Bellevue Gold Ltd (ASX:BGL)'s latest drilling results at the Bellevue Gold Project in Western Australia demonstate there is strong potential for growthin the resource and mine life beyond the imminent stage-2 feasibility study, set for release in the coming weeks.
Notably, drilling has delivered a host of strong results, which are expected to be reflected in a resource/reserve update in early 2022 after publication of the feasibility study and are from high-grade intersections of infill and extension drilling that sit outside the company’s current resource/reserve model.
Significant results from the Armand Lode include:
- 7.5 metres at 53.3g/t gold from 348.2 metres including 4.1 metres at 91.6g/t from 348.2 metres;
- 2.0 metres at 21.5g/t from 363.6 metres;
- 2.5 metres at 20.2g/t from 458.2 metres; and
- 4.5 metres at 3.8g/t gold from 473.5 metres.
Drilling is now focussed on the delivery of further indicated resource conversion and growth around the Armand and Deacon Lodes beyond the pending stage-2 feasibility study.
“Aim to create further value for shareholders”
Bellevue managing director Steve Parsons said: “These results show that Bellevue is still very much a come-growth stock.
“The upcoming stage-2 feasibility study is designed to demonstrate that Bellevue can generate further increases in forecast production and cash flow.
“We will aim to achieve this by increasing the processing capacity by 33 per cent to 1Mtpa and including the recently released 1.4 million ounces at 11.0 g/t gold indicated resource.
“At the same time, we aim to create further value for shareholders by growing the total Resource and mine life.
“These latest results, which are expected to form part of a Resource update to be published after the stage-2 feasibility study, show that this strategy is well on track.”
Bellevue continues to invest significantly in future reserve growth
Bellevue recently released a global resource upgrade to 3.0 million ounces at 9.9g/t gold, including 1.4 million ounces at 11.0g/t gold of indicated resources, which is expected to form the basis of the stage-2 feasibility study scheduled for release in the coming weeks.
This stage-2 feasibility study will consider a 33% increase in the proposed processing rate to 1 million tonnes per annum, which is expected to be achieved for a minimal increase in the capital cost.
Drilling is continuing at Deacon North and Marceline with two underground rigs currently operating, with a third rig due to be added in the third quarter of 2021 to convert the 560,000 ounces at 8.3g/t gold of inferred resource along Deacon and target further growth.
The company continues to invest significantly in future reserve growth ahead of production as a central pillar of the exploration strategy and looks forward to updating the market on the results of the feasibility study.
Excellent grade and continuity at Tribune
The drilling continues to highlight the excellent grade and continuity of the mineralisation with the results confirming the interpreted shallow southerly plunge to the high-grade ore shoots across the Tribune Structure.
Substantial grade control drilling, another central pillar of the exploration program, is expected to be completed over the project development period predominantly from underground platforms, but also surface for shallow Resource areas.
Significant results from the grade control drilling at Tribune include:
- 8m at 21.4g/t gold from 122 metres;
- 2m at 48.5g/t gold from 104 metres; and
- 2m at 37.1g/t gold from 51 metres.