Bellevue Gold Ltd (ASX:BGL) (OTCMKTS:BELGF) keeps ticking important boxes as it prepares for an expanded feasibility study on the back of its latest achievement – an increase in resources to 3 million ounces at 9.9 g/t.
Strong growth in the mining inventory, which is up 25% since the stage-1 feasibility study in February, endorses Bellevue’s proposal to increase the production rate via expanding throughput by 33% to 1 million tonnes per annum for minimal capital cost.
The company’s indicated resource of 1.4 million ounces at 11 g/t is also up from 1 million ounces at the time of the study.
Back in August 2018, a maiden resource of 500,000 ounces was announced – since then, it has continued to grow at a compound annual growth rate of 84%.
“Outstanding progress”
Bellevue Gold managing director Steve Parsons said the project was making outstanding progress on every front.
“We are advancing, growing and de-risking the project at the same time.
“This substantial resource increase means we have ticked an important box in our strategy to grow the forecast production rate by expanding mill throughput to 1 million tonnes per annum.”
Growth rate of the Bellevue Gold Project.
This increased inventory forms the basis of the stage-2 feasibility study planned for release later this quarter and which is already well-advanced.
This new study will consider the option of increasing the production plant capacity from 750,000 tonnes to 1 million tonnes per annum. This is expected to incur minimal additional capital expenditure but with a material impact on the project’s economics.
The increased resources and work on the expanded feasibility study come as Bellevue prepares to compile a shortlist of the project debt funding proposals it has received from several lenders.
In an interview with Proactive, Bellevue Gold’s head of corporate development Luke Gleeson said at the time: “It’s been a fantastic day here at Bellevue.
“We’re enacting on our strategy here, we’re really excited.”
The gold stock also received a vote of confidence from substantial holder Black Rock Inc, after increasing its stake in the company to 14.28%, which Gleeson said was a “fantastic outcome”.
Resource upgrade
Bellevue Gold Project’s resource has been updated to include drilling completed between the cut-off date for the feasibility study in November 2020 and mid-June 2021.
The revised estimate reflects the upgraded Marceline/Deacon North and Deacon Lodes which have been the subject of extensive surface and underground diamond drilling programs during the first half of 2021.
Significantly, the combined areas of Marceline and Deacon North now total 800,000 ounces at 8.8 g/t including 400,000 ounces at 9.9 g/t in the indicated resource category.
Refurbishment continues
Bellevue’s preliminary engineering studies indicate the area will be accessed by a new northern decline which will allow mining to progress simultaneously from both ends of the Deacon lodes over 2.2 kilometres of strike.
In addition, the company has started the development access to the Marceline Area with a second heading being developed to the north to provide access to the Marceline and Armand area.
More than 120 metres of decline development has been as the southern decline refurbishment continues.
Notably, more than 2,300 metres of underground development has been completed to a vertical depth of 200 metres below the surface.
With the resource upgrade to Marceline and Deacon North, the Deacon structure now hosts 1.28 million ounces at 10.0 g/t including 690,000 ounces at 11.6 g/t of indicated resources
Further drilling in progress
Bellevue is continuing drilling along the Deacon structure from the surface and underground targeting further resource growth and reserve conversion.
Since the cut-off for the stage 1 feasibility study in November 2020, the company has continued to grow the resource at about 75,000 ounces per month.
Currently, drilling is ongoing with five surface diamond rigs continuing with an additional two underground rigs operating with another underground rig scheduled to arrive on site later this year.