Bellevue Gold Ltd (ASX:BGL) has capped off a "pivotal" quarter, paving the way for an expanded feasibility study at its namesake gold project, situated 400 kilometres west of Kalgoorlie in Western Australia.
The highlight of the quarter was the growth recorded in Bellevue’s global resource, which increased to 3 million ounces at 9.9g/t gold — up 25% from the stage 1 feasibility study.
In addition, Bellevue's indicated resource is up 34% from the stage 1 feasibility study to 1.4 million ounces, an increase that will form the basis of a stage 2 feasibility study.
Promisingly, Bellevue’s stage 2 study, due in the September quarter, will consider increasing throughput capacity by 33% to 1 million tonnes per annum for minimal additional capital cost.
Mineral resource at Bellevue
“Pivotal quarter for the company”
Bellevue managing director Steve Parsons said: “it was a pivotal quarter for the company, with the increased resource to underpin the stage 2 feasibility study.
“The expanded resource has paved the way for the expanded feasibility study, which would enable us to increase production and financial returns for very little additional capital cost.
“The strength of the project was also highlighted by the overwhelming response we received to our call for indicative debt proposals.
“We are now looking forward to completing the stage 2 feasibility study.”
Exceptional grade control
The robust nature of the Bellevue Lode resource highlighted exceptional grade control results received from early grade control drilling.
The Company continues to invest in drilling to support resource growth, further Resource conversion and, importantly, grade control, well ahead of the mine schedule.
Up to six surface diamond rigs, two underground diamond rigs and an additional surface reverse circulation (RC) rig operated at the project during the quarter.
Achievements in the field
Bellevue has established a second underground diamond rig to deliver a substantial reduction in cost and allowing further exploration and infill drilling into the Deacon corridor.
The Marceline and Deacon North areas have grown the total resources at the Deacon structure to 1.3 million ounces at 10.0g/t gold with significant high-grade results including:
- 5.6 metres at 62.7 g/t gold;
- 12.5 metres at 18.8 g/t; and
- 2.7 metres at 113.2 g/t.
Lastly, Bellevue has completed over 11,380 metres of grade control drilling at the open pit areas of the project, with the majority of the results presently pending.
Resource growth since maiden inferred resource in 2018.
Operational updates
The Paris Decline has now progressed over 1,750 metres and the Armand Decline has advanced 120 metres, with the underground mining contractor continuing to improve operational processes and now achieving a further improved 274 metres per month on average in both fresh and rehabilitated development during the quarter.
The company continues to remain on track to complete the stage 1 works by the end of the year with ongoing progress continued with preparations being made for the extension of the underground high voltage system to be installed early in the September quarter in support of the advancing decline.
Dewatering activities also continued, using the surface installed bore pump, and benefitted from the historical ventilation rises at the project.
Final plans are being formulated for the ongoing dewatering strategy of the project to ensure water levels remain below operational levels.
Operational Physicals.
Indicative offers of debt
Bellevue maintains it is well-funded with $94.1 million in cash
Recently, in association with its debt advisors, Orimco Pty Ltd, the company received debt funding proposals from 12 leading domestic and offshore financial institutions, containing indicative offers of debt ranging between $170 million and $289 million for the construction of Bellevue’s project.
In addition, Bellevue is considering an option to expand the planned 750,000 tonnes per annum processing plant to 1 million tonnes per annum.
The company will devise a shortlist of preferred financiers and move to the second stage of the debt financing process pending the completion of the stage 2 feasibility study this quarter.
Further, Bellevue recently appointed general counsel and joint company secretary Amber Stanton.
- Ephrems Joseph