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Belo Sun October 2013

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  • 1. CORPORATE PRESENTATION October 2013 The LARGEST developing GOLD PROJECT in BRAZIL TSX: BSX
  • 2. All statements, other than statements of historical fact, contained or incorporated by reference in this presentation, but not limited to, any information as to the future financial or operating performance of Belo Sun, constitute ‘‘forward-looking information’’ or ‘‘forward-looking statements’’ within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements include, without limitation, statements with respect to: possible events, the future price of gold, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of projects and new deposits, success of exploration, development and mining activities, permitting timelines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. The words “anticipates”, ‘‘plans’’, ‘‘expects’’, “indicative”, “intend”, ‘‘scheduled’’, “timeline”, ‘‘estimates’’, ‘‘forecasts”, “guidance”, “opportunity”, “outlook”, “potential”, “projected”, “schedule”, “seek”, “strategy”, “study” (including, without limitation, as may be qualified by “feasibility” and “pre-feasibility”), “targets”, “models”, or ‘‘believes’’, or variations of or similar such words and phrases or statements that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, or ‘‘should’’, ‘‘might’’, or ‘‘will be taken’’, ‘‘occur’’ or ‘‘be achieved’’ and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Belo Sun as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates, models and assumptions of Belo Sun referenced, contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our most recently filed Annual Information Form and our full- year 2012 Management’s Discussion and Analysis as well as: (1) there being no significant disruptions affecting the operations of Belo Sun or any entity in which it now or hereafter directly or indirectly holds an investment, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; (2) political and legal developments in Brazil being consistent with Belo Sun’s current expectations; (3) the exchange rate between the Canadian dollar, Brazil Real and the U.S. dollar being approximately consistent with current levels; (4) certain price assumptions for gold; (5) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) production and cost of sales forecasts for Belo Sun, and entities in which it now or hereafter directly or indirectly holds an investment, meeting expectations; (7) the accuracy of the current mineral reserve and mineral resource estimates of Belo Sun (including but not limited to ore tonnage and ore grade estimates) and any entity in which it now or hereafter directly or indirectly holds an investment; (8) labour and materials costs increasing on a basis consistent with Belo Sun’s current expectations; (9) the viability of the Volta Grande Project (including but not limited to the impact of ore tonnage and grade variability reconciliation analysis) as well as permitting, development and expansion being consistent with Belo Sun’s current expectations; and (10); access to capital markets. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (such as diesel fuel and electricity); increases in the discount rates applied to present value net future cash flows based on country-specific real weighted average cost of capital; declines in the market valuations of peer group gold producers and Belo Sun, and the resulting impact on market price to net asset value multiples; changes in interest rates or gold rates; changes Carlos Costa, P.Geo, an employee of the Company and a qualified person under NI43-101, has reviewed and approved the scientific and technical information herein. Mineral resources that are not mineral reserves do not have demonstrated economic viability. 2TSX: BSX Cautionary Notes
