PERTH (miningweekly.com) – Gold developer Bellevue Gold has told shareholders that its namesake project, in Western Australia, would boast some of the lowest operating costs among ASX-listed gold producers, and that the project is on track to be a 200 000 oz/y producer by the end of the second half of next year.

Bellevue last week noted that all-in sustaining costs for the Bellevue gold project are forecast to be in the range of A$1 000/oz to A$1 100/oz over the first five years of the operation.

Scope for cost escalations during the construction phase has also been significantly reduced, with more than 90% of the pre-production capital committed and contractors having been appointed.

Fellow-listed Develop was awarded a near A$40-million services contract for the construction, development and production activities at the underground mine, and mining has already started.

“We are rapidly executing the project in line with all the key forecasts contained in our extensive financial and technical analysis," said Bellevue MD Steve Parsons.

“This extensive work program, which has included leading independent experts, shows the Bellevue Project will be a 200 000 oz/y producer with low operating costs and strong cashflow generation in the tier-one location of Western Australia.

“By locking in 90% of our pre-production costs and underpinning our 10-year mine life with 1.34-million ounces in reserves, we have significantly de-risked the project and put us on a path to realising the immense value of this exceptional asset.”

Approvals for full project execution are well advanced with completed permits in place for camp construction and underground development. Remaining required approvals to deliver the processing facility and remaining infrastructure are on track for the September quarter.

Bellevue said that the project remains fully funded to production with existing cash reserves of A$151-million and the undrawn A$200-million Macquarie debt facility. First drawdown of the debt finance facility is expected in the first half of 2023.

First gold production is forecast for the first half of 2023. During the first 12 months of commercial production, the project is forecast to produce between 180 000 oz and 200 000 at an all-in sustaining cost of A$1 000/oz to A$1 100/oz.

Production for the first five years of mine life is forecast to average 200 000 oz/y at an all-in sustaining cost of A$1 000/oz to A$1 100/oz. Bellevue expected pre-tax free cashflow to average A$254-million yearly for the first five years of production.