Bellevue Gold Ltd (ASX:BGL) is ramping up activity at its namesake project, with camp construction underway and mine development progressing to plan.
The company is also buoyed by recent drilling it has conducted both at the resource and in the surrounding areas.
The latest drilling at the project has delivered results that promise to expand the resource, pointing to growth in the one-million-ounce reserve.
Watch: Bellevue Gold gears up for a busy year with good drilling results and new personnel driving growth
Expanding resource
High-grade drilling intersections from outside the resource include:
➢ 5.5 metres at 37.19 g/t gold from 205.7 metres at Bellevue North;
➢ 3 metres at 13.0 g/t gold from 189.5 metres at Bellevue South;
➢ 1.2 metres at 53.5 g/t gold from 564.1 metres at Deacon; and
➢ 2.4 metres at 22.9 g/t gold from 600.2 metres at Deacon.
High grade intersections were also uncovered within the inferred resource, including 2.2 metres at 22.6 g/t gold from 565 metres, 1.5 metres at 23.4 g/t gold from 132.6 metres and 2.4 metres at 12.4 g/t gold from 554.6 metres.
Bellevue’s resource and reserve updates are on track for March.
Building the mine
Also on the company’s checklist is site development, which proceeds apace with contractor negotiations underway and 4,060 metres of underground development wrapped up. Stage 1 works are also nearing completion.
The company is advancing its negotiations with mining, power and plant EPC contractors, and expects to land on a preferred underground mining tender in the next month. The award of process plant EPC contract and ordering of long-lead items are also expected in March.
Mine camp construction has commenced with the first 80 rooms landed and a dry mess operational in the coming weeks.
The company expects to complete the Viago drill drive this week, which will allow grade control drilling from underground, a move that will make way for further cost savings and efficiencies.
The next stage of development involves the three individual mining areas of Viago/Deacon Main, Marceline/ Deacon North and Armand, where activities are centred on allowing for more underground drilling platforms.
Economics stack up
The Bellevue project is forecast to produce an average of 200,000 ounces per annum for the first five years and to average 183,000 ounces per annum over its eight-year life.
Bellevue continues its optimisation work with a view to improving the overall economics of the project.
The project is fully funded with cash and equivalents of $173.4 million as at December 31, and completion of a $200 million undrawn loan facility with Macquarie Bank completed in December.