PERTH (miningweekly.com) – The feasibility study into the Stage 1 Bellevue gold mine, in Western Australia, has revealed that it will be ranked among Australia’s top 25 gold mines based on annual production.

ASX-listed Bellevue Gold this week revealed that the feasibility study has estimated an average annual production of 160 000 oz between years one and five of the operation, with life-of-mine (LoM) average expected to be 151 000 oz/y.

The feasibility study estimated that the Stage 1 project would have an initial mine life of 7.4 years, with first gold pour targeted for the December quarter of 2022.

LoM all-in sustaining costs have been estimated at A$1 079/oz, while the project’s earnings before interest, taxes, depreciation and amortization have been targeted at A$1.6-billion and its annual pre-tax cashflow at A$190-million over seven years of commercial production.

The Stage 1 operation, which is expected to require a capital investment of A$225-million, will have a pay-back period of 1.4-years, generate LoM revenues of $2.5-billion, and will have an internal rate of return of 58% pre-tax, and a net present value of A$0.9-billion.

Bellevue MD Steve Parsons said this week that the feasibility study showed the project met all of the key investment criteria from both a financial and technical perspective.

“This independently-conducted feasibility study demonstrates the exceptional strength of this project. The independent experts have confirmed that Bellevue has an outstanding future underpinned by high-grade mineralisation and the need for nothing more than conventional mining and processing methods,” said Parsons.

He noted that the combination is expected to lead to low production costs, strong margins, abundant free cash flows and stand-out rates of return.

Underground development at the project is progressing rapidly, with more than 1 000 m of development completed to date, said Parsons.

Six drill rigs are currently operational at site targeting further exploration success, and there is significant growth potential at the project. Recent exploration successes will be incorporated into the Stage 2 feasibility, which is well advanced and on track for completion in the June quarter of this year.