Bellevue Gold believes drilling results at its namesake gold project in Western Australia will support an upscale of production and increase project economics for minimal extra cost.
According to a company statement, the results identified significant mineralisation extensions at the project’s Deacon North and Marceline lodes, which are expected to add more ounces to the mineral resource at a low cost.
“The updated feasibility study is considering the option of expanding the production plant capacity by 33 per cent from 0.75Mtpa (million tonnes per annum) to 1.0Mtpa at start-up,” the company stated.
“Given the potential impact of the latest results on the resource, the cut-off date for inclusion of fresh drilling data in the upcoming stage two feasibility study has been extended with the study now expected to be released in the September quarter, 2021.”
Due to the exploration success and ongoing targets, the delivery timeframe for the upgraded study has been extended to the September quarter to allow the completion of drilling and engineering studies.
Bellevue managing director Steve Parsons said the drilling results continued to demonstrate the strength of the company’s investment proposition on every level.
“The drilling results provide further evidence of the significant scope to grow the total inventory and upgrade more of the inferred resources to the Indicated category while also demonstrating the excellent continuity of the mineralisation,” he said.
“These factors are all entirely consistent with the strategic objective of our stage two feasibility study, which is to increase production and mine life for a minimal increase in capital cost.
“Given the strength of these latest results and the fact that we incorporated significant scope for growth in the original costings, we are looking forward to completing the stage two feasibility study.”
Two surface and two underground diamond rigs are currently targeting further resource growth and conversion from the Deacon corridor.
The Bellevue gold project is 400 kilometres northwest of Kalgoorlie in Western Australia and sits within a high-grade gold and nickel district on the Wiluna-Norseman gold belt.
Bellevue is within 100 kilometres of numerous producing gold mines and in close proximity to world-class nickel mines.