Belo Sun Mining Corp. · TSX:BSX
Belo Sun Mining — Investor Presentation (October 2017)
34 slides from Belo Sun Mining's investor presentation, October 2017
Slide 1: Developing an Open Pit Gold Project in Brazil
Developing an Open Pit Gold Project in Brazil Corporate Presentation | Oct. 2017 TSX:BSX
Slide 2: Introductory Matters
Introductory Matters Currency: All dollar figures represent U.S dollars unless otherwise noted. Market and Industry Data: Unless otherwise indicated, the market and industry data contained in this document is based upon information from independent industry publications, market research, analyst rep
Slide 3: Company Overview
Company Overview Project Located in Mine-Friendly Country ▪ Volta Grande Project located in Para, the 2nd most active mining state in Brazil, with goal to be 1 st Advanced Stage of Development ▪ Construction licence for the Volta Grande Project granted on February 2, 2017 ▪ All necessary surface rig
Slide 4: Volta Grande Project Location
Volta Grande Project Location Para is the 2nd most active mining state in Brazil TSX: BSX | 4
Slide 5: Property & Infrastructure
Property & Infrastructure Altamira City 150,000 residents Belo Monte & Pimental Dams World’s 3rd largest hydroelectric dam High Quality Roads Volta Grande Camp Volta Grande Property Outline TSX: BSX | 5
Slide 6: Mineral Resources & Reserves
Mineral Resources & Reserves EXPLORATION VOLTA GRANDE CONCESSIONS MINING PROJECT SOUTH BLOCK Volta Grande Mineral Resources & Reserves Mineral Reserves Tonnes Gold Grade Contained Gold Proven 41,757,000 1.07 g/t 1,442,000 oz Probable 74,212,000 0.98 g/t 2,346,000 oz Proven & Probable 115,969,000 1.0
Slide 7: Altamira (population: +/- 150,000)
Altamira (population: +/- 150,000) TSX: BSX | 7
Slide 8: Pimental & Belo Monte Dams
Pimental & Belo Monte Dams TSX: BSX | 8
Slide 9: Projected Low Cost Open Pit Mine
Projected Low Cost Open Pit Mine (1) Production Projections ▪ Average LOM annual gold production of 205,000 oz, 17 year mine life ▪ First 10 years: 268,000 oz gold annually (2) Forecast Economics ▪ Pre-Tax IRR of 37%; Post-Tax IRR of 26% ($1,200/oz Au) ▪ Pre-Tax NPV of $942 million; Post-Tax NPV of
Slide 10: Volta Grande - Project Economics
Volta Grande - Project Economics Volta Grande Project – Economic Sensitivity to Gold Price Economic Analysis $1,300/oz Au $1,200/oz Au $1,100/oz Au Pre-Tax NPV (5%) $1,171 million $942 million $712 million Pre-Tax IRR 43% 37% 29% Post-Tax NPV (5%) $855 million $665 million $472 million Post-Tax IRR
Slide 11: Volta Grande Project - Sensitivities
Volta Grande Project - Sensitivities March 2015 ($1,200/oz Au; $US1:R3.10) = Post-Tax IRR of 26% September 2017 ($1,300/oz Au; $US1:R3.10) = Post-Tax IRR of 32% 32% Feasibility Study Current US:Real Post-Tax Internal Rate of Return (IRR) % (March 2015)* exchange rate; 26% $1,300/oz gold Exchange Rat
Slide 12: Milestones & Development Updates
Milestones & Development Updates Recent Milestones ✓ Hired key management & staff ✓ Process plant contract FL Smidth Feb 2017 ✓ $75M raised in June 2016 ✓ Long lead item purchases initiated ✓ Construction licence granted Feb 2017 ✓ Exploration program initiated ✓ New mining software training Project
Slide 13: Exploration Potential & Highlights of the 2017 Exploration Program
Exploration Potential & Highlights of the 2017 Exploration Program
Slide 14: Located Within Large Gold Belt
Located Within Large Gold Belt Amazon Basin Altamira Parnaíba Basin Volta Grande Project Três Palmeiras Greenstone Belt (+120 km strike; 1km-8km width) Geological data accumulated on Bacajá Domain Tapajós Province the entire belt to date: ▪ 11,000 soil samples (mostly taken in the mineral resource a
Slide 15: Tres Palmeiras Greenstone Belt
Tres Palmeiras Greenstone Belt Belo Sun’s claims cover nearly the entire ~120km greenstone belt. TSX: BSX | 15
Slide 16: 2017 Exploration Program
2017 Exploration Program Volta Grande Project Area OURO VERDE 1 Mineral growth along strike GREIA JUNCTION Mineral growth in Greia 2 GROTA SECA 3 Explore and upgrade South Block target Grassroots exploration drilling elsewhere on greenstone belt 4 TSX: BSX | 16
Slide 17: 2017 Exploration Program
2017 Exploration Program Aim & Status of the 2017 Exploration Program: Completed: ▪ Datum change for the project from SAD69 to SIRGAS2000 (to comply with Brazilian law) ▪ Additional geological modelling in the mineral resource area of the mining project to increase the current resource with new, nea
Slide 18: Near-Term Growth in South Block
Near-Term Growth in South Block Volta Grande Project Tonnes Avg. grade Gold (2015) (Mt) Total Measured & Indicated 0.98 g/t 156.593 4,956,000 oz (0.4g/t cut-off) (1) Total Inferred (0.4g/t cut-off) (1) 0.90 g/t 39.767 1,151,000 oz Volta Grande Project (2015 Feasibility Study) South Block (5km from N
