.
Indigenous Study
The indigenous study has been advancing for the Volta Grande Gold Project. The Company has been working in cooperation with FUNAI (Fundação Nacional do Índio) and the Arara da Volta Grande and Juruna-Paquiçamba Indigenous communities (see the Company’s press release dated December 6, 2017). The work is progressing positively and cooperatively. Meetings and consultations will continue as per the prescribed protocols.
Belo Sun has established an Advisory Board for Indigenous, Community and Environmental Affairs (ICEA) headed by General Franklimberg Rodrigo de Freitas, former president of FUNAI. The Advisory Board’s creation underscores the Company’s commitment to the importance of the Indigenous people and local community participation with the Volta Grande Gold Project. The Advisory Board’s role is to provide strategic assistance in completing the Indigenous study and advising on matters pertaining to the environment, local communities and Indigenous peoples during the construction and operating stages of the Volta Grande Gold Project (see the Company’s press release dated July 23, 2018).
Geology
The geology team has completed the re-logging of drill core and the compilation of accumulated data in mineral resource areas peripheral to the Volta Grande Gold Project. These areas were not included in the NI 43-101 mineral resources used in the 2015 Feasibility Study and represent additional growth potential opportunities with more exploration and infill drilling. Drill programs are being mapped out to potentially further expand the mineral resource in each area as soon as the Company resumes its field work.
The current NI 43-101 mineral reserve for the mining project is shown below (Table 1) and is included in the NI 43-101 mineral resource statement (Table 2):
Table 1
Volta Grande Project Proven and Probable Reserves*
| Classification | Tonnes (t) | Gold Grade (g/t) | Contained Gold (oz) |
| Proven | 41,757,000 | 1.07 | 1,442,000 |
| Probable | 74,212,000 | 0.98 | 2,346,000 |
| Proven + Probable | 115,969,000 | 1.02 | 3,788,000 |
* The mineral reserve estimate is as of March 25, 2015 and is based on the new mineral resource estimate listed in table2. It is found in the NI-43-101 report “Volta Grande Project, Pará, Brazil. Feasibility Study Report” dated May 08, 2015. The mineral reserve calculation was completed under the supervision of Gordon Zurowski, P.Eng of AGP Mining Consultants Inc, who is a Qualified Person as defined under NI 43-101. Mineral reserves are stated within the final design pit based on a $1020 gold price pit shell with a $1,200 gold price for revenue. The cutoff grade was 0.37 g/t for Ouro Verde and 0.40 g/t for Grota Seca. The mining cost averaged $10.90/tonne milled, processing was $7.25/tonne milled and G&A was $0.84/tonne milled. The process recovery averaged 93%. The exchange rate assumption applied was R$3.10 equal to US$1.00 The Feasibility Study only considers the Volta Grande open pit mineralized zones.
Table 2
Volta Grande Mineral Resource Statement (Excluding Greia and South Block)**
| Classification | Tonnes (t) | Gold Grade (g/t) | Contained Gold (oz) |
| Measured &Indicated | 156,590,000 | 0.99 | 4,954,000 |
| Inferred | 37,750,000 | 0.85 | 1,033,000 |
** The mineral resource statement was prepared by SRK Consulting (Canada) Inc. The effective date of the mineral resource statement is March 16, 2015. It is found in the NI-43-101 report “Volta Grande Project, Pará, Brazil. Feasibility Study Report” dated May 8, 2015. The mineral resource was completed under the supervision of Dr Oy Leuangthong, P.Eng, and Dr. Jean-Francois Couture, P.Geo. of SRK Consulting (Canada) Inc, who are Qualified Person as defined under NI 43-101.
Mineral resources are not mineral reserves and have not 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 0.4 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.
South Block:
The update of the geological model for the South Block has been completed. The South Block mineralized zone is located approximately 8 km from the planned location process plant for the Volta Grande Project.
The current NI 43-101 mineral resource for the South Block is shown below in Table 3:
Table 3
South Block, Pit Constrained Mineral Resource***
| Classification | Tonnes (t) | Gold Grade (g/t) | Contained Gold (oz) |
| Indicated | 2,503,000 | 3.06 | 246,000 |
| Inferred | 2,921,000 | 3.94 | 370,000 |
*** Audited mineral resource statement prepared by SRK Consulting (Canada) Inc. The effective date of the audited mineral resource statement is March 16,2015. It is found in the NI-43-101 report “Volta Grande Project, Pará, Brazil. Feasibility Study Report” dated May 08, 2015. The mineral resource was completed under the supervision of Dr Oy Leuangthong, P.Eng, and Dr. Jean-Francois Couture, P.Geo, of SRK Consulting (Canada) Inc, who are Qualified Person as defined under NI 43-101.
Mineral resources are not mineral reserves and have not 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.
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,
Greia – Alto Alegre:
The re-log/compilation process is in progress for Greia / Alto Alegre. This mineral resource is located immediately north of the Volta Grande Project’s pit.
The current NI 43-101 mineral resource for the Greia / Alto Alegre is shown below in Table 4:
Table 4
Greia Mineral Resource****
| Classification | Tonnes (t) | Gold Grade (g/t) | Contained Gold (oz) |
| Inferred | 2,020,000 | 1.79 | 115,000 |
**** The mineral resource statement was prepared by SRK Consulting (Canada) Inc. The effective date of the mineral resource statement is March 16, 2015. It is found in the NI-43-101 report “Volta Grande Project, Pará, Brazil. Feasibility Study Report” dated May 8, 2015. The mineral resource was completed under the supervision of Dr Oy Leuangthong, P.Eng, and Dr. Jean-Francois Couture, P.Geo. of SRK Consulting (Canada) Inc, who are Qualified Person as defined under NI 43-101.
Mineral resources are not mineral reserves and have not 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 0.4 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.
Engineering
Belo Sun has been working closely with the process plant provider in establishing terms for the execution of the facility at the Volta Grande Gold Project once the Construction Licence (LI) is reinstated. The Company continues to advance work related to the LI conditions, specifically related to the environment, community, operating standards and documentation. The Company recently awarded a contract to Pimenta de Avila Consultoria Ltda regarding engineering for the advancement of the Volta Grande Project.
About the Company
Belo Sun Mining Corp. is a Canadian-based mineral exploration and development company with a portfolio of gold-focused properties in Brazil. Belo Sun’s primary focus is advancing to construction and operation of its 100% owned Volta Grande Gold Project, located in Para State, Brazil. Belo Sun trades on the TSX under the symbol “BSX”. For more information about Belo Sun please visit www.belosun.com.
The technical information related to geology in this press release has been reviewed and approved by Stéphane Amireault, MScA., P. Eng., VP of Exploration for Belo Sun and a Qualified Person as defined by National Instrument 43-101. The scientific and technical information contained in this news release not related to geology pertaining to the Volta Grande Project has been reviewed and approved by the following Qualified Persons under NI 43-101 who consent to the inclusion of their names in this release: Dr. Oy Leuangthong, P.Eng (Mineral Resource) of SRK Consulting (Canada) Inc. and Gordon Zurowski, P.Eng (Mining) of AGP Mining Consultants Inc., each of whom are independent of Belo Sun.
For further information, please contact:
Peter Tagliamonte, President and CEO
Belo Sun Mining Corp.
(416) 309-2137
Caution regarding 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 results of the feasibility study, the capital and operating cost estimates, the mineral reserve and mineral resource estimates, the anticipated timetable, permitting, ability to finance the project, next steps for the property, progress in development of mineral properties, projected capital and operating expenses, future metal prices, the future financial or operating performance of the Company and anticipated production schedule. 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 but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. 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.
