Bellevue Gold (ASX: BGL) has confirmed that commercial production has been declared at the Bellevue Gold Project in WA.
The declaration follows the highly successful commissioning process, which has seen Bellevue ramp up production and cashflow.
Positive free cash flow1 has been delivered over the three months to 30 April 2024. Production totalled 37,338 ounces in the March 2024 quarter, putting the Company on track to achieve guidance of 75,000 to 85,000 ounces for the six months to 30 June 2024.
Bellevue will publish FY25 production and cost guidance as part of its maiden multi-year outlook, which is expected to be released in July 2024 following completion of budget and life of mine planning activities.
Expansion studies underway
As a part of this multi-year outlook, studies are underway on maximising the potential of the Bellevue Gold Project by expanding the plant beyond its current nameplate operating rate of 1Mtpa.
The plant was designed to enable throughput capacity to be increased from 1Mtpa to 1.2Mtpa with no material capital expenditure required. To confirm this, the plant was operated at an annualised throughput rate of 1.2Mt for a week during February 2024 with no material issues arising, providing confidence that this rate can be achieved on a consistent basis.
Bellevue has commenced a scoping level study on a plant expansion to 1.5Mtpa. This study will investigate capital requirements for the expansion and include non-processing infrastructure. This study is expected to be completed in H1 FY25.
Optimisation and design studies are focussed on maximising the value of the Bellevue Gold Project through the delivery of low capital intensive, organic production growth.
Power station update
As part of Bellevue’s strategy to achieve its aspirational goal of being a net-zero gold producer by 2026, change over to the thermal and renewable power solution has begun, switching from the diesel power plant used during the commissioning period. The thermal LNG components of the power plant have been fully completed and commissioned and are now providing base load power. Installation of the initial 20MW solar array has been completed with the first 7MW being now commissioned. Earthworks begin this week on the 24MW wind power turbines with completion and commissioning expected in Q1 CY25.
“We are now really hitting our straps, with the commissioning and production ramp up proceeding well and free cash flow growing,” Managing Director, Darren Stralow, said.
“In parallel with the ramp up, we are accelerating the next leg of our organic growth strategy, which centres on increasing throughput by 50% to 1.5Mtpa.
“As well as increasing production and cashflow, this would enable us to leverage existing infrastructure, drive further economies of scale and unlock greater value from our exceptional high-grade orebody.
“Low capital intensity organic growth of this nature is at the heart of our strategy to maximise the financial and overall returns for all our stakeholders.”
