ASX 200

Bellevue Gold continues resurgence with strong February production numbers

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By Colin Hay - 
Bellevue Gold BGL ASX February 2024 production update

Bellevue Gold’s (ASX: BGL) namesake mine in Western Australia was thought to have been dead years ago but is now on track to regain its title as one of the nation’s highest grade gold producers.

Thanks to perseverance and geological expertise, the mine produced its first modern gold bar in October 2023 and gold production since then has continued to rise, underpinned by underground stoping ore and higher grades.

Bellevue managing director Darren Stralow said that production ramp-up continues to improve month-on-month at the WA mine.

“It is very pleasing to see milling nameplate throughput achieved for a third straight month as we progress towards steady state operations.”

“This resulted in production of 13,364 ounces in the month of February 2024 and ensures we are well on track to meet our guidance for the six months to 30 June 2024 and generate free cash flow.”

Guidance on target

Bellevue Gold’s production in February 2024 totalled 13,364oz at an average head grade of 5.2 grams per tonne gold – a 28% increase on the previous month.

At the same time as production is rising, Bellevue Gold is also increasing underground development and stoping rates.

Bellevue Gold said production levels are on track to meet the January 2024 production guidance of between 75,000-85,000oz for the six months to 30 June 2024.

Mine-to-mill reconciliation remains on target as per the mineral resource estimate, with stope performance including dilution and overbreak performing to expectations.

Mr Stralow said the focus remains on increasing the stoping rate to steady-state, which is expected to deliver further increases in grade to the mill as the underground mining rate matches the plant throughput.

The company expects to receive the benefits from the establishment of multiple mining areas and development levels for underground mining production during the remainder of FY24.

All five underground mining areas are now actively in ore development or stoping with the first stoping ore delivered from Deacon Main during the month.

Mill performance has continued to achieve or exceed the nameplate 1 million tonnes per annum processing rate for the third consecutive month.

2017 drilling success

The Bellevue Gold team struck it rich in 2017, when drilling to try and resurrect what was once Australia’s highest-grade gold mine yielded seven metres of 27g/t gold from surface in the seventh hole in its program.

That discovery completely changed the industry’s opinion that the historic mine was tapped out as previous drilling had failed to encounter the high-grade gold the area was famous for.

Earliest production from the Bellevue mine licences dates back to the early 1900’s.

The first modern commercial underground extraction at the project commenced in 1986, producing around 800,000oz at 11g/t predominantly from an underground gold mine operated by Plutonic.

The mine was shut down in 1997 when the gold price had collapsed and the operator couldn’t find the ore body.