PERTH (miningweekly.com) – Gold developer Bellevue Gold will look at increasing the annual production at its namesake project in Western Australia, as resources continue to grow.

Bellevue Gold on Thursday reported a further 11% increase in the total resource for the Bellevue project, which now stood at 3-million ounces, grading 9.9 g/t gold.

The resource estimate was also 25% higher than the base used in the Stage 1 feasibility study, which was released earlier this year, with the indicated resource now standing at 1.4-million ounces, at 11 g/t gold, compared with the 1-million ounces used in the study.

Bellevue told shareholders that the Stage 2 feasibility study would consider the option of increasing the production plant capacity from 750 000 t/y to 1-million tonnes a year, which is expected to incur minimal capital expenditure, but would have a material impact on the project’s economics.

“We are advancing, growing and de-risking the project at the same time. This substantial resource increase means we have ticked an important box in our strategy to grow the forecast production rate by expanding mill throughput to one-million tonnes a year,” said Bellevue MD Steve Parsons.

“Given the surplus capacity built into the Stage 1 feasibility study, we believe we can achieve this expanded throughput rate for minimal additional costs. This means we stand to generate increased free cashflows from the higher production rate and greater economics significantly.

“The strong outlook for the project is also demonstrated by the highly favourable indicative proposals we have received from lenders. We expect to compile a shortlist of lenders in the coming weeks.”

The Stage 2 feasibility study is also scheduled for release later this quarter.

The previously completed Stage 1 study estimated an average annual production of 160 000 oz between years one to five of the operation, with life-of-mine average expected to be 151 000 oz/y.

The feasibility study estimated that the project would have an initial mine life of 7.4 years, with first gold pour targeted for the December quarter of 2022.