SLIDE 1
De ve loping an Ope n Pit Gold Pr
- je c t in Br
azil
Ja nua ry 2019
Cur r e nc y: All do lla rfig ure s re pre se nt U.S do lla rs unle ss o the rwise no te d. Mar ke t and Industr y Data: Unle ss o the r
wise indic a te d, the ma rke t a nd industry da ta c o nta ine d in this do c ume nt is b a se d upo n info rma tio n fr
- m inde pe nde nt industry p ub lic a tio ns, ma rke t re se a rc h, a nalyst re po rts a nd surve ys a nd
- the r pub lic ly a va ila b le so urc e s. Altho ug h Be lo Sun Mining Co rp. (“Be lo Sun” o r the “Co mpa ny”) b e lie ve s the se so urc e s to b e g e ne ra lly re lia b le , ma rke t da ta is sub je c t to inte rpre ta tio n a nd c a nno t b e ve rifie d with c o mple te
c e rta inty due to limits o n the a va ila b ility a nd r e lia b ility o f ra w da ta , the vo lunta ry na tur e o f the da ta g a the ring pr
- c e ss a nd o the r limita tio ns a nd unc e rta intie s inhe r
e nt in a ny surve y. T he Co mpa ny ha s no t inde pe nde ntly ve rifie d a ny o f the da ta fro m third pa rty so urc e s re fe rre d to in this do c ume nt a nd a c c o rding ly, the a c c ura te ne ss a nd c o mple te ne ss o f suc h da ta is no t g ua ra nte e d.
Non- IF RS F inanc ia l Me asur e s: Ce rta in te rms use d he re in a re c o nside re d “No n-I
F RS fina nc ia l me a sure s” within the me a ning o f a pplic a b le Ca na dia n se c uritie s laws. Suc h me a sure s ha ve no sta nda rdize d me a ning unde r Inte r na tio na lF ina nc ia l Re po rting Sta nda rds a nd sho uld no t b e c o nside re d in iso la tio n o ra s a sub stitute fo rme a sure s o f pe rfo rma nc e pre pa re d in a c c o rda nc e with Inte r na tio na lF ina nc ia l Re po rting Sta nda rds.
F
- r
war d- L
- oking State me nts: All sta te me nts, o the rtha n sta te me nts o f histo ric a l fa c t, c o nta ine d o rinc o rpo ra te d b y r
e fe r e nc e in this pre se nta tio n, c o nstitute ‘ ‘ fo rwa rd-lo o king info rma tio n’ ’ o r‘ ‘ fo r wa rd-lo o king sta te me nts’ ’ within the me a ning o f c e r ta in se c uritie s la ws, a nd a re b a se d o n e xpe c ta tio ns, e stima te s a nd pro je c tio ns a s o f the da te o f this pre se nta tio n. F
- rwa rd-lo o king sta te me nts inc lude , witho ut limita tio n, sta te me nts with re spe c t to : po ssib le e ve nts,
the futur e pric e o f g o ld, the e stima tio n o f mine ra l r e se rve s a nd mine ra l r e so urc e s, the r e a liza tio n o f mine ral r e se rve and mine ra l r e so urc e e stima te s, the timing a nd amo unt o f e stima te d future pro duc tio n, c o sts o f pro duc tio n, c a p ita l e xpe nditure s, c o sts a nd timing o f the de ve lo pme nt o f pro je c ts a nd ne w de po sits, suc c e ss o f e xplo ra tio n, de ve lo pme nt and mining a c tivitie s, pe rmitting time line s, c urre nc y fluc tua tio ns, re q uire me nts fo r a dd itio na l c a p ita l, g o ve r nme nt r e g ula tio n o f mining o pe ra tio ns, e nviro nme nta l risks, una ntic ip a te d r e c la ma tio n e xpe nse s, title dispute s o r c la ims, a nd limita tio ns o n insura nc e c o ve