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Bellevue Gold’s (ASX:BGL) stage two feasibility study to benefit from Marceline discovery

Mining
ASX:BGL      MCAP $1.983B
16 March 2021 11:30 (AEST)
Bellevue Gold (ASX:BGL) - Managing Director, Steve Parsons

Source: Bellevue Gold

Bellevue Gold (BGL) has received more drilling results from the recent Marceline discovery which will support a maiden resource and stage two feasibility study.

The Marceline discovery was made at Bellevue’s namesake gold project in Western Australia.

The latest and best results from infill and step-out drilling include 4.8 metres at 20.1g/t gold, including 0.9 metres at 102.7g/t gold from 489.4 metres, 2.1 metres at 45.5g/t gold from 503.4 metres, 4.2 metres at 21g/t gold from 459 metres, and 1.2 metres at 45.1g/t gold from 479.4 metres.

These results have extended mineralisation at the newly-discovered lode to over a 500-metre strike length and it remains open in every direction.

Due to the significance and high-grade nature of Marceline, Bellevue believes it has the potential to positively contribute to the production profile and mine life estimates in the upcoming feasibility study.

Including the Marceline discovery in the second stage feasibility study will benefit from $10 million of pre-production capital and two kilometres of development, as this has already been incorporated in the stage one feasibility study which was completed last month.

“One of the main benefits being that $10 million of capital has already been costed in the stage one study and any additional ounces coming into the mine plan from the Marceline Lode are expected to benefit from a lower level of capital intensity,” Managing Director Steve Parsons said.

The initial study outlined a 750,000 tonnes per annum mining and processing scenario producing an average of 160,000 ounces annually in the first five years at an all-in sustaining cost of $1079 per ounce.

The stage one study also detailed a life-of-mine average of 151,000 ounces per annum over a 7.4-year mine life as well as a maiden probable ore reserve of 2.7 million tonnes at 8.0g/t gold for 690,000 ounces. However, Bellevue is aiming to increase this.

Infill and step-out drilling at the Marceline discovery is ongoing and an updated reserve and the stage two feasibility study are on track to be delivered in the June quarter.

Company shares are up 4.52 per cent and are trading at 81 cents at 10:55 am AEDT.

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