- Bellevue Gold (BGL) has released its stage one feasibility study for its self-titled gold project as well as additional drilling results
- The feasibility study assigned the Bellevue Gold Project a maiden probable ore reserve of 2.7 million tonnes at 8g/t gold for 690,000 ounces
- It also estimates an average annual production of 160,000 ounces of gold in the first five years, at an all in sustain cost (AISC) of $1079 per ounce
- Additionally, the study found the project would have a life of mine revenue of $2.5 billion and an internal rate of return of 58 per cent
- Meanwhile, drilling at the site in WA intersected significant mineralisation 700 metres north of the Bellevue mine with results of up to 1.1 metres at 25.5 g/t
- Drilling at the nearby Deacon lode also intersected significant mineralisation, including bonanza grades of 0.4 metres at 72 g/t gold from 467 metres
- Bellevue will use this latest drilling program as part of a resource update to be incorporated into the stage two feasibility study
- BGL shares have opened trading down 13.5 per cent at 83.5 cents each
Bellevue Gold (BGL) has released its stage one feasibility study for its self-titled gold project.
The gold miner has also received more drilling results back from the asset, which include bonanza grade intersections.
Stage one study
The stage one feasibility study assigned the Bellevue Gold Project a maiden probable ore reserve of 2.7 million tonnes at 8g/t gold for 690,000 ounces.
It also estimates an average annual production of 160,000 ounces of gold in the first five years, at an all in sustain cost (AISC) of $1079 per ounce.
Bellevue’s life of mine (LOM) mineral resources and ore reserves sit at 5.6 million tonnes at 6.4 g/t gold for 1.1 million ounces.
The company will use conventional mechanised underground mining methods at Bellevue and hopes to have the first gold pour done by the fourth quarter of 2022.
Financially, the study found the project would have a LOM revenue of $2.5 billion and an internal rate of return of 58 per cent.
Bellevue would also need a pre-production capital requirement of $255 million, excluding a $14 million contingency, but the payback period is relatively rapid, with payback to be achieved in 1.4 years or 1.7 years post-tax.
Commenting on the stage one feasibility study, BGL Managing Director Steve Parsons said he expects the project to be ranked amongst Australia’s top 25 gold mines.
“The independent experts have confirmed that Bellevue has an outstanding future underpinned by high-grade mineralisation and the need for nothing more than conventional mining and processing methods,” he said.
“This combination is expected to lead to low production costs, strong margins, abundant free cashflow of $190 million a year and stand-out rates of return,” he added.
Drilling results
Along with the feasibility study, Bellevue has announced drilling at the site in WA has intersected significant mineralisation 700 metres north of the Bellevue mine.
The mineralisation has been named the Lucknow discovery, with first-pass step-out drilling intersecting up to 1.1 metres at 25.5g/t gold.
Additionally, drilling at the nearby Deacon lode also intersected significant mineralisation, including bonanza grades of up to 72g/t gold.
The drilling was from 300 metres depth and best results include three metres at 14.4g/t gold from 435.6 metres and 0.4 metres at 72g/t gold from 467 metres.
The drilling at Deacon also found new mineralisation, which has been named Lucien discovery.
Finally, step-out drilling at the Armand Lodes continued to intersect multiple high-grade gold zones including two metres at 21.5g/t gold from 363.6 metres.
Bellevue will use this latest drilling program as part of a resource update to be incorporated in the stage two feasibility study, which is set to be released in the June quarter.
Following today’s news updates, BGL shares have opened trading down 13.5 per cent at 83.5 cents each at 10:57 am AEDT.