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Bellevue Gold outlines “outstanding quarter” for namesake project with significant scope for growth

Published: 06:57 23 Apr 2020 BST

Bellevue Gold Ltd - Bellevue Gold outlines “outstanding quarter” for namesake project with significant scope for growth
The company is well funded with $37.8 million in cash as at March 31

Bellevue Gold Ltd (ASX:BGL) has outlined its achievements during the March 2019 quarter during which the Bellevue Gold Project has been established as a large, high-grade WA gold project with significant scope for more growth.

The highlights of the quarter include:

Resource growth

Total inferred resource at the Bellevue Gold Project rose 23% to 6.1 million tonnes at 11.3 g/t for 2.2 million ounces.

The increase stemmed from the maiden resource at the Deacon Lode of 410,000 ounces at 12.3 g/t.

The Deacon Resource covers the central 900 metres of the recently extended 2 kilometres mineralised strike with numerous high-grade intersections still outside the resource awaiting closer-spaced drilling

Infill drilling completed

Bellevue completed the first phase of an infill drilling program ahead of schedule and on budget, putting Bellevue on track for a maiden indicated resource in June.

The infill drilling returned a host of high-grade intersections and supports the existing inferred resource model.

World’s largest resources fund emerges with 10% stake

Bellevue raised $26.5 million from a share placement during the quarter which saw the world’s largest resources fund, Blackrock, emerge with a 10% stake in the company.

The company is well funded with $37.8 million in cash as at March 31, 2020.

Project development

  • Strong progress has been made with dewatering of the historic Bellevue underground; this process is on track and within budget.
  • Dewatering of the Bellevue underground mine will deliver significant benefits, including:
    • Access to +28,000m of existing underground mine development;
    • Significantly lower costs for drilling M&I category resources;
    • Lower cost and more rapid drilling of Deacon and Mavis Lode discoveries;
    • Access for drilling resource extensions to the south and across the project; and
    • Development ready for future mining options.
  • Desktop studies highlighted the potential for multiple starter open pits which could generate early cashflow based on shallow, high-grade mineralisation.

Exercise of options by managing director

Managing director Steve Parsons exercised 20 million Bellevue options at a total cost of $775,000.

This includes 15 million options with an exercise price of 4 cents and 5 million options with an exercise price of 3.5 cents.

As a result, Parsons now holds 30 million Bellevue shares, making him a top-ten shareholder in the company.

Parsons said he has grown his shareholding to ensure he participated fully in the company’s future growth on the back of the Bellevue Gold Project.

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