  • 3. 3TSX: BSX BSX Opens TSX April 30th, 2012
  • 4. Volta Grande (5.1 Moz M&I) (2.5 Moz Inf) 4TSX: BSX Key Projects
  • 5. 5 Resource Expansion (2009 to 2013) Verena (Pre BSX) • 170 Drill Holes Included in Resource • 42 Additional Drill Holes Included in Resource • 137 Additional Drill Holes Included in Resource • 112 Additional Drill Holes Included in Resource • 273 Additional Drill Holes Included in Resource Under Present Management • 126 Additional Drill Holes Included in Resource TSX: BSX • 94 Additional Drill Holes Included in Resource Under Present Management
  • 6. 6TSX: BSX Experienced Board & Management BOARD OF DIRECTORS Peter Tagliamonte (Chairman) Engineer Stan Bharti Engineer Jay Hodgson Geologist Clay Hoes Geologist Rui Santos Lawyer Catherine Stretch Director MANAGEMENT BRAZIL OPERATIONS Carlos Costa Geologist (30 years experience) Ricardo Lopes Geologist (27 years experience) Omar Antunes Chemical Engineer (30 years experience) Octavio Guimaraes Engineer (20 years experience) TORONTO OFFICE Ian Pritchard Chief Operating Officer Ryan Ptolemy Chief Financial Officer Mike Hoffman Vice President of Engineering Pat Gleeson Corporate Secretary Simon Marcotte VP Corporate Development Helia Bento Marketing Manager Mark Eaton Director, President & CEO (25 years Capital Markets experience) Helio Diniz Director, VP Exploration (30 years experience)
  • 7. Shares Outstanding No. 265.9 million Fully Diluted No. 285.9 million Share Price C$ $0.42 * Market Capitalization C$ $111 million 52 Week High & Low C$ $1.83 - $0.38 Average Daily Volume (3 month average) No. 1,000,000 Cash & Cash Equivalents C$ $25 million ** 7TSX: BSX Capital Structure *As at Oct 4th , 2013 **As at June 30th , 2013
  • 8. 8 Volta Grande Infrastructure TSX: BSX
  • 9. 9 Belo Monte Dam Construction
  • 10. 10 Volta Grande Main Deposits (October 2013) TSX: BSX Ouro Verde Measured & Indicated: 44.2 Mt (2.4M oz) @ 1.70 g/t Au Inferred: 23.4 Mt (1.2M oz) @ 1.48 g/t Au Grota Seca Measured & Indicated: 47.1 Mt (2.4M oz) @ 1.59 g/t Au Inferred: 18.9 Mt (1M oz) @ 1.59 g/t Au Volta Grande Total Measured & Indicated: 93.8 Mt (5.1M oz) @ 1.69 g/t Au Inferred: 45.5 Mt (2.5M oz) @ 1.75 g/t Au * Details regarding the mineral resource estimate can be found in the Press Release dated Oct 3rd, 2013 that has been filed under the profile of the Company on SEDAR.
  • 11. 11 Volta Grande Topography TSX: BSX View from Ouro Verde • Deposit located well above water line • Upstream damming of river will further reduce river level
  • 12. Grota Seca South Block Ouro Verde Exploration Camp 12 Brownfields Exploration TSX: BSX GRANDE *South Block Inferred Resource Estimate -Indicated Pit Constrained – 2.5M tonnes @ 3.06 g/t Au containing 246k oz Au -Inferred Pit Constrained – 2.9M tonnes @ 3.94 g/t Au containing 370k oz Au -Indicated Underground – 24k tonnes @ 4.24 g/t Au containing 3k oz Au - Inferred Underground – 193k tonnes @ 4.05 g/t Au containing 25k oz Au Target Areas for future resource expansion * Details regarding the mineral resource estimate can be found in the Press Release dated Oct 3rd, 2013 that has been filed under the profile of the Company on SEDAR.
  • 13. Grande Artisanal Mine Quartz veins – N60E/45SE 13TSX: BSX
  • 14. South Block Garimpo Operations - 1980 14TSX: BSX
  • 15. Volta Grande TSX: BSX
  • 16. OURO VERDE - Central portion of Domain-2 270m HG zone inside of D2 Sec 975NW Sec 475NW
  • 17. GROTA SECA - Central portion of Domain-1 - HG zone related to the general trend presented in slide 15 Sec 2050W Sec 1725W Notes - Cut-off: aprox. 1.50 ppm - Num. drill holes: 41 - Num. samples: 487 - Thickness: max=16m, min=2m, aver=8m - HG zone near surface 325m 190m HG zone inside of D1
