Belo Sun Mining Corp. · TSX:BSX
Belo Sun Mining — Investor Presentation (July 2013)
53 slides from Belo Sun Mining's investor presentation, July 2013
Slide 1: The Largest Developing Gold Project in Brazil
TSX: BSX The LARGEST developing GOLD PROJECT in BRAZIL CORPORATE PRESENTATION July 2013
Slide 2: Cautionary Notes
Cautionary Notes All statements, other than statements of historical fact, contained or incorporated by reference in this presentation, but not limited to, any information as to the future financial or operating performance of Belo Sun, constitute ‘‘forward-looking information’’ or ‘‘forward-looking
Slide 3: BSX Opens TSX April 30th, 2012
BSX Opens TSX April 30th, 2012 TSX: BSX 3
Slide 4: Recent Events
Recent Events Summary Estimated Resource Updates and PFS January 23rd, 2012 - Measured and Indicated Mineral Resources of 2.22M oz @ 1.65 g/t Au, representing 70% increase - Inferred Mineral Resources of 1.53M oz @ 1.71 g/t Au, representing 38% increase in average gold grade April 25th, 2012 -
Slide 5: Experienced Board & Management
Experienced Board & Management BOARD OF DIRECTORS MANAGEMENT Peter Tagliamonte (Chairman) BRAZIL OPERATIONS TORONTO OFFICE Engineer Stan Bharti Carlos Costa Ian Pritchard Engineer Geologist (30 years experience) Chief Operating Officer Jay Hodgson Ricardo Lopes Ryan Ptolemy Geologist Geologist (27 y
Slide 6: Capital Structure
Capital Structure Shares Outstanding No. 265.9 million Fully Diluted No. 285.9 million Share Price C$ $0.45 * Market Capitalization C$ $120 million 52 Week High & Low C$ $1.83 - $0.44 Average Daily Volume No. 1,000,000 (3 month average) Cash & Cash Equivalents C$ $35 million ** *As at July 3rd ,2013
Slide 7: Key Projects
Key Projects Volta Grande (4.7 Moz M&I) (2.4 Moz Inf) TSX: BSX 7
Slide 8: Volta Grande Main Deposits (April 2013)
Volta Grande Main Deposits (April 2013) Ouro Verde Measured & Indicated: 42.6 Mt (2.3M oz) @ 1.73 g/t Au Inferred: 19.1 Mt (1.1M oz) @ 1.68 g/t Au Grota Seca Measured & Indicated: 45.5 Mt (2.4M oz) @ 1.62 g/t Au Inferred: 14.7 Mt (867k oz) @ 1.74 g/t Au Volta Grande Total Measured & Indicated: 88.1
Slide 9: Volta Grande
Volta Grande Topography View from Ouro Verde • Deposit located well above water line • Upstream damming of river will further reduce river level TSX: BSX 9
Slide 10: Volta Grande Drilling Program
Volta Grande Drilling Program 2010 – 2013 203,000 meters (760 holes) Completed since April 2010 TSX: BSX 10
Slide 11: Project Performance (After Tax)
Project Performance (After Tax) Project Data Prefeasibility Results Production Data Life of mine 10 Years Annual Mine Throughput 7 million tpy Metallurgical Recovery Au 94% Average Annual Gold Production 313,100 oz Average Waste to Ore Strip Ratio 6.88:1 Average Grade of M&I Resource 1.72 g/t Averag
Slide 12: Operating Cost Breakdown
Operating Cost Breakdown Cost per tonne Ore in Cost per Ounce Produced Category US$ in US$ Mining Cost per Tonne material moved 2.26 Mining 17.36 389.60 Processing 10.50 235.70 General and Administrative 2.52 56.60 Total US$30.38 US$681.90 Strip Ratio 6.88:1 TSX: BSX 12
Slide 13: Project NPV
Financial Gold Price Sensitivity Analysis 2,500 35% NPV - IRR Sensitivity 30% 2,000 25% 1,500 Project NPV 20% IRR 15% 1,000 NPV 0% 10% NPV 5% 500 IRR 5% - 0% 1,200 1250 1300 1350 1400 1450 1500 1550 1600 1650 1700 1750 1800 1850 1900 1950 2000 Gold Price TSX: BSX 13
