Belo Sun Mining (BSX-T) has recently 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 the South Block deposits, namely Pequi, Grande and Itata, host 4 million tonnes averaging 2.75 grams gold per tonne for 356,000 oz. gold in the inferred category.
The bulk of the mineralization about 310,000 oz. averaging 2.64 grams gold is in the open-pit, which uses a 0.5-gram cutoff. The rest lies underground at an average grade of 3.82 grams. The cutoff for the underground is 2 grams.
The maiden resource estimate outlines the geological potential the company has on the 120-km-long Tres Palmeiras greenstone belt, said Mark Eaton, Belo Sun’s president and CEO, in a statement.
The South Block sits about 7 km from Volta Grande’s main Grota Seca and Ouro Verde deposits, which host 2.85 million oz. gold in measured and indicated 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 key 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,” writes BMO analyst John Hayes 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, said Helio Diniz, the company’s vice-president of exploration. Belo Sun will also continue with exploration drilling in the area.
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 by May 1, 2012. Since then, Belo Sun drilled 7 more holes that are pending assays.
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