  • 18. GROTA SECA - Portion along “Galo” area - HG zone related to the “galo” trend presented in the slide 15 Sec 800W Sec 525W Notes - Cut-off: aprox. 1.50 ppm - Num. drill holes: 42 - Num. samples: 377 - Thickness: need to be modeled - HG zones near surface Main structural controls TSX: BSX
  • 19. Galo – Garimpo U/G Operations TSX: BSX 19
  • 20. 20TSX: BSX Artisanal Mining
  • 21. 21TSX: BSX Artisanal Mining
  • 22. Garimpo Mine - Galo 22TSX: BSX
  • 23. 23 Project Performance (After Tax) TSX: BSX Project Data Prefeasibility Results Production Data Life of mine 10 Years Annual Mine Throughput 7 million tpy Metallurgical Recovery Au 94% Average Annual Gold Production 313,100 oz Average Waste to Ore Strip Ratio Average Grade of M&I Resource Average Grade after mining dilution 6.88:1 1.72 g/t 1.48 g/t Life of Mine Operating Costs/Tonne Ore Milled Mining US$17.36 Processing US$10.50 General and Administration US$2.52 Total Operating Cost/Ounce of Gold US$681.90 Cash Operating Costs including Royalties US$711.50 Capital Cost Initial Investment Capital US$ 749,114,400 Average Sustaining Capital over life of mine including closure costs US$19.62 million per annum
  • 24. 24 Operating Cost Breakdown TSX: BSX Category Cost per tonne Ore in US$ Cost per Ounce Produced in US$ Mining Cost per Tonne material moved Mining 2.26 17.36 389.60 Processing 10.50 235.70 General and Administrative 2.52 56.60 Total US$30.38 US$681.90 Strip Ratio 6.88:1
  • 25. 25TSX: BSX Brazilian Reais Sept 2012 – Sept 2013 1.9 2 2.1 2.2 2.3 2.4 2.5 2.6 BRAZILIANREAIS Source: Bloomberg September 17th, 2013
  • 26. 26TSX: BSX Volta Grande – Preliminary Project Layout
  • 27. 27TSX: BSX Proposed Location of Plant Facility
  • 28. 28TSX: BSX Regional Geology & BSX Sampling/Geophysics Garimpinho 79.5 g/t Au in diorite Javae 120.9 g/t quartz vein colluvium/alluvium Surubim Buma * 28 km road access from Itata to BUMA BSX airborne survey limit  BSX airborne Mag/Rad Survey – covered 130km strike (pending data processing)  Eastern part of the greenstone was not covered in previous work 7 DDH = 1,100m + auger drilling 700,000t @ 0.8 g/t Au (oxide)  grab sample 60 g/t Au (VQz) Jatoba  11 DDH = 2,389m + auger drilling 11m @ 0.3 % Cu (up to 1.38% Cu)  Geotem-mag airborne survey  grid soil sampling: up to 189 ppb Au (1km line spacing) * Historical Resource - Non NI 43-101 Compliant and should not be relied upon.
  • 29. 29 Artisanal Workings TSX: BSX
  • 30. More than one million ounces of historical gold production at Patrocinio 3.0 km by 1.5 km soil geochemical anomaly defined Grab samples have returned gold values up to 37 g/t in granite and up to 67 g/t in veins IP geophysical survey completed 1,500 meter drill program completed One hole returned 23.35m of 1.35 g/t Au 2013 drill program – 5000 meters 16m of 5.2 g/t Au and 15m of 2.66 g/t Au 30TSX: BSX Patrocinio Tapajos District
  • 31. Patrocinio Project Garimpeiro Mining 31TSX: BSX
  • 32. Spot Au: (18%) Emerging Gold Peers: (47%) S&P/TSX Global Gold: (36%) Belo Sun: (38%) (80%) (60%) (40%) (20%) – 20% 40% 60% Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 1 Return Over Period Producing Gold Peers: (49%) 32TSX: BSX LTM Share Performance September 4, 2012 – September 4, 2013 Source: TD Securities September 4, 2013, Bloomberg (1) Producer gold peers index includes: Alamos, Argonaut, B2Gold, Centamin, Kirkland Lake, Rio Alto, San Gold and Semafo (2) Developer gold peers index includes: Carpathian, Guyana Goldfields, Lydian, Rainy River, Romarco, Sandspring, Sulliden and Torex