Slide 14: Comparing PFS x April 2013 (CF)
Comparing PFS x April 2013 (CF)
Slide 15: Brownfields Exploration
Brownfields Exploration Ouro Verde Grota Seca Target Areas for future resource expansion *South Block Inferred Resource Estimate Exploration Camp -Inferred Pit Constrained – 5.4M tonnes @ 2.73 g/t Au containing 471k oz Au - Inferred Underground – 408k tons @ 3.89 g/t Au containing 51k oz Au GRANDE S
Slide 16: Regional Geology & BSX Sampling/Geophysics
Regional Geology & BSX Sampling/Geophysics Jatoba BSX airborne survey limit 11 DDH = 2,389m + auger drilling 11m @ 0.3 % Cu (up to 1.38% Cu) Geotem-mag airborne survey 28 km road access from Itata to BUMA grid soil sampling: up to 189 ppb Au (1km line spacing) Garimpinho 79.5 g/t Au in diorite
Slide 17: Artisanal Workings
Artisanal Workings TSX: BSX 17
Slide 18: Ouro Verde – Block Model Cross Section 900 NW
Ouro Verde – Block Model Cross Section 900 NW SW NE 0m MR Open Pit 70m Mining - Saprolite US$/t 1.06 Mining - Fresh rock Open Pit US$/t 1.41 g/t Au Processing US$/t 11.98 G&A US$/t 2.89 50m -200m 190m Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 Selling cost US$ / Oz 13.82 Au Price US$
Slide 19: Ouro Verde – Block Model Cross Section 525 NW
Ouro Verde – Block Model Cross Section 525 NW SW NE 120m 0m 60m MR Open Pit g/t Au 150m Mining - Saprolite US$/t 1.06 Mining - Fresh rock Open Pit US$/t 1.41 Processing US$/t 11.98 G&A US$/t 2.89 -200m Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 Selling cost US$ / Oz 13.82 Au Price US
Slide 20: Ouro Verde – Block Model Cross Section 300 NW
Ouro Verde – Block Model Cross Section 300 NW SW NE 0m 25m 120m MR Open Pit g/t Au Mining - Saprolite US$/t 1.06 70m Mining - Fresh rock Open Pit US$/t 1.41 Processing US$/t 11.98 G&A US$/t 2.89 Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 -200m Selling cost US$ / Oz 13.82 Au Price US$
Slide 21: Grota Seca – Block Model Cross Section 2575 W
Grota Seca – Block Model Cross Section 2575 W SSW NNE MR Open Pit Mining - Saprolite US$/t 1.06 Mining - Fresh rock Open Pit US$/t 1.41 Processing US$/t 11.98 G&A US$/t 2.89 Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 Selling cost US$ / Oz 13.82 Au Price US$ / Oz 1,400.00 Block Size:
Slide 22: Grota Seca – Block Model Cross Section 1875 W
Grota Seca – Block Model Cross Section 1875 W SSW NNE 75m 0m g/t Au 90m MR Open Pit Mining - Saprolite US$/t 1.06 -200m Mining - Fresh rock Open Pit US$/t 1.41 Processing US$/t 11.98 G&A US$/t 2.89 Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 30m Selling cost US$ / Oz 13.82 Au Price US
Slide 23: Grota Seca – Block Model Cross Section 825 W
Grota Seca – Block Model Cross Section 825 W SSW NNE 130m 190m g/t Au 0m MR Open Pit -200m Mining - Saprolite US$/t 1.06 Mining - Fresh rock Open Pit US$/t 1.41 60m Processing US$/t 11.98 G&A US$/t 2.89 Au recovery - Saprolite % 94 Au recovery - Fresh Rock % 94 Selling cost US$ / Oz 13.82 Au Price U
Slide 24: Resource Expansion (2009 to 2013)
Resource Expansion (2009 to 2013) Under Present Management 5,000,000 1.68 g/t Au 4,500,000 1.73 g/t Au 4,000,000 Measured Resources (Oz) 3,500,000 1.69 Indicated Resources (Oz) g/t Au 1.96 Au Oz 3,000,000 g/t Au 1.93 1.81 Inferred Resources (Oz) 1.66 g/t Au 2,500,000 1.24 g/t Au g/t Au g/t Au 2,000,
Slide 25: Volta Grande – Preliminary Project Layout
Volta Grande – Preliminary Project Layout TSX: BSX 25