ra g e . T he wo rds “a ntic ipa te s”, ‘ ‘ pla ns’ ’ , ‘ ‘ e xpe c ts’ ’ , “ind ic a tive ”, “inte nd”, ‘ ‘ sc he dule d’ ’ , “time line ”, ‘ ‘ e stima te s’ ’ , ‘ ‘ fo r e c a sts”, “g uida nc e ”, “o ppo rtunity”, “o utlo o k”, “po te ntia l”, “pro je c te d”, “sc he dule ”, “se e k”, “stra te g y”, “study” (inc lud ing , witho ut limita tio n, a s ma y b e q ua lifie d b y “fe a sib ility” a nd “pre -fe a sib ility”), “ta rg e ts”, “mo de ls”, o r ‘ ‘ be lie ve s’ ’ , o r va ria tio ns o f o r simila r suc h wo rds a nd phra se s o r sta te me nts tha t c e rta in a c tio ns, e ve nts o r r e sults ‘ ‘ ma y’ ’ , ‘ ‘ c o uld’ ’ , ‘ ‘ wo uld’ ’ , o r ‘ ‘ sho uld’ ’ , ‘ ‘ mig ht’ ’ , o r ‘ ‘ will be ta ke n’ ’ , ‘ ‘ o c c ur’ ’ o r ‘ ‘ be a c hie ve d’ ’ a nd simila r e xpre ssio ns ide ntify fo rwa rd-lo o king sta te me nts. F
- rwa rd-lo o king sta te me nts a re ne c e ssa rily b a se d upo n a numb e r o f e stima te s a nd a ssumptio ns tha t, while c o nside re d re a so na b le b y Be lo
Sun a s o f the da te o f suc h sta te me nts, a re inhe re ntly sub je c t to sig nific a nt b usine ss, e c o no mic a nd c o mpe titive unc e rta intie s a nd c o nting e nc ie s. T he e stima te s, mo de ls a nd a ssumptio ns o f Be lo Sun re fe r e nc e d, c o nta ine d o r inc o rpo ra te d b y re fe r e nc e in this pre se nta tio n, whic h ma y pro ve to b e inc o r re c t, inc lude , b ut a r e no t limite d to , the va rio us a ssumptio ns se t fo r th he re in a nd in the mo st re c e ntly file d a nnua l info rma tio n fo rm a nd MD&A re po rt a s we ll a s: (1) the re b e ing no sig nific a nt d isruptio ns a ffe c ting the o pe ra tio ns o f Be lo Sun o r any e ntity in whic h it no w o r he re a fte r dire c tly o r ind ire c tly ho lds a n inve stme nt, whe the r due to la b o ur disruptio ns, sup ply d isruptio ns, po we r d isruptio ns, da ma g e to e q uipme nt o ro the rwise ; (2) po litic a l a nd le g al de ve lo pme nts in Bra zil b e ing c o nsiste nt with Be lo Sun’ s c urre nt e xpe c ta tio ns; (3) the e xc hang e r a te b e twe e n the Cana d ia n do lla r, Bra zil re a l and the U.S. do lla r b e ing a ppro xima te ly c o nsiste nt with c urr e nt le ve ls; (4) c e rta in pric e a ssumptio ns fo r g o ld; (5) pric e s fo r die se l, na tura l g a s, fue l o il, e le c tric ity a nd o the r ke y supplie s b e ing a ppro xima te ly c o nsiste nt with c urr e nt le ve ls; (6) pro duc tio n a nd c o st o f sa le s fo r e c a sts fo r Be lo Sun, and e ntitie s in whic h it no w o r he r e a fte r dire c tly o r indire c tly ho lds a n inve stme nt, me e ting e xpe c ta tio ns; (7) the a c c ura c y o f the c ur re nt mine ra l re se rve a nd mine ra l re so urc e e stima te s o f Be lo Sun (inc lud ing b ut no t limite d to o re to nnag e a nd o r e g ra de e stima te s) a nd a ny e ntity in whic h it no w o r he re a fte r dire c tly o r indire c tly ho lds a n inve stme nt; (8) la b o ur a nd ma te ria ls c o sts inc re a sing o n a ba sis c o nsiste nt with Be lo Sun’ s c urr e nt e xpe c ta tio ns; (9) the via b ility o f the Vo lta Gra nde Pr
