TORONTO (miningweekly.com) – Brazil-focused exploration company Belo Sun this week announced results of a prefeasibility study (PFS) for its flagship Volta Grande project in central Brazil.
The study placed a potential after-tax net present value of $474.2-million on the project, using a 5% discount rate. The study had also indicated an internal after-tax rate of return of 15.2%.
Belo Sun on Monday said the study had confirmed a ten-year life-of-mine, producing 313 100 oz/y.
The mine would cost $749.11-million to construct, after which costs to sustain operations, including closure costs would total $19.62-million a year.
The Volta Grande mine would have a seven-million-ton-a-year throughput with an average waste-to-ore strip ratio of 6.88:1.
The average grade of the National Instrument 43-101-compliant measured and indicated resources were 1.72 g/t, declining to 1.48 g/t after mining dilution was accounted for.
The total cash operating cost, including royalties totalled $711.50/oz.
Belo Sun recently released an updated mineral resource estimate that stated contained gold in the measured and indicated categories improved to 4.7-million ounces. The project also held an expected 2.5-million ounces more in the inferred category.
Another updated resource estimate was expected in the third quarter, which would ultimately be worked into a definitive feasibility study (DFS) that could push proven and probable gold reserves at Volta Grande above three-million ounces.
Release of the DFS is scheduled for Q4 2013 and a construction decision is expected shortly thereafter. First production from the mine was expected in early 2016.
The company’s shares were down almost 30% on Tuesday afternoon, having lost C$0.20 a share to trade at C$0.69.