Bellevue Gold Ltd (ASX:BGL) has continued the trend of steady growth in the resource of the flagship Bellevue Gold Project in Western Australia, increasing the indicated portion of the resource to 4.6 million tonnes at 11.2 g/t gold for 1.7 million ounces.
Now representing more than half the greater mineral resource of 9.8 million tonnes at 9.9 g/t for 3.1 million ounces, Bellevue has achieved 43% annual growth in its indicated resource since July 2020.
Drilling from underground has generated productivity and cost advantages that resulted in a particularly low conversion cost of less than $25 per indicated ounce.
This latest update was produced from 42,250 metres of underground drilling completed since the stage two feasibility study was released in September last year, with two underground drill rigs in operation with the aim of upgrading more of the 3.1-million-ounce resource.
Converted resources extend life of mine
Bellevue Gold managing director Steve Parsons said the increase was ‘highly significant’ because the increased indicated resource would underpin further growth in the project reserve and life of mine (LOM) inventory in the upcoming optimisation study.
“Organic growth like this is one of the most effective ways to create value for shareholders,” Parsons said.
“We are adding indicated ounces at a cost of less than A$25 per ounce at one of Australia’s highest-grade undeveloped gold mines.
“This increased indicated resource is expected to lead to increased reserves and a longer mine life compared with the already-impressive metrics in the FS2 study.
“Work on the optimised reserve and mine life is well advanced and we expect to complete these studies within weeks.”
Shares higher
Shares were as much as 5.38% higher intraday to A$0.985 while the company's market cap is approximately A$959.19 million.
Bellevue is focused on the continued de-risking of the project through further infill drilling and grade control, while also prioritising mine plan optimisation, savings initiatives and securing key project contracts.
The company’s mining contractor, Develop, has begun mobilising equipment and key support staff with work set to start on site this month.