  • 33. 33TSX: BSX Independent Research Coverage Firm Analyst TD Securities Dan Earle CIBC Jeff Kileen BMO Capital Markets John P. Hayes National Bank Financial Shane Nagle Cormark Securities Richard Gray Canaccord Genuity Rahul Paul Dundee Capital Markets Joseph Fazzini Macquarie Capital Markets Michael Gray Scotiabank Global Banking& Markets Ovais Habib THE FOREGOING LIST INCLUDES THE NAMES OF ALL FIRMS CURRENTLY KNOWN BY THE COMPANY TO HAVE ANALYSTS COVERING THE COMPANY. THIS LIST MAY NOT BE COMPLETE AND IS SUBJECT TO CHANGE BY FIRMS' CHANGING OF COVERAGE. PLEASE NOTE THAT ANY OPINIONS, ESTIMATES OR FORECASTS REGARDING THE COMPANY MADE BY THESE ANALYSTS ARE THEIRS ALONE AND MAY NOT REPRESENT THOSE OF THE COMPANY. THE COMPANY IS PROVIDING THIS LISTING AS A SERVICE TO ITS STOCKHOLDERS AND, BY LISTING, IS NOT IMPLYING ITS ENDORSEMENT OF OR CONCURRENCE WITH SUCH ANALYST REPORTS. THOSE INTERESTED IN SUCH REPORTS SHOULD OBTAIN THEIR OWN COPIES AND CONTACT THEIR BROKERS OR THE RESPECTIVE FIRMS. Independent Research – Full Coverage
  • 34. 34TSX: BSX Camp Site
  • 35. 35TSX: BSX Aerial View
  • 36. 0m -200m 190m 50m 70m SW NE -400m Block Size: 12.5 X 5.0 X 10.0 m MR Open Pit g/t Au Mining - Saprolite US$/t 1.06 Mining - Fresh rock Open Pit US$/t 1.41 Processing US$/t 11.98 G & A US$/t 2.89 Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 Selling cost US$ / Oz 13.82 Au Price US$ / Oz 1,400.00 36 Ouro Verde – Block Model Cross Section 900 NW TSX: BSX
  • 37. 0m -200m 150m 120m SW NE 60m -400m Block Size: 12.5 X 5.0 X 10.0 m MR Open Pit g/t Au Mining - Saprolite US$/t 1.06 Mining - Fresh rock Open Pit US$/t 1.41 Processing US$/t 11.98 G & A US$/t 2.89 Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 Selling cost US$ / Oz 13.82 Au Price US$ / Oz 1,400.00 37 Ouro Verde – Block Model Cross Section 525 NW TSX: BSX
  • 38. 120m25m SW NE 70m 0m -400m -200m Block Size: 12.5 X 5.0 X 10.0 m MR Open Pit g/t Au Mining - Saprolite US$/t 1.06 Mining - Fresh rock Open Pit US$/t 1.41 Processing US$/t 11.98 G & A US$/t 2.89 Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 Selling cost US$ / Oz 13.82 Au Price US$ / Oz 1,400.00 38 Ouro Verde – Block Model Cross Section 300 NW TSX: BSX
  • 39. 39 Grota Seca – Block Model Cross Section 2575 W 0m -200m 30m 20m 25m SSW NNE MR Open Pit Block Size: 12.5 X 5.0 X 10.0 m g/t Au Mining - Saprolite US$/t 1.06 Mining - Fresh rock Open Pit US$/t 1.41 Processing US$/t 11.98 G & A US$/t 2.89 Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 Selling cost US$ / Oz 13.82 Au Price US$ / Oz 1,400.00 TSX: BSX
  • 40. 40 Grota Seca – Block Model Cross Section 1875 W 0m -200m 90m 30m 75m SSW NNE MR Open Pit Block Size: 12.5 X 5.0 X 10.0 m g/t Au Mining - Saprolite US$/t 1.06 Mining - Fresh rock Open Pit US$/t 1.41 Processing US$/t 11.98 G & A US$/t 2.89 Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 Selling cost US$ / Oz 13.82 Au Price US$ / Oz 1,400.00 TSX: BSX
  • 41. 0m -400m -200m 190m 60m 130m SSW NNE Block Size: 12.5 X 5.0 X 10.0 m MR Open Pit g/t Au Mining - Saprolite US$/t 1.06 Mining - Fresh rock Open Pit US$/t 1.41 Processing US$/t 11.98 G & A US$/t 2.89 Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 Selling cost US$ / Oz 13.82 Au Price US$ / Oz 1,400.00 41 Grota Seca – Block Model Cross Section 825 W TSX: BSX
  • 42. 42TSX: BSX Breakdown by Elevation VGP - Pit Constrained MR – Sep 2013 (Belo Sun) ELEVATION Tonnage AU_CUT_OK Au Oz T x 1000 g/t 100MD 2,064.839 1.65 109,696 90MD 2,483.037 1.63 130,030 80MD 2,799.670 1.68 150,979 70MD 3,078.703 1.71 169,315 60MD 3,197.871 1.73 177,571 50MD 3,158.016 1.73 175,800 40MD 3,081.058 1.73 171,033 30MD 2,993.089 1.72 165,954 20MD 2,872.085 1.70 156,959 10MD 2,726.778 1.72 150,532 0MD 2,632.665 1.74 147,098 -10MD 2,597.336 1.78 148,341 -20MD 2,574.871 1.84 152,064 -30MD 2,530.356 1.82 147,883 -40MD 2,453.314 1.79 141,555 -50MD 2,350.234 1.85 139,680 -60MD 2,241.072 1.90 136,772 -70MD 2,188.391 1.87 131,680 -80MD 2,142.159 1.85 127,423 -90MD 2,044.708 1.86 122,368 -100MD 1,946.772 1.86 116,363 -110MD 1,852.345 1.82 108,247 -120MD 1,737.226 1.81 101,167 -130MD 1,596.591 1.82 93,490 -140MD 1,473.223 1.78 84,542
  • 43. TSX: BSX 43 THE RIGHT DEPOSIT….. THE RIGHT PLACE ….. THE RIGHT TIME….. THE RIGHT PEOPLE…..
