Bellevue Gold Limited (ASX: BGL) has awarded a preliminary works agreement for the engineering, procurement and construction (EPC) of the 1Mtpa gold processing plant at the Bellevue Gold Project in Western Australia to GR Engineering Services (GRES).
GRES will now commence design engineering services and locking in long lead and critical path items including the ball mill, crushing equipment, screens, agitators, leach and tailings thickeners. Bellevue and GRES expect to finalise a full EPC contract shortly, which is expected to be in-line with the previously released cost estimates.
Bellevue Managing Director Steve Parsons said GR Engineering knew the project well from its work during the study phase.
GR Engineering is one of the most recognised and reputable name in the Australian gold processing industry.” Mr Parsons said.
“It’s fantastic to have another Tier 1 business involved in the development and construction phase. ‘’Commencing manufacturing of these long-lead critical components of our 1.0Mtpa processing plant de-risks the construction schedule and puts Bellevue on the pathway to first gold in the second half of 2023.
“The appetite among leading contractors and suppliers to be involved with our project speaks volumes about its strong future”.
GR Engineering Managing Director, Geoff Jones, said the company is pleased to be working with the Bellevue team on this exciting gold project.
“This project further enhances GR Engineering’s reputation as the leading gold EPC contractor in Australia. GR Engineering continues to build its pipeline of work in FY23 and future years.”
Reserves update
Bellevue Gold recently reported further growth in the Indicated Resource at the Bellevue Gold, with the numbers increasing Indicated Resources increased to 4.6Mt @ 11.2 g/t gold for 1.7Moz. Global Resources total 9.8Mt @ 9.9 g/t for 3.1Moz
Indicated Resources have been growing at a 43% annual growth rate since the maiden Indicated Resource in July 2020. Drilling from underground is creating significant productivity and cost advantages and has resulted in an industry-leading Resource conversion cost of less than $25 per Indicated ounce.
The Updated Resource is based on an additional 42,250m of underground drilling completed since the Stage Two Feasibility Study (FS2) was released in September 2021
Mr Parsons said the increase was highly significant because the increased Indicated Resource would underpin further growth in the Project Reserve and LOM inventory in the upcoming optimisation study.
“Organic growth like this is one of the most effective ways to create value for shareholders,” Mr Parsons said. “We are adding Indicated ounces at a cost of less than A$25/oz at one of Australia’s highest grade undeveloped gold mines.
“This increased Indicated Resource is expected to lead to increased Reserves and a longer mine life compared with the already-impressive metrics in the FS2 study.
“Work on the optimised Reserve and mine life is well advanced and we expect to complete these studies within weeks.”