Bellevue Gold [ASX:BGL] share prices are up by 2.56% this morning, trading at $1.50 per share, after announcing ‘exceptionally high-grade’ infill drilling results from its Bellevue Gold Project in WA.
The Project lies 430 kilometres north of Kalgoorlie in WA and has caught the attention of investors for its high grades and high-margin growth potential.
For now, it remains speculative as the site is still under construction, with the first gold production targeted for the December quarter of this year.
This hasn’t slowed investors, with shares of the company up by 80.5% in the past year, outperforming the sector by 65%.
Let’s look at some of the results and see what this could mean for the share price and BGL.
Source: TradingView
Bellevue infill drill results
This morning Bellevue released infill drilling results for its flagship Bellevue Gold Project which is part of the Agnew/Wiluna Greenstone Belt in WA.
The infill drilling results are well above the 6 g/t gold Reserve grade and bode well for production at the project. Some of the highlights include:
- 18.4 metres at 52.9 g/t gold
- 11.7 metres at 47.9 g/t gold
- 10.2 metres at 61.1 g/t gold
- 8.1 metres at 32.9 g/t gold
- 10.4 metres at 36.9 g/t gold
In addition to the high-grade infill drilling, Bellevue has also made progress on underground mining. The first two development headings have been completed at the Bellevue South work area, and mining of development ore is underway.
Construction activities at the Bellevue Gold Project have remained on track with all major components of the plant installed as planned.
In early June, BGL received its final permit for its tailings facility and water storage facility from the Department of Water and Environmental Regulation.
The permit came after the Department fined the company $41,000 for environmental damage caused in 2020 when highly concentrated salt water escaped through a vent shaft — resulting in 46 hectares of damage to surrounding vegetation.
This has created tensions with traditional landowners, who note that the damage can be seen by satellite.
The project remains set to deliver production in the December 2023 quarter in line with its scheduled timeline.
Bellevue South, along with other work areas such as Armand, Marceline, and Deacon, will contribute significantly to the production schedule for FY2024.
As mining operations continue to ramp up, these areas are expected to yield higher-grade development, further boosting production volumes.
Bellevue Managing Director, Darren Stralow said:
‘These results provide a valuable insight into what we can expect as mining ramps up. The grades are well above those in the Reserve estimation and demonstrate why we are very confident about meeting our key targets as we move into production.’
‘The project remains comfortably on time, with first production set for the coming quarter, and our focus is on meeting our targets and ramping up in line with our strategy’.
The Bellevue Gold Project has a Total Mineral Resource (including inferred) of 3.1 million ounces of gold at a grade of 9.9 g/t. The project is expected to produce an average of 200,000 ounces of gold per year over an initial mine life of more than 10 years.
Outlook for Bellevue
Bellevue Gold is gearing up for a promising future as today’s results underscore the potential of the Project as it continues to yield exceptionally high-grade mineralisation results.
The recent drilling campaign, conducted in preparation for the start of mining, has revealed impressive downhole intersects bode well for the project’s early production profile. It has also strengthened the company’s confidence in meeting key production targets.
The only question that remains is where gold prices will go from here.
The short-term bullish sentiment fueled by economic uncertainty and geopolitical tensions has fallen somewhat. As the Fitch ratings downgrade that has captured the news highlights, there is concern about the levels of debt the US is accruing.
This is bullish news for the Gold price long-term and should help BGLs profit margins in the future.
Source: Trading Economics
Overall, the latest drilling results and progress updates indicate a positive outlook for the Bellevue Gold Project.
The exceptionally high-grade mineralisation discovered during infill drilling reinforces the project’s potential and sets a strong foundation for success.
With operations proceeding as planned and the first production milestone just around the corner, Bellevue Gold Limited is well-positioned to capitalise on the richness of its ore deposits and deliver value to its stakeholders in the coming quarters.
If you’re also bullish about the prospects of gold, or concerned about central banks printing money, then owning your own gold is a great way to secure wealth.
How to buy and store gold in Australia
In a world where people are feeling more pressure in their finances than ever, this makes it even more important to find ways to build and protect your wealth.
How are you meant to do this with the high-interest rates, sky-high energy bills and general dismal high cost-of-living environment?
The thing is that everyone is feeling in the same boat right now.
It’s those emotions that are holding a lot of potential investors back from some real potential — and that’s often the best time to get into a market.
Fat Tail’s Brian Chu, editor of Gold Stock Pro and host of the Bullion & Bordeaux Hour, has tips for you.
Click here for Brian’s latest gold report.
Regards,
Fat Tail Commodities
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