Company
ASX: BGL
Bellevue Gold Ltd (ASX:BGL) is advancing the historical Bellevue Gold Mine in Western Australia, a site that was once one of Australia’s highest-grade gold mines, producing 800,000 ounces at 15 g/t gold from 1986 to 1997. The company has a resource of 3 million ounces at 9.9 g/t gold, including an indicated resource of 1.4 million ounces at 11 g/t, making it one of the highest-grade undeveloped gold discoveries in the world. Bellevue hopes to join Australia's fleet of gold producers in 2022.
119 stories · page 3 of 6
The injection of funds also means the company has sufficient money in the bank to maintain an aggressive multi-pronged exploration program, which will be conducted in parallel with the development of its historic high-grade mine in WA.
Darren Stralow has been appointed chief executive officer and Bill Stirling as general manager. They "bring a wealth of experience in the key areas of project development and operations, commercial management and contractual negotiations,”
The SPP follows an institutional share placement that raised A$106 million with the company now fully funded to development.
"This was a pivotal quarter which locked in Bellevue’s future as a substantial low-cost, high margin Australian gold producer. We are also forecast to generate the lowest carbon emissions per ounce of any major Australian gold miner," says
“We continue to see BGL as one of the most exciting near-term development (or takeover) opportunities in the Australian gold space. SPEC BUY maintained, price target A$1.40.” - Canaccord Genuity.
“By demonstrating the accuracy of the resource with such close-spaced drilling, we continue to de-risk the project,” says MD.
Canaccord sees Bellevue as one of the most exciting near-term development (or takeover) opportunities in the Australian gold space.
Optimisation work is underway to upgrade more of the remaining 1.4 million ounces which sit outside of the current mine plan and add to the Stage 2 Feasibility Study resource of 1.56 million ounces.
The placement proceeds, together with the gold explorer’s $200 million debt facility, will support the Bellevue Gold Project — forecast to rank among the world’s leading gold assets — as it works towards production in June 2023.
The project is now funded to production with a A$200 million loan secured, an underwritten A$106 million equity raising underway and a A$25 million share purchase plan.
The company is considering the option of expanding the planned 750,000 tonnes per annum processing plant to 1 million tonnes per annum.
The company continues to invest significantly in future reserve growth ahead of production as a central pillar of the exploration strategy.
The belle of the WA Goldfields has garnered strong attention, with 12 indicative debt financing proposals already received.
Canaccord Genuity continues to see Bellevue as an exciting development proposition while it believes Red River is near an FCF (free cash flow) inflection point.
While project funding discussions continue to progress rapidly with 12 indicative proposals received from lenders, the new resource is set to underpin the upgraded stage-2 study anticipated for release this quarter.
The total resource has increased by 25% since Bellevue’s Stage 1 Feasibility Study in February 2021, while the indicated resource has grown by 34% in the same period.
Macquarie views the decision to push back the drill cut-off date as prudent given the flow of strong drill intersections since the last cut-off date (November 2020) with 7 rigs currently operating at site.
The latest assays from Bellevue Gold Project support a proposal to upscale the asset’s production capacity and could meaningfully impact the broader gold resource.
The report indicated a resource/reserve update is expected to be released ahead of, or in parallel with the Stage Two Feasibility Study (expected in the September quarter of 2021) for the company’s Bellevue Gold Project.
The company believes that the extensive experience of Amber Stanton in law, corporate governance and mining industry M&A, will be vital in achieving its goal of becoming a significant WA gold producer.
