Bellevue Gold Ltd (ASX:BGL) continues to make headway on its dual track exploration and production strategy, which is centred on the namesake Bellevue Gold Project in WA.
Over the December quarter, the gold explorer and project developer hit several key milestones, including establishing a $200 million loan facility with Macquarie Bank Ltd, ensuring Bellevue is fully funded to production.
The company also closed a heavily oversubscribed share purchase plan, which raised $36.6 million, and appointed a new CEO and general manager.
Bellevue’s cash and cash equivalents totalled $173.4 million as at December 31, 2021.
“Continuing to deliver on two key planks”
Speaking to the December period, Bellevue managing director Steve Parsons said the project had been significantly advanced and de-risked during the quarter.
“It was a highly successful quarter which saw us deliver results in line with our strategy on every front.
“The completion of the debt facility means the project is fully-funded.
“Development is on schedule and budget and the grade control model reconciles with the resource estimate.
“Drilling is ongoing with the aim of growing the inventory and upgrading it, both of which will create further value for shareholders, and underground mine development is proceeding well.
“It’s been fantastic to see two former Northern Star senior executives in Darren as CEO and Bill as general manager join the team, it’s another massive tick for the project.
“I am confident that by continuing to deliver on the two key planks of our strategy, we will achieve our goal of becoming an approximate 200,000-ounce a year producer with a long mine life and strong growth prospects.”
Site activities
Thanks to work in the December quarter, Bellevue remains on track to deliver first gold mid-next year.
Development works continue to focus on the underground access and establishment of the mine infrastructure ahead of surface infrastructure works.
Underground advance continues to progress well, with a total underground development advance of 3,797 metres completed to date.
Total development advance was down slightly due to increased turnouts required for ventilation, electrical and pumping infrastructure.
Planned development activities for the March quarter of 2022 include camp construction and progressing the major development contracts for underground mining, power and processing infrastructure.
Bellevue was further de-risked with high-grade drill results from the infill program at the Tribune target, which intersected:
- 10 metres at 15.4 g/t gold from 115 metres;
- 2.4 metres at 46.2 g/t from 146.1 metres;
- 2.2 metres at 24.8 g/t from 73 metres;
- 4.7 metres at 10 g/t from 81.2 metres;
- 6 metres at 5.5 g/t from 72 metres;
- 4 metres at 7.9 g/t from 29 metres; and
- 6 metres at 4.9 g/t gold from 9 metres.
What’s more, a review of the Tribune grade control model shows it reconciles strongly with the Bellevue resource estimate.
Measured against both indicated and inferred ounces, the grade control model demonstrates:
- An increase of 4% in gold grade; and
- An increase of 2% of total contained metal.
Corporate activities
In December 2021, Bellevue executed its project loan facility with Macquarie, providing access to a $200 million funding runway.
In November, the company also completed a share purchase plan, with subscriptions totalling roughly $36.6 million — well ahead of the original $25 million target.
In light of the overwhelming demand, Bellevue used its discretion under the terms of the SPP to accept all valid applications in full, meaning there was no scale-back.
Under the SPP, investors could apply for a maximum of $30,000 worth of shares at $0.85 per share.
All the Bellevue directors, and members of the executive management team, took up their maximum SPP entitlement of $30,000 worth of shares.
All up, 43,102,455 new shares were issued on November 18, 2021.
During the quarter, Bellevue also appointed two highly experienced mining executives, Darren Stralow and Bill Stirling, as CEO and general manager, respectively.
Stralow and Stirling, both of whom are mining engineers, have held distinguished careers with fellow ASX lister Northern Star Resources Ltd (ASX:NST), among other leading mining and contracting groups.
Stralow was most recently chief development officer at Northern Star. Prior to this, he held several other senior positions at Northern Star and led the integration of the company’s Australian business units.
As general manager of operations, he oversaw several operational expansions and recreated safety systems to drive industry-leading safety performance.
Stralow also has strong ESG credentials, as demonstrated by the roles he played in overseeing multiple power upgrade projects which improved efficiency, reduced emissions and investigated renewable options at multiple Northern Star operations.
Stirling’s roles at Northern Star included general manager of Jundee, general manager of the Kalgoorlie operations and general manager of Bronzewing.
He was also responsible for significant operational expansion projects at Jundee, contract negotiations, capital projects, team development and systems implementation.
With the restructuring of the project development team, Craig Jones’ role as chief operations officer has come to an end, though he will remain engaged in a consulting capacity to support the transition.
In December 2021, the company announced that Michael Naylor will transition from the roles of executive director and chief financial officer to non-executive director.
As a result, Bellevue has initiated an executive search for a new CFO. In the meantime, Naylor will remain in his current roles until this appointment is made and the transition process is completed, at which point he will become a non-executive Director.