Bellevue Gold Ltd (ASX:BGL) has contracted MLG Oz Ltd to transport ore from its namesake gold operations in Western Australia to Genesis Minerals Ltd’s Gwalia processing facility 170 kilometres away.
The contract is set to begin this month and will run for about three months, generating an estimated A$4 million in revenue for MLG.
The Bellevue Gold Project is 40 kilometres to the northwest of Leinster in the Goldfields region of Western Australia and sits in a major gold and nickel-producing district with mines such as Northern Star's Jundee and Bronzewing in close proximity.
Toll treating agreement
The Perth-based exploration company last week inked a toll-treating agreement with Genesis to process about 100,000 tonnes of ore – predominantly from the Vanguard open pit - with an average grade of 3 grams per tonne gold.
Ore from the Bellevue operation will be transported via the Goldfields Highway to Gwalia, which will enable Bellevue to generate early cash flow in the September quarter before processing commences at the plant later in the year.
Green gold
The Bellevue gold operation is set to become Australia’s first net-zero gold mine with the building of an 88-megawatt wind and solar plant near the mine.
The project has a JORC-compliant mineral resource of 9.8 million tonnes at 9.9 g/t gold for 3.1 million ounces, including a probable ore reserve of 6.8 million tonnes at 6.1 g/t gold for 1.34 million ounces, one of the highest grade gold discoveries in the world.
It is also the fastest-growing gold project in Australia, on-track for production in the second half of this year.