Bellevue Gold Ltd (ASX:BGL) reached a record high of $1.22 after metallurgical test work at its Bellevue Gold Project in Western Australia generated recoveries averaging 97.8% across the multiple lodes.
These results were achieved using conventional gravity and leaching processes and standard reagents, confirming the ability to extract gold using conventional gravity and CIL processing flowsheets.
Shares in the company were more than 15% higher, reaching a new a record high of $1.22 intra-day, and have climbed from 28.5 cents on March 19.
Bellevue managing director Steve Parsons said the metallurgical results joined the growing list of strong results being generated across the board at Bellevue.
He said: “We have established a 2.2 million ounces resource at 11.3 grams per tonne, we have just hit high-grade gold 7 kilometres away from the resource and we are now finalising a maiden indicated resource.
“These exceptional recovery rates, combined with the economic studies and other preparations underway, will position us to develop a project in a Tier One location with very high grades and a host of other extremely attractive features.”
Underground re-entry supported
Geotechnical, visual inspections and test work programs have been completed in preparation for underground re-entry.
The LIDAR point cloud survey data showed the condition of the existing underground infrastructure, highlighting the state of the current ground conditions as suitable for mechanised re-entry to be established and favourable for standard ground support requirements.
Parsons said: “All work that has been conducted on the underground infrastructure, points to a very low level of capital intensity for mechanised re-entry which is an amazing result given underground entry has not occurred in over 23 years.
“The 3D LIDAR survey highlights the competency of the surrounding ground conditions.
“We are currently on track with our dewatering program that will allow us to drill from underground in the fourth quarter of this calendar year.”
Drilling from underground is set to start in the December quarter, 2020.
Further metallurgical test work is being conducted by independent metallurgical consultant Nathan Stoitis on the gravity recoverable gold component to optimise the gravity circuit design requirements, which will feed into other studies being carried out.
Tenders for both pit wall rehabilitation, underground development and stripping have been received from multiple contractors with a strong interest shown in bidding for the works.
Additionally, a resource update is pending which will upgrade a portion of the current 2.2 million ounces at 11.3 g/t gold inferred resource to the indicated category.
Step-out exploration drilling has resumed with a 10,000 metres regional discovery drilling program underway along the 20-kilometre Bellevue mineralised corridor.