PERTH (miningweekly.com) – The Stage 2 feasibility study into the Bellevue gold mine, in Western Australia, has confirmed both a longer mine life and higher life-of-mine (LoM) production.

ASX-listed Bellevue Gold on Thursday reported the results of the Stage 2 feasibility study, which has seen the project’s LoM increase from the 7.4 years estimated in the Stage 1 feasibility study, to 8.1-years, while LoM production increased from 151 000 oz/y to 183 000 oz/y.

Total capital costs for the project have declined slightly from the A$269-million in the Stage 1 study to A$267-million, while revenues have increased from A$2.5-billion to A$3.5-billion and all-in sustaining costs over the LoM from A$1 079/oz to A$1 014/oz.

The Stage 2 study has increased the LoM earnings before interest, taxes, depreciation and amortisation from A$1.6-billion to A$2.4-billion, while the post-tax net present value has increased from A$562-million to A$943-million and the internal rate of return from 35% to 62%.

Bellevue MD Steve Parsons said the Stage 2 study established Bellevue as a member of the exclusive club of global gold miners with first-class technical and financial characteristics.

“There is one key point of differentiation between this exclusive group of which Bellevue is now a member and other rankings in the industry,” Parsons said.

“That point is superior financial performance. Only seven other assets in the world boast a grade of more than 5 g/t and annual production of over 180 000 oz in a tier-one location.

“This study shows Bellevue has reserves of one-million ounces at 6.1 g/t. That underpins annual production of 200 000 oz at an all-in sustaining cost of just A$1 014/oz, which in turn generates pre-tax cashflow of A$270-million a year,” Parsons said, adding that there was significant scope to continue growing the production rate and mine life.

“Only 50% of the three-million-ounce resource sits within the mine plan, and since we completed the current resource estimate in July, we have announced a number of strong drilling results from outside this inventory.

“These results demonstrate the potential for further increases in the annual production rate and mine life. With this in mind, we have designed the processing plant so that it can be expanded quickly and in a cost-effective manner.”

Meanwhile, Bellevue announced that it was fully funded to proceed to construction, having secured an underwritten and credit-approved project loan of A$200-million from Macquarie Bank.

Bellevue is also undertaking a placement to raise A$106-million through the issue of more than 124.8-million shares, at a price of 85c each, under its existing placement capacity.

In conjunction with the placement, Bellevue is also conducting a share purchase plan (SPP) to raise up to A$25-million, with details of the SPP to be revealed shortly.

“We are pleased to accept Macquarie Bank’s very competitive and comprehensive support by way of its A$200-million fully underwritten long-term debt facilities to assist Bellevue transition from explorer to producer,” Parsons said.

“The significant size and timing of Macquarie’s commitment and its election to take fees in equity is indicative of Macquarie’s long-term confidence in the Bellevue gold project.”

Bellevue is hoping to start gold production in the second quarter of 2023.