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Bellevue Gold outlines “outstanding quarter” for namesake project with significant scope for growth

Gold resources up 23% to 2.2 million ounces; Maiden indicated resource set for June; Studies point to multiple high-grade starter pits; World’s largest resources fund emerges with 10% stake.

Bellevue Gold Ltd - Bellevue Gold outlines “outstanding quarter” for namesake project with significant scope for growth
The company is well funded with $37.8 million in cash as at March 31

Bellevue Gold Ltd (ASX:BGL) has outlined its achievements during the March 2019 quarter during which the Bellevue Gold Project has been established as a large, high-grade WA gold project with significant scope for more growth.

The highlights of the quarter include:

Resource growth

Total inferred resource at the Bellevue Gold Project rose 23% to 6.1 million tonnes at 11.3 g/t for 2.2 million ounces.

The increase stemmed from the maiden resource at the Deacon Lode of 410,000 ounces at 12.3 g/t.

The Deacon Resource covers the central 900 metres of the recently extended 2 kilometres mineralised strike with numerous high-grade intersections still outside the resource awaiting closer-spaced drilling

Infill drilling completed

Bellevue completed the first phase of an infill drilling program ahead of schedule and on budget, putting Bellevue on track for a maiden indicated resource in June.

The infill drilling returned a host of high-grade intersections and supports the existing inferred resource model.

World’s largest resources fund emerges with 10% stake

Bellevue raised $26.5 million from a share placement during the quarter which saw the world’s largest resources fund, Blackrock, emerge with a 10% stake in the company.

The company is well funded with $37.8 million in cash as at March 31, 2020.

Project development

  • Strong progress has been made with dewatering of the historic Bellevue underground; this process is on track and within budget.
  • Dewatering of the Bellevue underground mine will deliver significant benefits, including:
    • Access to +28,000m of existing underground mine development;
    • Significantly lower costs for drilling M&I category resources;
    • Lower cost and more rapid drilling of Deacon and Mavis Lode discoveries;
    • Access for drilling resource extensions to the south and across the project; and
    • Development ready for future mining options.
  • Desktop studies highlighted the potential for multiple starter open pits which could generate early cashflow based on shallow, high-grade mineralisation.

Exercise of options by managing director

Managing director Steve Parsons exercised 20 million Bellevue options at a total cost of $775,000.

This includes 15 million options with an exercise price of 4 cents and 5 million options with an exercise price of 3.5 cents.

As a result, Parsons now holds 30 million Bellevue shares, making him a top-ten shareholder in the company.

Parsons said he has grown his shareholding to ensure he participated fully in the company’s future growth on the back of the Bellevue Gold Project.

Quick facts: Bellevue Gold Ltd

Price: 1.25 AUD

ASX:BGL
Market: ASX
Market Cap: $1.05 billion
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