  • 44. 44TSX: BSX Appendix Volta Grande – Potential Crushing Plant Crushing Annual processing rate 7,000,000 t/y Crushing availability 70.0 % Nominal capacity 1,142 t/h Installed power 375 kW Type Gyratory Crusher Feed top size 1,000 mm Product P80 175 mm Number of units 1 unit Feed silo capacity: 128 t (86 m3) 5 min.
  • 45. 45TSX: BSX Appendix Volta Grande – Potential Milling Plant Milling Plant Annual processing rate 7,000,000 t/y Availability 90.0 % Nominal capacity 888 t/h Feed P80 175 mm SAG discharge target P80 2.5 mm Ball mill discharge target P80 0.074 mm SAG mill 36 ft diam. X 20 ft EGL 1 unit Ball mill 26 ft diam. X 33 ft EGL 2 units Pebble crusher (Cone crusher) 2 units Pebble crusher nominal capacity 373 t/h Gravity concentrator 40" diameter 4 units Gravity plant feed rate (30% Cyclone OF) 533 t/h Bond ball mill work index 18.4 kWh/t Abrasion index (AI) 0.647 - Ore specific gravity 2.65 t/m3
  • 46. 46TSX: BSX Appendix Volta Grande – Potential Leach Plant Calculated leach plant recovery 89,23 - 90,91 Calculated gold produced/week 5,921 - 6,048 Calculated silver produced/week 7,240 -7,396 Leach Plant Annual processing rate 7,000,000 t/y Availability 90.0 % Nominal capacity 888 t/h Feed P80 0.074 mm Leach feed thickener diameter 57.0 m oz % oz
  • 47. Life of Mine 10 years Annual production throughput 7 million tpy Metallurgical Recovery 94% Avg annual gold production 313,100 oz/yr Avg waste to ore strip ratio 6.88:1 Avg head grade 1.48 g/t CAPEX US$ 749 million OPEX US$ 31.70/t of Ore Cost per ounce US$ 711.50 NPV @ 5% US$ 474 million IRR 15.2% 47TSX: BSX Appendix Pre-feasibility
  • 48. Mine Fleet Trucks 180 t, Shovels 15m3 Process Gyratory Crusher, SAG and 2 ball mills Gravity Circuit Carbon in Leach Elution and Carbon Regeneration Electrowinning Smelting Cyanide Destruct Tailings Management Facility Situated in a natural basin 48TSX: BSX Appendix Pre-feasibility
  • 49. 49TSX: BSX CRUSHING STOCKPILE SEMI AUTOGENOUS MILLING, BALL MILLING GRAVITY SEPARATION INTENSIVE LEACHING THICKENING CARBON IN LEACH ELUTION CARBON REGENERATION ELECTROWINNING SMELTING DORE BARS CYANIDE DETOX TAILINGS TREATMENT Appendix Pre-feasibility
  • 50. Appendix Comparing PFS x April 2013 (CF) TSX: BSX
  • 51. 51TSX: BSX Appendix Volta Grande Capital Cost Estimate Area Description Value without Taxes (USDx1000) Value with Taxes (USDx1000) % of CAPEX General (Assemblies) 52,573 57,551 7.68% Mine 121,528 126,127 16.84% Plant – General 91,471 101,508 13.55% Crushing 11,412 12,186 1.63% Storage/Ore transference 5,087 5,537 0.74% Grinding 70,178 75,724 10.11% Leaching/Adsorption 30,037 33,057 4.41% Elution 5,763 6,564 0.88% Electrowinning 1,119 1,279 0.17% Gold room 1,527 1,674 0.22% Carbon regeneration 970 1,081 0.14% Tailings treatment 3,186 3,877 0.52% Lime preparation 1,491 1,698 0.23% Tailings dam 10,788 12,641 1.69% Ancillary facilities 48,507 55,493 7.41% Water distribution system 2,868 3,512 0.47% Compressed air system 1,111 1,189 0.16% Reagents delivery, store and distribution 7,308 8,249 1.10% Infrastructure 29,378 32,946 4.40% Environment 1,018 1,174 0.16% Engineering and Procurement (EP) 23,787 26,039 3.48% Construction management (CM) 31,716 34,719 4.63% Owner’s Costs 21,819 21,819 2.91% Freight 8,223 8,223 1.10% Erection supervision (Vendor Representation) 3,721 4,340 0.58% Spare parts 1,052 1,132 0.15% Firts Fills 1,817 1,954 0.26% Pre-Commissioning and training 3,721 4,340 0.58% Engineering insurance 5,998 6,561 0.88% Contingency 96,919 96,919 12.94% Total 696,094 749,114 100%
