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Bellevue builds WA gold project production profile


Bellevue Gold’s stage two feasibility at its namesake project in Western Australia has positioned the site to become one of the world’s top operations in grade, production and financial performance.

The company has increased its forecast mine production by 25 per cent to 200,000 ounces per year at an all-in sustaining cost (AISC) of $922 per ounce for the first five years.

Bellevue expects to become one of the world’s largest miners due to its Tier 1 location, reserve grade of more than five grams per tonne and mine production of 180,000 ounces per year, with only seven other assets globally meeting the same criteria.

The $267 million project will be funded by a $200 million loan from Macquarie Bank, a $106 million underwritten placement at $0.85/share, and a $25 million share purchase plan.

Its pre-production capital requirement is $252 million, $3 million less than revealed in its stage one feasibility study.

“There is one key point of differentiation between this exclusive group of which Bellevue is now a member and other rankings in the industry,” Bellevue managing director Steve Parsons said.

“That point is superior financial performance. Only seven other assets in the world boast a grade of more than 5 grams per tonne and annual production of (more than) 180,000 ounces in a tier-one location.

“This study shows Bellevue has Reserves of 1 million ounces at 6.1 grams per tonne. That underpins annual production of 200,000 ounces at an AISC of just $1014 per ounce, which in turn generates pre-tax cashflow of $270 million a year.”

The company is anticipating further potential to grow the Bellevue gold project’s mine life and production rate.

Bellevue’s stage two feasibility study increased the project’s life-of-mine resources to 8.1 million tonnes at 6 grams per tonne for 1.56 million ounces, and reserves to 5.3 million tonnes at 6.1 grams per tonne for 1.04 million ounces.

It is also expected to be the lowest carbon emitter per ounce compared to other Australian gold projects.

“Only 50 per cent of the 3.0-million-ounce resource sits within the mine plan,” Parsons said. “And since we completed the current resource estimate in July, we have announced a number of strong drilling results from outside this inventory.”

“These results demonstrate the potential for further increases in the annual production rate and mine life.

“With this in mind, we have designed the processing plant so that it can be expanded quickly and in a cost-effective manner.”

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