Brazil-focused Belo Sun Mining (TSX:BSX) was up 6% today after the Toronto-based company released an updated resource estimate on its Volta Grande gold project.
The estimate, based on 112 new drill holes, ups the measured and indicated resources by 28%. The proposed open-pit mine now contains 2.85 million ounces of gold with an average grade of 1.69 g/t Au.
"When our team started a couple of years ago in 2010, the estimated mineral resources for Volta Grande were approximately 715,000 ounces grading 1.1 g/t Au in the indicated category, and the inferred category was 1,388,000 oz grading less than 1.0 g/t Au. The new mineral resources statement has expanded substantially and the average grade has increased significantly," said President and CEO Mark Eaton.
Belo Sun says its next priority is to convert the prove up the inferred resources and continue defining extensions to the gold deposits. A prefeasibility study is expected by the third quarter. Belo Sun has two other development projects in Brazil, Patrocinio and Rainbow.