Bellevue Gold Ltd (ASX:BGL) recently received strong support from investors globally for a fully underwritten institutional placement which has raised $18.5 million.
Funds will be used for the continued advancement of the flagship Bellevue Gold Project in WA, which is one of the world’s highest-grade gold projects.
Following is an extract from Macquarie Research’s Flashnote on BGL:
BGL’s Managing Director, Mr Stephen Parsons, presented to the Diggers and Dealers Mining Forum.
1.8Moz and counting: BGL has defined 5Mt at 11.1g/t for 1.8Moz of inferred resources at the Bellevue gold projects since late 2017. Mr Parsons noted that the Bellevue system was thought to be faulted off at depth with the mine historically producing close to a million ounces at ~15g/t. BGL has defined ~4kms of mineralised strike to date at Bellevue with the system open in all directions.
Funded for further resource drilling: BGL recently completed an equity raise to build the company’s cash balance to A$35m, with Mr Parsons noting a significant exploration spend is underway with 6 diamond drill rigs currently drilling on site. Mr Parsons is aiming to publish the next resource update in 1QCY20 with expanded Inferred resources expected along with a modest component of maiden Indicated resources.
New Bellevue discovery at depth: Today BGL announced the confirmation of a new discovery at Bellevue at 500-650m below surface. Importantly, the new lode is below the historical mining areas which were previously thought of as being the depth extent of the system. The new discovery is defined by drill intercepts ~200m apart which continues over a strike length of ~1km and is open in all directions. MR Parsons noted that this discovery confirms the Bellevue mineral system does continue at depth. Drill results from this new discovery include 3.6m at 18.3g/t gold, 2.5m at 5.1g/t and 2m at 4.3g/t.
Action and recommendation
Maintain Outperform. With many new targets recently identified, we expect to see some further growth from areas outside the four main resource areas towards the back end of CY19. Importantly, the most recent discovery confirms Bellevue’s prospects at depth and below historical mining level. With 6 rigs on site and A$35m in cash to explore with, we expect BGL to present an expanded resource update in 1QCY20.