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Bellevue: The future of Australia’s gold industry


Bellevue Gold is poised to become an Australian gold producer in 2023 after further consolidating the viability of its Bellevue gold project in Western Australia.

As the emerging gold miner continues to de-risk Bellevue, it has added approximately 300,000 ounces of gold – or 29 per cent – to the project’s probable reserves, which now boasts 1.34 million ounces of contained gold. This underpins a 10-year mine life.

More than 90 per cent of the pre-production capital is now committed through existing contracts or tenders, with Develop Global appointed as the mining contractor and GR Engineering Services contracted to complete early works.

Bellevue said the project’s pre-production capital remains fully funded, which is backed by $351 million of liquidity and an undrawn $200 million debt facility.

The company is set to generate an average pre-tax free cash flow of $231 million per annum across its first 10 years of operation at a gold price of $2500 per ounce. The pre-tax internal rate of return is forecasted to be 68 per cent.

Bellevue is set to boast some of the lowest operating costs among ASX-listed gold producers, with the all-in sustaining cost (AISC) forecast to be in the range of $1000–$1100 per ounce over the first five years.

Bellevue managing director Steve Parsons said the company was rapidly executing the project in line with financial and technical analysis completed by both Bellevue and external consultants.

“By locking in 90 per cent of our pre-production costs and underpinning our 10-year mine life with 1.34 million ounces in reserves, we have significantly de-risked the project and put us on a path to realising the immense value of this exceptional asset,” he said.

First development ore from the northern decline is expected in the September 2022 quarter, with only 70m of further development required before the first high-grade ore is encountered at the Armand lode.

Set to commence production in the second half of 2023, preliminary guidance for the first 12 months of commercial production is between 180,000–200,000 ounces.

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