Slide 19: Volta Grande vs. South Block
Volta Grande vs. South Block 250,000 200,000 Additional drilling has translated to 150,000 Meters Drilled significant mineral growth in the North 100,000 Block Belo Sun believes there is excellent 50,000 mineral growth potential in the South Block with further drilling. 0 2009 Arm 2015 Waving 2013 2
Slide 20: Volta Grande Section 800NW (2010)
Volta Grande Section 800NW (2010) 1,000 m SSW NNE 0m PEA Pit Shell March-2014 -200m Explanation Modeled Typologies Saprolite Metavolcanics Saprolite of Diorite Saprolite mineralized Mineralized diorite 0 50 100 Diorite non-mineralized metres Metavolcanics -400m TSX: BSX | 20
Slide 21: Volta Grande Section 800NW (2015)
Volta Grande Section 800NW (2015) 1,000 m SSW NNE 0m PEA Pit Shell March-2014 -200m Explanation Modeled Typologies Saprolite Metavolcanics Saprolite of Diorite Saprolite mineralized Mineralized diorite 0 50 100 Diorite non-mineralized metres Metavolcanics -400m TSX: BSX | 21
Slide 22: South Block (scaled vertical cross section)
South Block (scaled vertical cross section) TSX: BSX | 22
Slide 23: Undervalued Ounces
Undervalued Ounces Enterprise value per Mineral Resources: Belo Sun vs. peers $30 *Not including Inferred mineral resources of 1.52Moz Au grading 1.1g/t TSX: BSX | 23 Source: BMO Capital Markets
Slide 24: Summary & Value Proposition
Summary & Value Proposition ▪ Mine-friendly jurisdiction ▪ Permitting approved ▪ Near-term construction start ▪ Strong Production Profile & Robust Project Economics ▪ Large Resources/Reserves & Long-term mineral growth potential ▪ Exemplary management track-record (Desert Sun Mining, Central Sun Min
Slide 25: Thank you.
Thank you. Corporate Headquarters 800-65 Queen St. W. Toronto, Ontario M5H 2M5 Canada Investor Inquiries Caroline Arsenault +1 (416) 309-2137 info@belosun.com
Slide 26: Appendix
Appendix
Slide 27: Company Structure & Performance
Company Structure & Performance Capitalization Summary (Q2 ending June 30, 2017) Major Shareholder Distribution Agnico Eagle Mines ~20% Shares Outstanding 465,589,915 Sun Valley Gold ~20% Options 20,036,000 Canadian Gold Funds ~20% European Gold Funds ~7% Stock Performance (September 13, 2017) US Go
Slide 28: Project Performance
Volta Grande - Feasibility Study Details Project Performance Total ore mined 116 Mt Operating Cost Breakdown Waste mined 504 Mt Strip ratio 4.27 Avg. gold grade 1.02 g/t Au 39% Processing method Gravity/CIP/EW Processing Annual tonnes milled 6.75 Mt 57% Mining Plant recovery 93% Recovered 3.53 M oz
Slide 29: Construction Capital Breakdown
Volta Grande - Feasibility Study Details Construction Capital Breakdown Volta Grande Project Capital Allocation (3.1:1 BRL/US Exchange Rate) Overall site - Mine & waste rock dump $20.7 M Mine fleet $24.3 M Crushing plant $6.4 M Plant $71.1 M Tailings $7.4 M Infrastructure $33.6 M Ancillaries $20.4 M
Slide 30: Independent Research Coverage
Independent Research Coverage TD Securities Dan Earle CIBC Jeff Killeen BMO Capital Markets Brian Quast National Bank Financial Shane Nagle Cormark Securities Tyron Breytenbach Canaccord Genuity Eric Zaunscherb Scotiabank Global Banking Ovais Habib TSX: BSX | 30
Slide 31: Experienced Board & Management
Experienced Board & Management Management Team Peter Tagliamonte, P.Eng. MBA, President & CEO, Director ▪ 30 years of mine development and operations experience, including 20 years in Central and South America. Former CEO of Sulliden Gold, Central Sun Mining and COO of Desert Sun. Ian Pritchard, Chi
Slide 32: April 2017 Injunction - Details
April 2017 Injunction - Details April 2017: Interim Suspension Order Related to Construction Licence ▪ Issued by a judge from the Brazilian Federal Regional Court ▪ According to the order, the licence is to be suspended until the Indigenous Study has been approved by FUNAI ▪ FUNAI did not accept the
Slide 33: April 2017 Injunction - Details
April 2017 Injunction - Details ▪ Belo sun has appealed the injunction ▪ Appeal to Federal Court of Appeals in Brazilia to be reviewed by panel of 3 judges ▪ Working with, and in discussion with FUNAI, to resolve this issue Nearest indigenous land: 12 km Volta Grande Project TSX: BSX | 33
Slide 34: Impact Area: Belo Monte vs. Volta Grande
Impact Area: Belo Monte vs. Volta Grande Belo Monte Dam Indigenous Land closest to Volta Grande Project: 12 kilometres Volta Grande Project Volta Grande Project direct impact area compared to Belo Monte Dam: 0.38% TSX: BSX | 34
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