Belo Sun Mining (BSX-T) has tabled an initial resource estimate for its newly delineated South Block area at the Volta Grande gold project in Brazil’s Para State.
The estimate shows that the Pequi, Grande and Itata deposits host 4 million inferred tonnes averaging 2.75 grams gold per tonne for 356,000 oz. gold.
The bulk of the mineralization — about 310,000 oz. averaging 2.64 grams gold — is in the open-pit category, which uses a 0.5-gram cut-off. The rest lies below the pit outline an average grade of 3.82 grams. The cut-off underground is 2 grams.
The maiden resource estimate outlines geological potential on the 120-km-long Tres Palmeiras greenstone belt, says Mark Eaton, Belo Sun’s president and CEO, in a statement.
The South Block is located 7 km from Volta Grande’s main Grota Seca and Ouro Verde deposits, which host 2.85 million oz. gold in the measured and indicated category from 52.5 million tonnes grading 1.69 grams gold, plus 2 million oz. in inferred from 36 million tonnes at 1.70 grams.
Belo Sun expects to complete a prefeasibility study on the two deposits by August and a feasibility study in December.
“Although the [South Block] resource is small compared with the main deposits, the relatively high grades are encouraging and the mineralization remains open along strike and at depth,” BMO analyst John Hayes writes in a note to clients.
Given the promising results to date, the junior plans to conduct systematic resource delineation drilling for the South Block targets, says Helio Diniz, the company’s vice-president of exploration. Belo Sun will also continue with exploration drilling.
The South Block is the first area outside of the main deposits to be widely drilled. The initial resource at South Block is based on 48 holes completed up to May 1. Since then, Belo Sun has drilled seven more holes, for which assays are pending.
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