Bellevue Gold Continues to Pave Way Towards Development (ASX:BGL)
Bellevue Gold Ltd’s [ASX:BGL] share price is up nearly 9% this morning on an announcement it is getting closer to the development stage at the historic Bellevue Gold Mine.
Like many other ASX-listed gold miners, BGL has managed to rebound strongly from the recent market crash.
The BGL share price is up 60% over a 12-month window.
But since picking up its namesake project in 2016 from Barrick Gold Corp [NYSE:GOLD], BGL is up a staggering ~5,900%.
That’s from a share price of around 2.5 cents to today’s price of $1.155 per share.
‘No Barrick sized targets’
Barrick offloaded the Bellevue mine to BGL citing a lack of economically viable targets.
BGL located a significant gold resource just adjacent to the historic gold workings, which produced 800,000 ounces between 1897 and 1997.
Since making its first drill hole in 2017, BGL has now defined 2.2 million ounces grading 11.3 grams per tonne (g/t) gold.
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With development right around the corner (in 2021, according to Managing Director Steve Parsons), BGL has begun metallurgical tests as part of economic viability studies of the project.
Some investors could be smiling today with results consistent with high recovery rates.
Basically, the recovery is the percentage of the actual gold recovered from gold ore during extraction.
Depending on the geology and type of gold mineralisation, recovery rates can vary, as can the cost of extraction.
According to BGL, overall gravity and leach recoveries from all lodes average 97.8%.
This is positive from an economic standpoint, as these are generally conventional methods.
Meaning it could help keep costs low.
Upgrade incoming for BGL…
In today’s announcement BGL also flagged a resource update is pending, which will upgrade a portion of the current 2.2Moz resource.
Step-out drilling has now resumed, meaning we could get a further update in the near future, with underground drilling not set to commence until December 2020.
Work has already begun on underground re-entry at the project.
Mr 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.’
BGL also told investors that the resource conversion to maiden indicated resource is on track for release in the coming weeks.
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For The Daily Reckoning Australia