Belo Sun Mining
TSX VENTURE : BSX

Belo Sun Mining

April 04, 2011 07:00 ET

Belo Sun Mining Expands Mineral Resources at the Volta Grande Gold Project in Para State, Brazil

TORONTO, ONTARIO--(Marketwire - April 4, 2011) - Belo Sun Mining Corp. (TSX VENTURE:BSX) (the "Company" or "Belo Sun") announces an updated mineral resource estimate for its 100% owned Volta Grande gold project in Para State, Brazil, following the inclusion of results from 20 additional drill holes taken from the Ouro Verde deposit. The resource update has been completed in compliance with NI 43-101 standards and the corresponding Technical Report will be filed on SEDAR in due course.

Highlights:

  • A 23% increase on the contained ounces in the Indicated Mineral Resources category to an estimated 1,307,000 ounces of gold in 29.2 Million tonnes grading 1.39 g/t Au.

  • A 5% increase in Inferred Mineral Resources to an estimated 2,136,000 ounces of gold in 53.6 Million tonnes grading 1.24 g/t Au.

  • Approximately 86% (71 Million tonnes) of the resources occur within 200 meters from surface (see Figure 1).

This resource update includes 20 additional drill holes totaling 4,990 meters from the Ouro Verde deposit. The revised mineral resource estimate for the Volta Grande project is outlined in Table 1 below: 

Table 1:

VOLTA GRANDE PROJECT RESOURCES INDICATED INFERRED
Ouro Verde Deposit Tonnes     18,782,000 12,509,000
  Ounces 881,000 500,000
  Average Grade (g/t Au)   1.46 1.24
Grota Seca Deposit Tonnes     10,440,000 41,130,000
  Ounces 426,000 1,640,000
  Average Grade (g/t Au)   1.27 1.24
  Tonnes     29,222,000 53,639,000
Total Volta Grande Ounces 1,307,000 2,136,000
  Grade (g/t Au)   1.39 1.24
         

Notes:

  1. Mineral resources are estimated using 0.5 g/t Au cut-off.
  2. Mineral resources have been estimated in accordance with CIM Standards.
  3. Mineral resources are estimated using a price of US$900/oz Au.
  4. Numbers for tonnes and contained gold are rounded.
  5. Mineral resources are estimated based on metallurgical recovery of 90% of the contained gold.
  6. The Qualified Person for reporting the Mineral Resources is David Gower, P.Geo. an advisor to Belo Sun Mining.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/686970_fig_1.pdf

The diamond drilling program at the Volta Grande project will continue throughout 2011 with the aim of further upgrading and expanding the mineral resources on the North Block, which hosts the Ouro Verde and Grota Seca deposits (see figure 2 property map). There are presently six drills operating on the property and four additional drills will be added shortly, bringing the total to ten.

Helio Diniz, Belo Sun Vice President, Exploration, noted, "The Volta Grande Gold Project continues to show excellent results and we are very pleased with results to date. Besides the excellent work carried out by our team, it is really important to emphasize that such a great expansion of the resources would not be achieved without the geological endowment of the Volta Grande Gold Deposits. The Company is aiming to continue the expansion of the resources as the deposits remain open along strike and at depth. The progress towards upgrading the resources category is also a priority as we move forward with the exploration program as the program has been designed to increase the confidence level for the feasibility studies which will commence shortly."

Mineral Resource Estimate Parameters The database comprised a total of 33,191 m of diamond drilling obtained from previously reported drilling and from 8,240 m of drilling completed and assayed by Belo Sun since June 2010 for the Ouro Verde and Grota Seca deposits.

The mineralized zones at the Ouro Verde deposit extend for about 1,120 m along strike and to a depth of 500 meters below surface, and have been outlined by 73 diamond drill holes. Six mineralized fresh ore zones and one saprolite ore zone were modeled. The outer mineralized envelope was modeled into wireframe solids using 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 mineralized zones at the Grota Seca Central, West and East deposits extend 2,320 m along strike and to a depth of 350 m below surface, and have been outlined by 139 diamond drill holes. Nine mineralized zones and one saprolite zone were modeled. The outer mineralized envelope was modeled into wireframe solids using a 0.5 g/t Au cut-off grade. The mineralized zones range in thickness from 3 m to 55 m with an average horizontal thickness of 9.5 m assuming maximum internal dilution of approximately 5 m.

For the Ouro Verde and the Grota Seca deposits 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 12.5 m E, 2.5 m N and 10 m elevation rotated -20° clockwise (for the Ouro Verde deposit) and 12.5 m E, 2.5 m N and 10 m elevation rotated -15° clockwise (for the Grota Seca deposit).

Calculations of the average grades of the mineralized zones are based on original samples top cut to a maximum of 25 g/t Au depending on the ore domain. This resulted in an approximate 11% reduction in the overall average gold grade.

Tonnage estimates are based on rock specific gravity of 2.76 tonnes/cubic metre for the fresh rock and 1.80 tonnes/cubic metre for saprolite using an average of 354 samples. Tonnes are reported on a dry basis and represent in situ resources.

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.

Inferred mineral resources include all mineralized areas that are defined by drill holes spaced 50 m or farther apart limited, down dip, by the variogram range in this direction.

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 on SEDAR.

Appointment of Renmark Financial Communications Inc.

Belo Sun is also pleased to announce that it has retained the services of Renmark Financial Communications Inc. to handle its investor relations and retail marketing activities.

In consideration of the services to be provided, the Company has agreed to a 12-month agreement starting March 1, 2011 to pay a monthly retainer of $3,000 a month to Renmark Financial Communications Inc.

Renmark Financial Communications does not have any interest, directly or indirectly, in Belo Sun Mining Corp. or its securities, or any right or intent to acquire such an interest.

Qualified Person Review

The updated resource estimate was completed Mr. Carlos Henrique Cravo Costa and Mr. Thiago Bonas, both of Belo Sun, in accordance with NI 43-101. The scientific and technical information in this press release has been reviewed and approved by David Gower, P. Geo., an advisor to Belo Sun Qualified Person, as defined by National Instrument 43-101.

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 primary 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 140 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; metal prices; 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". The mineral resource estimates described herein are based on the assumptions and parameters described above. 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.

To view Figure 2 - Volta Grande Geological Map and Location of Ouro Verde and Grota Seca deposits, please visit the following link: http://media3.marketwire.com/docs/686970_fig_2.pdf

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