Bellevue Gold Ltd (ASX:BGL) continues to pass milestones on the road to produce first gold from the processing plant at Bellevue project in Western Australia next quarter with stoping underway while the first gold bar has been poured in the lead-up toll treating campaign.
The processing and commissioning team has arrived on site and is working with the construction team to facilitate completion and start-up of the processing plant.
Managing director and CEO Darren Stralow said: “The project ramp-up is proceeding to plan as we continue to meet key project milestones such as first stoping and the start of commissioning.”
Processing plant construction as at August 13, 2023.
Additional debt facility limit
In another pre-production boost for the company, an additional $25 million debt facility limit has been obtained from Macquarie Bank Limited.
This is separate to the existing $200 million project loan facility with Macquarie and will provide BGL with a source of contingent funds and further balance sheet flexibility.
There is no requirement or current intention to utilise the facility and it will expire if unused on March 31, 2024, or earlier if otherwise voluntarily cancelled.
“Ongoing support”
"We are also pleased to have the ongoing support from our bankers Macquarie, which reflects the strength of the project,” Stralow said.
"While we don’t currently intend to draw down the facility, it provides us with a further liquidity buffer and balance sheet flexibility.”
As of July 31, 2023, Bellevue had total proforma liquidity of A$133 million (including cash of $38 million, undrawn PLF of $70 million and facility of $25 million).
This excludes any cashflow from the toll treatment campaign and anticipated novation and/or sale of all or a portion of certain power-related infrastructure paid for directly by Bellevue up to June 2023 (up to $10 million, of which ~$7 million has now been novated/sold).
First stoping ore
Underground stoping is underway at the Bellevue Gold Project with the first stope fired last week in the Upper Armand mining area.
This panel is now complete, with the stope pulling to the full height of 24 metres and the planned minimum width.
Development ore drives have now accessed three of the four production areas - Armand, Marcelline and Bellevue South - with stoping to occur in each of these in the pre-production phase to provide stockpiled tonnes ready for processing plant commissioning.
A fourth production area – Deacon - will be accessed by development this quarter with grade control drilling underway.
Bellevue ROM establishment complete, ore is being stockpiled ahead of plant commissioning.
Processing plant progress
At the mine site, processing plant construction is progressing ahead of schedule with all structural work, CIL tanks and painting and mechanical installations complete.
Mill installation is 90% complete and there is only alignment work to be undertaken.
The remaining critical electrical and piping installation component is progressing well with both 50% complete.
All electrical cable pulls are complete and both construction teams are fully resourced through to the end of the project.
Crushing circuit construction is complete and commissioning has started with energisation and bump testing of equipment underway.
Commissioning personnel from the EPC contractor GR Engineering Services Limited (GRES) and in-house Bellevue personnel, have mobilised with the commissioning plan finalised and the commissioning team in regular meetings and workshops.
A processing team has been recruited and all personnel are on site or progressing through the onboarding process. The team is on track to achieve greater than 35% female participation, with a mix of greenfields and brownfields project experience in commissioning of gold processing plants.
This team will integrate with GRES through the remainder of the construction period, through commissioning and into production.
Bellevue crushed ore stockpile at Gwalia, ore running up feed belt.
First toll treatment gold bar
BGL has hauled the first campaign of toll-treated material from the mine and processing is underway at the Gwalia gold mine owned by Genesis. This first campaign is due to be completed this week and has resulted in the first gold poured for the company on August 15.
There will be subsequent campaigns run during September and October which will enable the company to generate early cash flow ahead of the start of processing at the gold mine plant during the December 2023 quarter.