Slide 26: Proposed Location of Plant Facility
Proposed Location of Plant Facility TSX: BSX 26
Slide 27: Breakdown by Elevation
Breakdown by Elevation VGP - Pit Constrained MR – Dec 2012 (Belo Sun) Tonnage AU_CUT_OK ELEVATION Au Oz T x 1000 g/t 100MD 1,984.585 1.63 104,042 90MD 2,396.744 1.64 126,130 80MD 2,698.913 1.71 148,399 70MD 2,954.230 1.73 164,075 60MD 3,072.351 1.72 169,485 50MD 3,055.131 1.72 169,195 40MD 2,997.026
Slide 28: Ouro Verde - Block Model 3D View
Ouro Verde - Block Model 3D View LOOKING SE (Pit year 2) 110 m 35 m 45 m 45 m TSX: BSX 28
Slide 29: Grota Seca - Block Model 3D View
Grota Seca - Block Model 3D View CENTRAL PORTION - LOOKING NW (Pit Year 5) 35 m 105 m 25 m 20 m 35 m TSX: BSX 29
Slide 30: Patrocinio Location Map
Patrocinio Location Map 18,750 Ha in the prolific Tapajos gold province TSX: BSX 30
Slide 31: Patrocinio Tapajos District
Patrocinio Tapajos District More than one million ounces of historical gold production at Patrocinio 3.0 km by 1.5 km soil geochemical anomaly defined Grab samples have returned gold values up to 37 g/t in granite and up to 67 g/t in veins IP geophysical survey completed 1,500 meter drill program co
Slide 32: Patrocinio Project Garimpeiro Mining
Patrocinio Project Garimpeiro Mining TSX: BSX 32
Slide 33: Top Countries for Mining Investment
Top 12 Countries for Mining Investment Country 2012 Total 2012 Change 2011 Total 2010 Total Points vs 2011 Points Points Australia 57 0 57 61 Canada 52 0 52 56 Chile 51 0 51 49 Brazil 45 0 45 42 Mexico 43 (-1) 44 45 United States 41 0 41 42 Colombia 39 0 39 39 Botswana 37 0 37 36 Peru 36 (-1) 37 33
Slide 34: LTM Share Performance
LTM Share Performance May 9, 2012 – May 9, 2013 100% Return Over Period 80% 60% 40% 20% – Spot Au: (8%) (20%) Emerging Gold Peers: (30%) S&P/TSX Global Gold: (31%) (40%) Belo Sun: (45%) (60%) Producing Gold Peers: (62%) (80%) May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 1 Source: TD Securities M
Slide 35: Independent Research Coverage
Independent Research Coverage Independent Research – Full Coverage Firm Analyst TD Securities Dan Earle CIBC Jeff Kileen BMO Capital Markets John P. Hayes National Bank Financial Shane Nagle Cormark Securities Richard Gray Canaccord Genuity Rahul Paul Dundee Capital Markets Joseph Fazzini Macquarie
Slide 36: Camp Site
Camp Site Acampamento da Bel TSX: BSX 36
Slide 37: Aerial View
Aerial View Four Aérea Si Regiao TSX: BSX
Slide 38: Artisanal Mining
Artisanal Mining TSX: BSX 38
Slide 39: Artisanal Mining
Artisanal Mining Garimpo TSX: BSX 39
Slide 40: Artisanal Mining
4 Artisanal Mining BELOP Onn MINING Garimpo TSX: BSX
Slide 41: The Right Deposit, Place, Time, People
THE RIGHT DEPOSIT….. THE RIGHT PLACE ….. THE RIGHT TIME….. THE RIGHT PEOPLE….. TSX: BSX 41
Slide 42: Volta Grande – Potential Crushing Plant
Volta Grande – Potential Crushing Plant Crushing Annual processing rate 7,000,000 t/y Crushing availability 70.0 % Nominal capacity 1,142 t/h Installed power 375 kW Type Gyratory Crusher Feed top size 1,000 mm Product P80 175 mm Number of units 1 unit Feed silo capacity: 128 t (86 m3) 5 min. TSX: BS
Slide 43: Volta Grande – Potential Milling Plant
Volta Grande – Potential Milling Plant Milling Plant Annual processing rate 7,000,000 t/y Availability 90.0 % Nominal capacity 888 t/h Feed P80 175 mm SAG discharge target P80 2.5 mm Ball mill discharge target P80 0.074 mm SAG mill 36 ft diam. X 20 ft EGL 1 unit Ball mill 26 ft diam. X 33 ft EGL 2 u
