Belo Sun Mining Corp. · TSX:BSX
Belo Sun Mining — Investor Presentation (July 2019)
24 slides from Belo Sun Mining's investor presentation, July 2019
Slide 1: Developing the Open Pit Volta Grande Gold Project, Brazil
Developing the Open Pit Volta Grande Gold Project, Brazil The largest undeveloped gold deposit in Brazil July 2019 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: Volta Grande Gold Project
Volta Grande Gold Project Location Mining Highlights Strong Economics ▪ Largest undeveloped gold ▪ 268kozAu/yr (first 10 yrs) ▪ CAPEX of $298 million deposit in Brazil ▪ Reserves: 3.8 Moz at 1.02 g/t (1) ▪ Post-Tax NPV of $665M; ▪ Para is 2nd most active mining state ▪ AISC operating costs: $779/ozA
Slide 4: Volta Grande Project Location
Volta Grande Project Location Para is the 2nd most active mining state in Brazil ▪ Estimated mineral resources of 6.2 million Au oz: Largest undeveloped gold project in Brazil ▪ Para has a well developed mining Infrastructure, mining services and a large experienced labour pool ▪ Project located in
Slide 5: Excellent Infrastructure
Excellent Infrastructure Altamira City – 150,000 residents Altamira Airport Belo Monte & Pimental Dams Easy Accessible by road World’s 3rd largest hydroelectric dam Volta Grande Property Outline Volta Grande Exploration Camp TSX: BSX | 5
Slide 6: Mining Highlights
Mining Highlights Feasibility Study Highlights (March 2015) Production ▪ First 10 years: 268,000 oz gold annually (2) ▪ Avg. LOM annual gold production of 205,000 oz (17 yr mine life) Economics ▪ Pre-Tax IRR of 37%; Post-Tax IRR of 26% ($1,200/oz Au) ▪ Pre-Tax NPV of $942 M; Post-Tax NPV of $665 M (
Slide 7: Operating Costs, Grade & Annual Production
Mining Highlights Operating Costs, Grade & Annual Production* $40.00 1.80 300,000 275,000 $35.00 1.60 250,000 Cost per Tonne Ore Milled 1.40 $30.00 225,000 Ounces Produced 1.20 200,000 Grade (g/t) $25.00 175,000 1.00 $20.00 150,000 0.80 125,000 $15.00 0.60 100,000 $10.00 75,000 0.40 50,000 $5.00 0.2
Slide 8: Strong Economics
Strong Economics $1,200/oz Au; $US1:R3.10 $1,200/oz Au; $US1:R3.9 $1,400/oz Au; $US1:R3.9 (Feasibility Study, March 2015) ▪ Post-Tax IRR of 36.7% ▪ Post-Tax IRR of 49.1% ▪ Post-Tax IRR of 26% ▪ Post Tax NPV @ 5% $854M ▪ Post Tax NPV @ 5%: $1,231M ▪ Post-Tax NPV @5%: $665M ▪ 2.9 year payback ▪ 2.3 ye
Slide 9: Strong Economics: Cash Flow Model
Strong Economics Cash Flow Model (after-tax) $1,300/oz Au; $US1:R3.7 $1,200/oz Au; $US1:R3.1 (Feasibility Study, March 2015) TSX: BSX | 9
Slide 10: Permitting and Engineering Status
Permitting and Engineering Status Environmental Licence granted in 2012 ▪ Issued by the State of Para (Second largest Mining State in Brazil) ▪ The State of Para Environmental Agency is SEMAS (State Environmental Agency for the Government of Para). ▪ SEMAS issued the Environmental Licence in 2012 Ba
Slide 11: Permitting and Engineering Status (cont'd)
Permitting and Engineering Status (cont’d) 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 decline
Slide 12: Mineral Resources & Reserves
Mineral Resources & Reserves GREIA EXPLORATION VOLTA GRANDE CONCESSIONS MINING PROJECT SOUTH BLOCK Mineral Resources(2) & Reserves(1) Tonnes Gold Grade Contained Gold Volta Grande P&P Reserves 115,969,000 1.02 g/t 3,788,000 oz M&I Resource 156,593,000 0.98 g/t 4,956,000 oz Inferred Resource 39,767,0
Slide 13: Exploration Upside
Exploration Upside VOLTA GRANDE SOUTH BLOCK 250,000 Drilling has translated to Excellent mineral significant mineral growth growth potential in in the North Block. the South Block with further drilling. 200,000 150,000 Meters Drilled * 100,000 50,000 Ind: M&I: M&I: 0.8 Moz 5 Moz 0.2 Moz Inf: Inf: In
Slide 14: Next Steps
Next Steps Continue Project Development Activities in Advance of Construction ▪ Complete the indigenous data collection ▪ Finalizing discussions with mine contractors ▪ Experienced, Brazil-based operations team in place ▪ Mining software training ▪ Continue engineering work ▪ Supporting permits (qua
Slide 15: Appendices
Appendices
Slide 16: Company Structure & Performance
Company Structure & Performance Capitalization Summary (Q1 ending Mar. 31, 2019) Major Shareholder Distribution Sun Valley Gold ~20% Shares Outstanding 442,631,915 Canadian Gold Funds ~20% Options 17,335,333 Management & Insiders ~15% European Gold Funds ~7% US Gold Funds ~6% Cash & Cash Equivalents
Slide 17: 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 18: Volta Grande Site Plan (Feasibility Study, Mar. 2015)
Volta Grande Site Plan (Feasibility Study, Mar. 2015)
Slide 19: 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 20: 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 $20.4 M
Slide 21: Enterprise Value per Mineral Resource
Enterprise Value per Mineral Resource Belo Sun compelling valuation – significantly undervalued to peers (US$/AuEq oz) Source: BMO Capital Markets TSX: BSX | 21
Slide 22: Post-Payback Mine Life
Post-Payback Mine Life Source: BMO Capital Markets TSX: BSX | 22
Slide 23: Capital as % of NPV
Capital as % of NPV 1,221% 189% 133% 102% 96% 96% 86% 81% 73% 72% 45% 45% Source: BMO Capital Markets TSX: BSX | 23
Slide 24: Thank You
Thank You Belo Sun Mining Corp. 65 Queen Street West, Suite 800 Toronto, Ontario | M5H 2M5 info@belosun.com TSX:BSX