Belvedere Resources Ltd.

TSX VENTURE : BEL


Belvedere Resources Ltd.

December 20, 2012 13:25 ET

Belvedere Reports Annual Updated Resource Estimate and Commences 10,000 Metre UG Drilling Campaign at Hitura Nickel Mine, Finland

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2012) - Belvedere Resources Ltd. (TSX VENTURE:BEL) ("Belvedere") is pleased to announce that it has produced its annual Resource statement for the Hitura Mine as presented in the table below.

David Pym (CEO) comments "Since the last resource update, the mines total mineral reserves have remained largely static as the development of new reserves keeps pace with mining. Total 2P reserves remain at approximately three years of production. Total M&I resources have decreased slightly by 0.4 Mt due to cyclical fluctuations in exploration drilling. A new 10,000 metre resource delineation drilling programme has commenced, to bring extensions to current mineralisation into the resource base, and to test new areas for mineral potential. "

The Qualified Person responsible for the Independent Technical Report has determined that the Hitura Nickel Mine has NI 43-101 compliant Mineral Reserves and Resources, reported at a 0.54% Ni cut-off (and 0.3% Ni cut-off for the Open Pit Extension) as follows:

Hitura Mine Mineral Reserve Estimate 1.12.2012
Mineral Reserve Estimate Tonnage Ni % Cu% S%
Proven Reserve 149,000 0.59 0.20 1.90
Probable Reserve 487,000 0.60 0.26 2.04
Probable Reserve (Open Pit, Cut-off 0.3% Ni) 1,020,000 0.38 0.13 1.64
Total Mineral Reserve 1,656,000 0.46 0.18 1.78
Hitura Mine Mineral Resources 1.12.2012
Measured Mineral Resource Tonnage Ni % Cu% S%
North Hitura (Cut-off 0.54% Ni) 72,000 0.70 0.29 3.00
Measured Mineral Resource 72,000 0.70 0.29 3.00
Indicated Mineral Resource Tonnage Ni % Cu% S%
North Hitura (Cut-off 0.54% Ni) 749,000 0.64 0.23 3.54
Middle Hitura (Cut-off 0.54% Ni) 182,000 0.68 0.21 2.33
Indicated Sub Total 931,000 0.65 0.23 3.30
Open Pit Extension (Cut-off 0.3% Ni) 1,604,000 0.42 0.13 1.33
Indicated Mineral Resource 2,535,000 0.50 0.17 2.05
Total Mineral Resource (M + I) 2,607,000 0.55 0.18 2.21
Inferred Mineral Resource Tonnage Ni % Cu% S%
North Hitura (Cut-off 0.54% Ni) 150,000 0.73 0.30 2.87
Middle Hitura (Cut-off 0.54% Ni) 22,000 0.6 0.2 2.2
South Hitura (Cut-off 0.54% Ni) 257,000 0.7 0.3 5.9
W off set (Cut-off 0.54% Ni) 28,000 0.7 0.2 3.2
Inferred Mineral Resource 457,000 0.7 0.29 4.56

Mineral Reserve and Resource Statement:

The mineral reserve and resource estimate for Hitura is effective from 1st December, 2012, and has been prepared by Pekka Lovén and Markku Meriläinen of Outotec (Finland) Oy. The mineral resource and reserve estimates have been prepared under the supervision of Pekka Lovén (MSc), MAusIMM(CP) #301822, who is acting as an Independent Qualified Person in compliance with National Instrument 43-101 with respect to this release.

Mineral reserves are exclusive of mineral resources.

The underground mineral resource was calculated using block modelling, made up of 5m x 5m x 5m parent blocks, with sub-blocks of 2.5m x 2.5m x 2.5m constrained by a 0.47% Ni grade envelope. The grades inside the blocks were calculated using a combination of ordinary Kriging and an inverse distance squared method, depending on the quality of the variograms associated with the different ore zones. The maximum search distance was 200m for all estimations. The distance between the drilling profiles used for constructing the grade envelopes, varies from 6 m to 25 m but the most frequent one is 12.5 m. The minimum of 3 and maximum of 15 composites were used to estimate the block grade. An average specific gravity of 2.7 was assigned for all blocks.

The open pit extension mineral resource was calculated using block modelling, made up of 5m x 5m x 10m blocks, constrained by a 0.35% Ni grade envelope. Three separate groups of wireframe solids were constructed representing the east, central and west mineralised bodies. The grades inside the blocks were calculated using an inverse distance squared method, with different search ellipsoids for each body. The maximum search distance was 200m for all estimations. The minimum of 3 and maximum of 20 composites were used to estimate the block grade. An average specific gravity of 2.65 g/cm3 was assigned for all blocks.

The calculation of Reserves is based on the ongoing profitable mining operations at the Hitura Mine. The key economic criteria that have been used for the calculation of reserves are based on the preceding 12 months of production at the mine, through to end of December 2011. The operating cost for this period was EUR 36.7/tonne of ore. Belvedere has an offtake agreement in place with Jinchuan Group Ltd for a 2 year period ending in February 2014. For the purpose of calculating reserves a nickel price of $20,323 has been used.

The open pit optimization and conversion of the Open Pit Resources to Reserves, was done using Surpac software. Optimisation was based on NSR calculated according to nickel grades and recoveries of the different ore types (65% for normal ore and 57% for the fine grained ore).The costs used for calculations were EUR 2.7/m3 overburden removal, mining costs of EUR3.5 /t (ore) and EUR3.2 /t (waste) and process and administrations costs of EUR11 /t. The pit is designed with 20m ramps, and an overall slope angle of 50 degrees. Full details are provided in the Technical Report.

The Technical Report supporting this press release has been filed and available on www.sedar.com. A statement of "Consent of Qualified Person" relating to this press release has been filed on Sedar.

About Belvedere:

Belvedere Resources Limited is a mining company incorporated in British Columbia with a primary focus on nickel, gold, cobalt and copper in Finland. The Company currently produces 2500t of nickel in concentrate/year from the Hitura nickel mine in Central Finland. The Company has a number of advanced gold projects in close proximity to the Hitura mine.

Forward Looking Statement:

Some of the statements contained herein may be forward-looking statement, which involve known and unknown risks and uncertainties. Without limitation, statements regarding conversion of resources to reserves, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this release.

Contact Information

  • Belvedere Resources Ltd.
    David Pym
    CEO
    Suite #404, Vancouver World Trade Centre
    999 Canada Place, Vancouver. BC. V6C 3E2, Canada
    www.belvedere-resources.com

    Humbercrest Capital Inc.
    Scott Findlay
    +1 647 274 2536