- je c t (inc lud ing b ut no t limite d to the impa c t o f o r
e to nna g e a nd g ra de va ria b ility re c o nc ilia tio n ana lysis) a s we ll a s pe rmitting , de ve lo pme nt and e xpa nsio n b e ing c o nsiste nt with Be lo Sun’ s c urre nt e xpe c ta tio ns; (10) a c c e ss to c a p ita l ma rke ts; a nd (11) unc e rta intie s with r e spe c t to o b ta ining the r e q uire d lic e nse fo r the Vo lta Gra nde Pro je c t. Kno wn a nd unkno wn fa c to rs c o uld c a use a c tua l re sults to diffe r ma te ria lly fr
- m tho se pr
- je c te d in the fo rwa rd-lo o king sta te me nts. Suc h fa c to rs inc lude , b ut a re no t limite d to , fluc tua tio ns in the c urr
e nc y ma rke ts; fluc tua tio ns in the spo t and fo rwa rd pric e o f g o ld o r c e rta in
- the r c o mmo ditie s (suc h a s d ie se l fue l and e le c tric ity); inc re a se s in the disc o unt r
a te s a pplie d to pr e se nt va lue ne t futur e c a sh flo ws b a se d o n c o untry-spe c ific re a l we ig hte d a ve ra g e c o st o f c a pita l; de c line s in the ma rke t va lua tio ns o f pe e r g r
- up g o ld pro duc e rs a nd Be lo Sun, and the r
e sulting impa c t o n ma rke t pric e to ne t a sse t va lue multiple s; a nd c hang e s in inte r e st ra te s o r g o ld pric e s. Ac c o rd ing ly, re a de rs sho uld no t pla c e undue r e lia nc e o n fo rwa rd-lo o king info rma tio n. T he Co rpo ra tio n do e s no t unde rta ke to upda te a ny fo rwa rd-lo o king info rma tio n, e xc e pt in a c c o rda nc e with a pplic a b le se c uritie s la ws.
Infor mation Re gar ding Sc ie ntific and T e c hnic al Infor mation: T
he q ua lifie d pe rso ns re spo nsib le fo r the pr e pa ra tio n o f the “Vo lta Gra nde Pro je c t, Pa rá , Bra zil NI 43-101 T e c hnic a l Re po rt” e ffe c tive a s o f Ma rc h 30, 2015, a re the fo llo wing : De r e k Chub b , P.E ng ., o f E nviro nme nta l Re so urc e s Ma na g e me nt I nc .; Dr. L a rs We ie rha use r, PhD, P.Ge o ., Dr. Je a n-F ra nc o is Co uture , P.Ge o ., a nd Dr. Oy L e ua ng tho ng , P.E ng . (Mine ra l Re so urc e ), o f SRKCo nsulting (Ca na d a ) I nc .; Go rdo n Zur
- wski, P.E
ng (Mining ), o f AGP Mining Co nsulta nts I nc .; Ale xa ndre L uz, MAusIMM (Ec o no mic Ana lysis) o f L &M Adviso ry; Aro n Cle ug h (Me ta llurg y a nd Pr
- c e ss) a nd Ste fa n Gue o rg uie v, P.E
ng . (I nfra struc ture and Autho r
- f the T
e c hnic a l Re po r t), o f L yc o po dium Mine ra ls Ca na da L td.; Pa ulo F ra nc a , AusIMM, o f VOGBR Re c urso s Hidric o s e Ge o te nc ia L tda .; a nd Ge o r g e Wa hl, P.Ge o , o f W.H. Wa hl & Asso c ia te s Co nsulting ; e a c h o f who m ar e “inde pe nde nt” o f Be lo Sun within the me a ning o f Na tio na l I nstrume nt 43-101 – Sta nda rds o f Disc lo sure fo r Mine ra l Pr
- je c ts (“NI 43-101”), a nd is c o nside re d, b y virtue o f his e duc a tio n, e xpe rie nc e , a nd pro fe ssio na l a sso c ia tio n, to be
a “q ua lifie d pe rso n” within the me a ning o f NI43-101. Sté phane Amire a ult, VP E xplo ra tio n fo r Be lo Sun and a “q ua lifie d pe rso n” unde r NI 43-101 b y virtue o f his e duc a tio n, e xpe rie nc e , a nd pr
