Bellevue Gold Ltd (ASX:BGL) is comfortably on track for the first gold pour from its namesake project in Western Australia in the second half of next year as it mobilises new equipment to accelerate development.
The company is aiming to become Australia’s next high-grade gold producer and will ramp up ore drives at the start of the year to further improve underground development rates.
To that end, a third jumbo rig has been mobilised by contractor Develop Global Ltd to begin work early next month to provide additional access in the Marceline area.
A third jumbo rig arrived on site for commissioning on December 19.
Simultaneously, an underground diamond drill rig has been secured and will be mobilised in late January to conduct step-out exploration and resource definition drilling to increase the project’s reserve base.
The company has reported more updates:
- Site works at the processing plant are progressing well, with key infrastructure bulk earthworks and civils complete, including ball mill, crushers and thickeners.
- More than 1,100 square metres of structural concrete has been poured over a five-week period, which is more than half of the concrete required for the project.
- Tank construction has commenced and is progressing ahead of schedule, with tank floor and strake assembly and welding ongoing.
- Long lead items have continued to arrive into Perth and on-site, along with structural steel, grid mesh and platework.
Thickener trial construction at factory.
Strong progress
“We are in a strong position with the project running comfortably on time and on budget,” Bellevue managing director Steve Parsons said.
“The strong progress made in recent months, combined with the proceeds of the raising, has enabled us to continue pushing ahead at a rapid pace, further de-risking the project from both a production and timetable perspective.”
Bellevue completed the first drawdown of $35 million from a project loan facility with Macquarie Bank Ltd on December 21, proceeds of which will be used to meet budgeted expenditure.
The project remains fully funded with proforma cash at bank of $142 million as at November 30 and total liquidity of $307 million.
Overview of Bellevue's 3.1-million-ounce mineral resource estimate showing the current development for drill platforms in red.
The company is also continuing discussions with Energy Developments Pty Ltd concerning the purchase of power, part of its strategy for the project to be powered by an average of 80% renewable energy each year.
It expects the power purchase agreement to be signed by February 28 next year.
To view the project update slideshow in 3D, click here.
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