Bellevue Gold Ltd (ASX:BGL) has started underground work at its namesake mine in Western Australia with mining contractor Develop Global Ltd (ASX:DVP) undertaking the construction, development and production activities at the underground mine.
The agreement is valued at ~A$400 million and covers a period of almost four years.
Develop was awarded the contract following a six-month competitive tender process, which included rigorous analysis by an independent third party at each stage.
The terms of the contract are in line with the total pre-production cost forecasts contained in Bellevue’s stage two feasibility study, announced on September 2, 2021.
“Our project is in extremely talented hands”
Bellevue managing director Steve Parsons said last month that Develop’s team of world-class underground mining specialists were perfectly suited to the Bellevue Project.
“Develop has built an exceptional team with extensive underground mining knowledge and experience in Western Australia gold operations. Applying their immense experience to the Bellevue mine further de-risks the project on both an operational and financial level.
“Develop has recruited a significant number of underground personnel and secured the latest equipment for use in underground construction and mining.
“The combination of the Develop team and the outstanding people we have at Bellevue means our project is in extremely talented hands.”
“Highly experienced underground mining specialists”
Develop managing director Bill Beament said: “We have established a world-class team of highly experienced underground mining specialists.
“Our team includes leading managers in their respective areas and an enviable group of underground mining and maintenance personnel, backed up by the latest mobile equipment.
“Our people, combined with the outstanding management team at Bellevue, will ensure we maximise the huge opportunity offered by the high-grade Bellevue orebody”