- fe ssio na l a sso c ia tio n, ha s re vie we d a nd a ppro ve d the sc ie ntific a nd te c hnic a l info rma tio n
he re in. T he sc ie ntific a nd te c hnic a l info rma tio n inc lude d in this do c ume nt re g a rding the Vo lta Gra nde Pr
- je c t ha s b e e n summa rize d fro m the T
e c hnic a l Re po rt, a nd is q ua lifie d in its e ntire ty with re fe r e nc e to the full te xt o f the T e c hnic a l Re po r t a nd is sub je c t to a ll the a ssumptio ns, c o nditio ns a nd q ua lific a tio ns se t fo r th in the T e c hnic a l Re po rt. Se e the T e c hnic a l Re po r t, e a c h file d o n the Co rpo ra tio n’ s pro file a t www.se da r.c o m, fo r de ta ils re g a rding the da ta ve rific a tio n unde rta ke n with re spe c t to the sc ie ntific a nd te c hnic a l info rma tio n inc lude d in this do c ume nt re g a rding the Vo lta Gra nde Pro je c t, fo r a dd itio na l de ta ils re g a rding the r e la te d e xplo ra tio n info rma tio n, inc lud ing inte rpre ta tio ns, sa mple , a na lytic a l a nd te sting re sults a nd fo ra dditio na l de ta ils re g a rding the mine ra l re so urc e a nd mine ra l re se rve e stima te s disc lo se d he re in. Due to the unc e r ta inty tha t ma y b e a ttac he d to infe rr e d mine ra l re so urc e e stima te s, it c a nno t be a ssume d tha t a ll o r a ny pa rt o f an infe r r e d mine ra l r e so urc e e stima te will b e upg ra de d to an ind ic a te d o r me a sure d mine ral re so urc e e stima te a s a re sult o f c o ntinue d e xplo ra tio n. Co nfide nc e in a n infe rr e d mine ra l re so urc e e stima te is insuffic ie nt to a llo w me aning ful a pplic a tio n o f the te c hnic a l a nd e c o no mic pa ra me te rs to e na b le an e va lua tio n o f e c o no mic via b ility suffic ie nt fo r pub lic d isc lo sure , e xc e pt in c e r ta in limite d c irc umsta nc e s se t o ut in NI 43-101. T he mine ra l r e so urc e e stima te inc lude s infe r re d mine ral re so urc e s tha t a r e c o nside re d to o spe c ula tive g e o lo g ic a lly to ha ve e c o no mic c o nside ra tio ns a pplie d to the m tha t wo uld e na b le the m to b e c a te g o rize d a s mine ra l re se rve s. T he r e is a lso no c e r ta inty tha t the se infe rr e d mine ral re so urc e s will b e c o nve rte d to the me a sure d a nd ind ic a te d c a te g o rie s thro ug h furthe rdrilling , o rinto mine ra l re se rve s, o nc e e c o no mic c o nside ra tio ns a re a pplie d. T he re is no a ssura nc e tha t mine ra l re so urc e s will b e c o nve rte d into mine ra l re se rve s.
Note s to Mine r al Re sour c e and Mine r al Re se r ve E stimate s: T
he CIM De finitio n Sta nda rds we re fo llo we d fo r Mine ra l Re so urc e s a nd Mine ra l Re se rve s. I nfe r r e d Mine ra l Re so urc e s a re e xc lusive o f the Me a sure d a nd I ndic a te d Mine ra l Re so urc e s. Me a sure d a nd Indic a te d Mine ra l Re so urc e s a re inc lusive o f Mine ra l Re se rve s.
Intr
- duc tor
y Matte r s
T SX: BSX | 2