Slide 44: Volta Grande – Potential Leach Plant
Volta Grande – Potential Leach Plant Leach Plant Annual processing rate 7,000,000 t/y Availability 90.0 % Nominal capacity 888 t/h Feed P80 0.074 mm Leach feed thickener diameter 57.0 m Calculated leach plant recovery 89,23 - 90,91 % Calculated gold produced/week 5,921 - 6,048 oz Calculated silver p
Slide 45: Appendix Pre-feasibility
Appendix Pre-feasibility Life of Mine 10 years Annual production throughput 7 million tpy Metallurgical Recovery 94% Avg annual gold production 313,100 oz/yr Avg waste to ore strip ratio 6.88:1 Avg head grade 1.48 g/t CAPEX US$ 749 million OPEX US$ 31.70/t of Ore Cost per ounce US$ 711.50 NPV @ 5% U
Slide 46: Appendix Pre-feasibility
Appendix Pre-feasibility Mine Fleet Trucks 180 t, Shovels 15m3 Process Gyratory Crusher, SAG and 2 ball mills Gravity Circuit Carbon in Leach Elution and Carbon Regeneration Electrowinning Smelting Cyanide Destruct Tailings Management Facility Situated in a natural basin TSX: BSX 46
Slide 47: Appendix Pre-feasibility
Appendix Pre-feasibility CRUSHING THICKENING STOCKPILE CARBON IN LEACH CYANIDE DETOX SEMI AUTOGENOUS ELUTION CARBON MILLING, BALL REGENERATION MILLING TAILINGS TREATMENT GRAVITY SEPARATION ELECTROWINNING INTENSIVE LEACHING SMELTING DORE BARS TSX: BSX 47
Slide 48: Appendix Volta Grande Capital Cost Estimate
Appendix Volta Grande Capital Cost Estimate Value without Taxes Value with Taxes Area Description % of CAPEX (USDx1000) (USDx1000) General (Assemblies) 52,573 57,551 7.68% Mine 121,528 126,127 16.84% Plant – General 91,471 101,508 13.55% Crushing 11,412 12,186 1.63% Storage/Ore transference 5,087 5,
Slide 49: Appendix Mineral Resource Estimate
Appendix Mineral Resource Estimate VOLTA GRANDE PROJECT RESOURCE ESTIMATE MEASURED + VOLTA GRANDE RESOURCE ESTIMATE MEASURED INDICATED INFERRED INDICATED Ouro Verde Pit Constrained Tonnes (‘000s) 24,479 18,091 42,570 18,196 Grade (g/t Au) 1.79 1.65 1.73 1.68 Ounces (‘000s) 1,409 960 2,372 983 Ouro V
Slide 50: Appendix Mineral Resources Parameters
Appendix Mineral Resources Parameters (a) The gold mineralization envelopes were modelled into wireframe solids using a 0.5 g/t Au cut-off grade in fresh and saprolite rocks utilizing vertical and horizontal sections. 3D shells were generated by linking horizontal sections each 10m apart. (b) A spec
Slide 51: Appendix Resource Depth
Appendix Resource Depth Approximately 74% (65 million tonnes) of the resource occurs within 200 meters from surface < 50m 13M tonnes 15 < 100m 31M tonnes 35 Meters below actual topographic surface < 150m 49M tonnes 55 < 200m 65M tonnes 74 > 200m 89M tonnes 100 0 10 20 30 40 50 60 70 80 90 100 Cumula
Slide 52: Appendix Local Geology
Appendix Local Geology Gold mineralization is associated with a major shear zone and is hosted in intense hydrothermally altered rocks with close association with disseminated sulphides (py/apy): Intense silicification with fine- grained sulphide (mainly apy) within strongly sheared diorite – Grota
Slide 53: Appendix Project Overview
Appendix Project Overview Definitive Feasibility Study underway – AMEC, Oakville, Canada – Q4 2013 203,000 metres and 760 holes drilled to date ACME Preparation Lab on site for assays – Construction Completed July 2011 Preliminary Mining Engineering Studies – NCL – Completed June 2011 Diagnostic Lea