Bellevue Gold Ltd (ASX:BGL) is studying options to toll treat the anticipated ore stockpile at its namesake play in Western Australia ahead of commissioning the processing plant.
The company has accumulated a stockpile that it forecasts will exceed 200,000 tonnes at 5 g/t gold before the processing plant is commissioned, de-risking early production.
BGL is in a position to review its cashflow options because of strong progress it has made on underground development, which is comfortably ahead of schedule at 6.7 kilometres, and an added tailwind in the form of delivery of a second jumbo in October.
Mining this month
Ore driving is scheduled to begin in the Upper Armand areas this month, which will in turn increase development rates along with the number of available headings.
Bellevue is opening up five independent work areas sequentially and this is on track, with Armand reached in late July and Bellevue South scheduled for early 2023.
Managing director Steve Parsons said: “It is increasingly clear that we may have an opportunity to accelerate the start of cashflow due to the significant ore stockpile we expect to accumulate before plant commissioning gets underway.
“We are now studying options for toll treating in the region and considering the benefits this scenario could deliver for our cash position.
Accelerating mine development
“We may also have the option of accelerating mine development given the outstanding progress made to date. However, the cost of this strategy would need to be more than offset by the immediate cashflow benefits.”
The forecast stockpile will partly come from mining the planned Vanguard open pit. This is set to kick off in the first quarter of next year and will consist of roughly 100,000 tonnes at >3.5 g/t gold.
The mined Vanguard pit will then be transformed into the tailings dam for plant commissioning. Just like the underground development, plant construction is advancing quickly, putting Bellevue on track for first production in the second half of next year.
Well-funded and de-risked
The project remains well funded with $277.3 million of available liquidity as of September 30 and plant construction has been de-risked now that bulk earthworks, started in September, are complete.
Critical path concrete pours are also complete, including the ball mill raft, CIL ring beams and crusher pocket. Critical path and long-lead items for the processing plant are also under manufacture, with key items starting to arrive in Perth.
"We are reaping the benefits of the decisions we made some time ago to order critical long-lead items early,” Parsons said. “This has helped us avoid supply chain disruptions and advance the de-risking process.
“We have been very progressive with our approach to the concept of sustainability and the focus on our people, culture and designing a project where people want to come and work.
“In conjunction with our mining contractor Develop Global Limited Ltd, we have also been very successful in recruiting and establishing a first-rate team. We have no doubt that this is due in part to the strength of the project and the strong emphasis on ESG.”
The initial mine life has been designed to avoid the edges of the orebodies and focus on the sub-vertical domains which make up around 90% of the current ore reserve.