Insiders light fire under Belo Sun, shares rocket 44%

Belo Sun Mining (TSE:BSX) rocketed more than 44% on Tuesday in heavy volume as punters take a cue from insiders to grab stock.

Belo Sun's gains were not driven by any fresh news about its 7.6 million ounce Volta Grande project in Brazil, but positive momentum have been building for the stock with insiders picking up shares on the open market and a positive resource upgrade announcement recently.

In afternoon dealings the explorer was trading up 34.7% at $0.54 on the Toronto big board, at its highs for the day. More than 1m shares or over three times usual daily volume in the $126 million company had changed hands by 2m EST on Tuesday.

Volta Grande is Brazil's largest gold project under development and the October 4 resource update increased by 24% or 1 million ounces the contained measured and indicated ounces over the December 2012 estimates which formed the basis of the company's May 2013 pre-feasibility study.

Belo Sun is considered an attractive takeover target as the economics of the Amazon basin project improves thanks to higher grades, a fall in the value of the Brazilian real and approvals for the contentious project draw closer.

A definite feasibility study are expected in the fourth quarter or early 2014 and a preliminary licence for the $750 million project on the Xingu river is expected later this year.