Bellevue Gold Limited (ASX: BGL) has poured its first gold bar as it continues to make strong progress towards its goal of producing its first gold from the Bellevue processing plant in the coming quarter, with stoping now underway.
Bellevue has also confirmed that the processing and commissioning team has arrived on site and is working with the construction team to facilitate completion and start-up of the processing plant.
This was achieved as the first toll treating campaign of Bellevue material started at the Gwalia gold mine owned by Genesis Minerals Limited. The successful start of toll treating, which will generate early cashflow for Bellevue, has resulted in the first gold bar being poured. Additional campaigns are scheduled for September and October 2023.
Bellevue has obtained an additional $25 million debt facility limit from Macquarie Bank Limited. This facility is separate to the existing Project Loan Facility with Macquarie and provides a source of contingent funds and further balance sheet flexibility.
Managing Director and CEO Darren Stralow said there is no requirement or current intention to utilise the Facility and it will expire if unused on 31 March 2024, or earlier if otherwise voluntarily cancelled.
As at 31 July 2023, Bellevue had total proforma liquidity of A$133m including the new facility limit. This excludes any cashflow from the toll treatment campaign and anticipated novation and/or sale of all or a portion of certain power related infrastructure paid for directly by Bellevue up to June 2023 (up to $10 million, of which ~$7 million has now been novated/sold).
The project ramp-up is proceeding to plan as we continue to meet key project milestones such as first stoping and the start of commissioning. We are also pleased to have the ongoing support from our bankers Macquarie, which reflects the strength of the project. While we don’t currently intend to draw down the Facility, it provides us with a further liquidity buffer and balance sheet flexibility,” Mr Stralow said.
First stoping ore
Underground stoping has commenced at the Bellevue Gold project. The first stope was fired last week in the Upper Armand mining area. This panel is now complete, with the stope pulling to full height of 24 metres and planned minimum width.
Development ore drives have now accessed three of the four production areas, Armand, Marcelline and Bellevue South. Stoping will occur in each of these mining areas in the pre-production phase, which will provide stockpiled tonnes ready for processing plant commissioning.
The fourth production area, Deacon, will be accessed by development this quarter with grade control drilling currently underway.
Processing plant update
Construction of the processing plant continues to progress ahead of schedule, with all structural work, CIL tanks and painting and mechanical installations complete, while mill installation sits at 90% complete and only alignment work to be undertaken. The remaining critical path of electrical and piping installation is progressing well (both 50% complete), with all electrical cable pulls complete and both construction teams fully resourced through to the end of the project.
Construction of the crushing circuit is complete and commissioning activities have started, with energisation and bump testing of equipment underway. Commissioning personnel have mobilised, both from the EPC contractor GR Engineering Services Limited (GRES) (ASX: GNG) and in-house Bellevue personnel, with the commissioning plan finalised and the commissioning team in regular meetings and workshops.
The Bellevue processing team has been recruited and all personnel are either on site or progressing through the onboarding process. This team is on track to achieve greater than 35% female participation, with mix of both greenfields and brownfields project experience in commissioning of gold processing plants. This team will integrate with GRES through the remainder of the construction period, through commissioning and into production.
