Belo Sun Mining Corp.
TSX VENTURE : BSX

Belo Sun Mining Corp.

September 21, 2010 09:46 ET

Belo Sun Mining Drill Program Increases Grade and Tonnes for Resource Estimate at Ouro Verde Gold Deposit, Brazil

TORONTO, ONTARIO--(Marketwire - Sept. 21, 2010) - Belo Sun Mining Corp. (TSX VENTURE:BSX) (the "Company" or "Belo Sun") is pleased to announce an update to the previously reported National Instrument (NI) 43-101 compliant mineral resource estimate for its Ouro Verde deposit at its 100% owned Volta Grande project in Brazil. The Ouro Verde Deposit resource accounted for 40% of the Volta Grande total resource released on September 23, 2009.

The new resource update, which will be included in a Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") technical report to be filed on SEDAR in due course, is the result of work undertaken by the Belo Sun technical team and includes the results of nine additional drill holes (totaling 2,597 m) out of a planned 15,000 m (see press release of May 5, 2010).

The table below presents a comparison of the previous and the new resource estimate for the Ouro Verde deposit:

Table 1. OURO VERDE DEPOSIT RESOURCES
    INDICATED INFERRED
Resource Estimate as at September 2009 Tonnes 11,640,000 11,760,000
Ounces @ 0.5 g/t cut-off 455,000 398,000
Grade (g/t) Au 1.22 1.05
(*)Resource Estimate as at September 16, 2010 Tonnes 12,226,000 8,530,000
Tonnes change (%) 5.0% -27.5%
Ounces @ 0.5 g/t cut-off 631,642 377,867
  Ounces change (%) 38.8% -5.1%
  Grade (g/t) Au 1.61 1.38
  Grade change (%) 32.0% 31.4%
(*) - Includes Additional 9 Diamond Drill Holes completed in 2010

Belo Sun President and CEO Mark Eaton noted, "The Belo Sun team has made excellent progress towards achieving the on-going goals of improving the grade and contained ounces at the Volta Grande Project."

Belo Sun expects to issue an updated NI 43-101 compliant resource estimate for the Grota Seca deposit at the Volta Grande project upon completion of the planned drill holes in its current campaign. The Grota Seco deposit is a second mineralized area within the Volta Grande project, which together with the Ouro Verde Deposit comprises the resources estimated in the previously NI 43-101 technical report (September, 2009). 

See below for a summary of the parameters used in calculating the resource estimate.

The Resource Estimate

The database comprised a total of 8,190 m of drilling obtained from previously reported drilling and from 2,597 m of drilling completed and assayed by Belo Sun since June 2010 on a maximum 50 m x 50 m grid.

The mineralized zones at the Ouro Verde deposit extend 840m along strike and to a depth of 300 m below surface, and have been outlined by 56 diamond drill holes. Six mineralized fresh zones and one saprolite zone were modeled. The outer mineralized envelope was modeled into wireframe solids using approximately a 0.5 g/t Au cut-off grade. The mineralized zones range in thickness from 3 m to 58 m with an average horizontal thickness of 10.5 m assuming maximum internal dilution of approximately 5 m.

The grade estimate was done using ordinary kriging interpolation using 1.0 m composites. Resources were also estimated using inverse distance squared interpolation, which produced similar results. All estimates are based on a percent block model with unitary dimension of 10 m E, 2.5 m N and 10 m elevation rotated -20° clockwise.

Calculations are based on original samples top cut to a maximum of 22 g/t Au depending on the mineralized domain. This resulted in an approximate 5% reduction in the overall average of gold grade. Nineteen samples were capped.

Tonnage estimates are based on rock specific gravity of 2.76 tonnes/cubic meters for the fresh rock and 1.80 tonnes/cubic meters for saprolite using an average of 309 samples. Tonnes are reported on a dry basis and represent in situ resources. The specific gravity of the deposit was obtained via water immersion method that includes: (i) weight in the air (Wair); (ii) weight in the water (Wwater); and, (iii) water specific gravity.

  SG = Wair x water specific gravity  
    Wair - Wwater  

Belo Sun used three methods to validate the estimated block model: visual comparison of block grades with composites grades, statistical comparison between composites and block grade distributions, and swath-checks along strike, down dip, and across each estimated zone.

Indicated mineral resources include all mineralized areas that are defined by drill holes 50 m apart or less, along drill sections spaced 50 m or less. These classification parameters were defined by variographic studies. Inferred mineral resources include all mineralized areas that are defined by drill holes spaced 50 m or farther apart in isolated areas.

The Volta Grande project has a NI 43-101 compliant Preliminary Assessment report published in September 2009 by Scott Wilson RPA, which is available on the Company's website and under the Company's profile on SEDAR.

Quality Assurance and Quality Control

The updated resource estimate for the Ouro Verde Deposit was completed Mr. Carlos Cravo Costa and Mr. Thiago Bonas, both of Belo Sun and Mr. Hrayr Agnarian, P.Geo. of Scott Wilson RPA, in accordance with NI 43-101. An independent review of these results has been completed by Scott Wilson RPA. The scientific and technical information in this press release has been reviewed and approved by David Gower, P. Geo., an advisor to Belo Sun and Hrayr Agnerian, P. Geo, Scott Wilson RPA, both Qualified Persons as defined by National Instrument 43-101.

Belo Sun's procedures for handling drill core comprise initial description and logging into a Microsoft Access database. Mineralized and suspected mineralized intervals in the 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. Assay standard and "blank" samples are inserted approximately every 20th sample. These samples are then delivered to the ACME Labs sample preparation facility in Itaituba, Para, Brazil. The assay samples are then fine-crushed to better than 85% passing 10 mesh screen, with an assay pulp split of up to 500 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 with AAS finish. These QA/QC procedures provide several measures of data quality and assurance to the Company that the assay data is representative of the original sample. 

About the Company

Belo Sun Mining Corp. (formerly Verena Minerals) is a Canadian-based mineral exploration company with a portfolio of properties focused on gold in Brazil. Belo Sun's prime focus is on advancing and expanding its 100% owned Volta Grande Project, located in Para State. Belo Sun trades on the TSX Venture Exchange under the symbol "BSX" and has approximately 138 million common shares issued and outstanding.

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 these drill results on the Company and its 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.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Belo Sun Mining Corp.
    Mark Eaton
    President and CEO
    (416) 861-5934
    www.belosun.com