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Bellevue Gold is Top Explorer Pick Winner for 2019 by Macquarie Research

Macquarie continues to prefer tier one jurisdictions for gold development stories, but says "high-margin special situations" can emerge in places like West Africa.

Bellevue Gold Project in Western Australia
Bellevue Gold Project in Western Australia

Bellevue Gold Ltd (ASX:BGL) has been picked as the only high conviction Top Explorer Pick Winner for 2019 by Macquarie Research.

The company accomplished this after having successfully delineated a high-grade inferred resource of 1 million ounces of gold at 12.4 g/t gold last year at its Bellevue Gold Project in Western Australia.

READ: Bellevue Gold boosts gold resource over 1 million ounces with high-grade Viago Lode

Cardinal Resources Ltd (ASX:CDV) and Gold Road Resources Ltd (ASX:GOR) also feature amongst the eight high conviction Top Developer Pick Winners for 2019.

The following is an extract from Macquarie Research’s Global Gold Developers & Explorers: Picking the Winners – 2019:

BGL recommenced exploration at Bellevue in late-2017 and quickly discovered the Tribune and Southern Belle lodes followed up by the recent high-grade Viago lode (22.0 g/t).

The most recent resource estimate doubled the resource to 1.04 million ounces of gold at 12.3 g/t including a maiden estimate for Viago of 0.8 million tonnes at 22 g/t for 550,000 ounces.

Macquarie's global team of gold analysts have 18 Australian and Canadian developers and explorers across its coverage list, all of which are rated outperform.

BGL is well funded to drill (we estimate ~A$15 million at CY18 end) and we expect regular resource updates, and potential new discoveries to be key catalysts for the stock over 2019.

Given its high-grade and close proximity to the sealed highway, we believe Bellevue could displace lower grade ore into almost any regional processing plant.

Outlook and catalysts

We expect BGL to deliver a resource upgrade in early 2019 given the strong drilling results post the previous resource cut off.

We also anticipate consistent news flow from exploration activities particularly as BGL tries to define the extents of the high-grade Viago system.

BGL has only recently been defining extensions to the previously mined Bellevue system, and we believe this could also add further to resources over 2019.

We believe BGL to have strong acquisition potential given the projects high-grade and proximity to a sealed highway.

Gold Road (Outperform, Target Price: $0.80, Ben Crowley)

Investment Thesis: Developer with substantial Greenfields exploration exposure.

Construction of the Gruyere Gold Project (50% GOR) is now >85% complete with first gold set for early 2QCY19.

We expect GOR to receive a positive re-rate over 2019 as the company moves from a developer to a gold producer.

Exploration continues to provide upside potential to GOR with the company set to spend A$17-20 million on its systematic exploration program over the largest tenement package in the Yamarna Greenstone Belt.

Cardinal Resources (Outperform, Target Price: $0.80, Michael Gray)

Investment Thesis: Cardinal with a potential Tier 1 PFS-stage asset in Ghana.

Cardinal’s 7 million ounces gold Namdini open pit project in Ghana has a 270,000-ounce gold production profile as underpinned by its Sep/18 PFS study.

Goldfield’s, with two gold mines in Ghana, holds an 11% equity position that was purchased in the market and provides a strong validation for Namdini in our view.

We expect CDV to increasingly gain market attention and re-rate throughout 2019 as highlighted in our initiation – it controls one of the few potential Tier 1 assets globally.

Global Development Projects >250,000 ounces of gold per annum LOM production profile – owned by single asset developers

This assertion is supported by the exploration land position that has high potential to yield new satellite discoveries that could feed a central mill and for new standalone discoveries in the highly prospective Birimian Greenstone geology in Northern Ghana.

We expect exploration results, a DFS and a construction decision to be the key catalysts in 2019 and believe CDV is a prime target amongst the senior and intermediate producers.

Quick facts: Bellevue Gold Ltd

Price: 0.53 AUD

ASX:BGL
Market: ASX
Market Cap: $301.92 m
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Bellevue Gold reveals further high-grade upgrade at flagship gold project

Bellevue Gold Ltd's (ASX:BGL) Steve Parsons caught up with Proactive's Andrew Scott after announcing a further high-grade resource upgrade at their project in Western Australia. The latest update incorporates the recent Viago North and Tribune North strike extensions which are in the...

on 11/7/19

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