Photo by: Bloomberg
PERTH (miningweekly.com) – Gold developer Bellevue Gold on Wednesday flagged an opportunity for early cashflow after inking a toll treatment deal with fellow listed Genesis Minerals.
Under the agreement, a Genesis subsidiary will process material from the Bellevue gold mine’s Vanguard openpit at the newly acquired Gwalia processing facility, which is 170 km to the south of the Bellevue gold mine.
This would enable Bellevue to generate early cash flows in the September quarter ahead of scheduled processing at the Bellevue processing plant in the December quarter of this year.
Approximately 100 000 t of ore, with an average grade of around 3 g/t gold, is planned to be processed as part of this agreement. The execution of the toll treating agreement will be net present value accretive to the project overall as the openpit material would otherwise remain on the stockpile until later in the mine life, Bellevue told shareholders.
Trucking and toll treating are expected to be completed in the September quarter.
Construction of the Bellevue processing facility continues on schedule and on budget, with the plant expected to be ready for commissioning with underground ore in the December quarter. Underground mine development also remains firmly on track with the fourth and final jumbo rig now on site and being commissioned, Bellevue said.
During the first 12 months of commercial production, the Bellevue project is forecast to produce between 180 000 oz and 200 000 oz at an all-in sustaining cost of A$1 000/oz to A$1 100/oz.