Photo by: Belo Sun Mining
TORONTO (miningweekly.com) – The TSX-listed stock of Brazil-focused Belo Sun closed significantly higher on Wednesday after a Brazil court had repealed an injunction that had suspended licensing for its Volta Grande gold-mining project.
The Canadian junior’s shares closed 22.39% higher at C$0.41 apiece.
Toronto-based Belo Sun said it was “pleased” with the decision of the Court of Appeal judge and would continue to work with regulatory and legal authorities to advance the project licensing process.
President and CEO Mark Eaton added that the next step would be to complete a meeting of the Environmental Council of Para state, in Brazil, regarding the preliminary licence on December 2.
On November 21, a federal judge ordered the immediate suspension of environmental licensing for Votla Grande, in response to a civil lawsuit filed earlier this month by the Federal Public Prosecutor's office.
Volta Grande itself is situated alongside the Xingu river's ‘Big Bend’, or the ‘Volta Grande’ upon which the Brazilian government had started construction of the world's third largest hydro-damming facility - the Belo Monte hydro dam.
An October updated mineral resource, which was based on results from 94 additional drill holes, or 22 595 m of drilling, and which built on the April mineral resource, contained measured and indicated pit-constrained resources of 5.1-million, grading 1.68 g/t on average.
The inferred pit-constrained resources totalled 2.4-million ounces at an average grade of 1.69 g/t gold.
The deposit has an underground resource of about 14 000 oz of gold at an average grade of 3.01 g/t in the indicated category and 184 000 oz at an average grade of 3.33 g/t gold in the inferred category.