  • 52. 52 TSX: BSX Appendix Mineral Resource Estimate VOLTA GRANDE PROJECT RESOURCE ESTIMATE VOLTA GRANDE RESOURCE ESTIMATE MEASURED INDICATED MEASURED + INDICATED INFERRED Ouro Verde Pit Constrained Tonnes (‘000s) 24,036 20,087 44,123 22,602 Grade (g/t Au) 1.78 1.61 1.70 1.48 Ounces (‘000s) 1,379 1,037 2,416 1,079 Ouro Verde Underground Tonnes (‘000s) 64 64 831 Grade (g/t Au) 2.66 2.66 3.13 Ounces (‘000s) 5 5 84 Grota Seca Pit Constrained Tonnes (‘000s) 31,384 15,671 47,055 18,265 Grade (g/t Au) 1.61 1.56 1.59 1.59 Ounces (‘000s) 1,620 788 2,408 932 Grota Seca Underground Tonnes (‘000s) 53 53 695 Grade (g/t Au) 2.88 2.88 3.38 Ounces (‘000s) 5 5 75 South Block Pit Constrained Tonnes (‘000s) 2,503 2,503 2,921 Grade (g/t Au) 3.06 3.06 3.94 Ounces (‘000s) 246 246 370 South Block Underground Tonnes (‘000s) 24 24 193 Grade (g/t Au) 4.24 4.24 4.05 Ounces (‘000s) 3 3 25 Tonnes (‘000s) 55,420 38,402 93,822 45,507 TOTAL VG Grade (g/t Au) 1.68 1.69 1.69 1.75 Ounces (‘000s) 2,999 2,085 5,084 2,565 • Details regarding mineral resource estimate can be found in the press release dated October 3rd , 2013 that has been filed under the profile of the Company on SEDAR.
  • 53. 53 Appendix Mineral Resources Parameters TSX: BSX 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 horizontal sections each 10m apart. 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 6 - 40 g/t Au depending on the resource domain. d) The database for the Ouro Verde Deposit includes 46 historical core boreholes (8,461 metres) and 267 boreholes (76,698 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 60 metres. The maximum allowed internal dilution is approximately 3 metres. f) The database for the Grota Seca Deposit comprises 11 historical reverse circulation and 129 historical core boreholes (24,730 metres) and 48 reverse circulation and 345 core boreholes (102,103 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 86 core boreholes (20,539 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 6 m E, 6 m N and 10 m elevation rotated -17° clockwise in the Ouro Verde and Grota Seca deposits and -25° 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 estimated in the first or second estimation runs (within the variogram range), whose estimation required a minimum of two drill holes. n) Inferred mineral resources include all mineralized blocks not classified as Measured or Indicated in the first and second estimation runs and all blocks estimated in the third estimation run (twice the variogram range).
  • 54. 54 Appendix Project Overview TSX: BSX Definitive Feasibility Study underway – AMEC, Oakville, Canada – Q1 2014 236,000 metres and 954 holes drilled to date ACME Preparation Lab on site for assays – Construction Completed July 2011 Preliminary Mining Engineering Studies – NCL – Completed June 2011 Diagnostic Leach Test Work completed by TESTWORK Ltda (Walter de Moura). Comminution and Process Development Test Work completed by HAD Ltda (Homero Delbony) Initiated advanced Metallurgical testing by LAKEFIELD Chile Environmental studies (EIA/RIMA) – BRANDT– Completed Geotechnical, hydrologic and hydrogeologic studies – VOGBR – Ongoing Regional geological studies and exploration program initiated Community and social impact studies – INTEGRATIO initiated

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