Bellevue Gold Share Price Rises on Pending Resource Upgrade
The Bellevue Gold Ltd [ASX:BGL] share price has spiked today thanks to drilling results, which the prospective miner says will pave the way for a resource upgrade.
The BGL share price has had a solid run since the market crash in March, climbing 280% since its low.
Shares have been spurred along by a historic gold price and strong drilling result at is Bellevue Gold Project in the Norseman-Wiluna gold belt of WA.
Though the BGL share price has met some resistance, hovering just above the $1 mark, occasionally flirting with the $1.20 mark.
At time of writing, BGL share are 6.5 cents higher or 6.34% to trade at $1.09 per share.
High-grade results pave way for upgrade
Today, Bellevue announced its latest drilling results form the Deacon, Deacon North, and Bellevue Lodes at the Bellevue Gold Project.
With gold hits of up to 163 grams of gold per tonne (g/t), BGL say the latest results will give them greater scale at the project.
- 3m at 5.8 g/t gold from 757.3m — Deacon
- 3m at 5.8 g/t gold from 757.3m — Deacon North
- 6m at 34.8 g/t gold from 241.8m — Bellevue
- 1m at 14.5 g/t gold from 457.5m — Bellevue
Bellevue said drilling intersected high-grade mineralisation both outside and within the existing known resource boundary.
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Meaning, results indicate a larger overall resource.
Managing Director Steve Parsons said:
‘We have hit more high-grade mineralisation in previously-untested areas. These results extend the known limits of the mineralisation. At the same time, our infill drilling continues to return strong results which should help drive an increase in the Indicated Resource.
‘This all points to a larger overall mineralised envelope with more gold in the high-confidence Indicated category, which in turn gives us even greater scale while continuing to de-risk the project.’
How big are we talking?
If you haven’t followed our analysis of BGL, the prospective gold producer delivered a maiden indicated resource in July of 860,000 ounces at 11.6g/t gold.
The indicated resource forms part of Bellevue’s total 2.3Moz global resource at 10g/t.
BGL said that drilling is on track to deliver a further increase in the indicated resource in the December quarter.
It has taken BGL just under three years since the first discovery hole to grow their resource to 2.3Moz — and is still open in all directions.
BGL’s project timing is also fortuitous as Australia looks to knock China off the top spot as the undisputed global leader in gold exploration, mining, and production. In our latest report, gold expert Shae Russell breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.
For The Daily Reckoning Australia