Bellevue Gold Limited has provided an update on the Bellevue Gold Project’s construction and development, including the commencement of open pit mining at Vanguard.
NRW Holdings Limited, an open pit mining contractor, is currently fully mobilised on site. Vanguard open pit mining has begun, and the tailings storage facility (TSF) is being cleared.
According to Bellevue, NRW has extensive hard rock open pit mining knowledge and is equipped with all the necessary personnel and machinery for the Vanguard project. The deal’s overall value, which also covers mining the Tribune boxcut, is around $24 million, which is in line with the anticipated pre-production capital expenditures.
Under a toll treating agreement, mining at the Vanguard open pit will allow Bellevue to produce cashflow. The pit is estimated to produce 10,000 oz gold, ready for processing. Bellevue is now discussing toll treatment options with mining companies in the region. Once mined, Vanguard waste material will serve as the foundation for the TSF.
With the arrival of the ball mill on site and ready for installation, construction of the 1.0Mtpa nameplate processing facility continues on schedule and within budget. Bellevue said this is a significant step forward in the construction process. All crucial components are now in Australia, considerably reducing the project’s risk of failure. Secondary and tertiary crushers are in place, with significant progress on the crushing circuit’s structural steel work completed in March 2023. The mining administration building and office facilities are likewise on track for completion in April 2023.
Underground work is progressing nicely, with almost 10 kilometres completed. Develop Global Limited, an underground mining contractor, maintains a full workforce and generates exceptional development rates, with three underground jumbos running and targeting more than 300m of progress per jumbo monthly. Establishing the two raisebores continues, reaming at the northern escape path and the southern vent rise.
Power Purchase Agreement update
Bellevue’s ambitious objective for the Bellevue Gold Project is to achieve net-zero greenhouse gas emissions by 2026. This will be supported by a sector-leading renewable energy power plant that aims for a renewable energy penetration rate of up to 80%.
The power station has begun construction, with earthworks and concrete foundations for the thermal station completed. Critical electrical infrastructure has been secured, including essential long-lead components and the switchroom.
Energy Developments Pty Ltd (EDL) and Bellevue have been negotiating the project’s power purchase agreement (PPA). Bellevue and EDL’s early works agreement expires on March 31, 2023. Bellevue has novation rights over the contracts for the long-lead commodities ordered by EDL and expects to use such rights if needed.
Bellevue is in talks with several independent power providers about supplying long-term power to the project. This strategy is intended to ensure that Bellevue obtains the best commercial terms possible for power delivery. The selected tenderer is anticipated to buy the long-lead products as part of its PPA.
Macquarie provided EDL with a $38 million bank guarantee to secure early works equipment as part of the early works deal. This bank guarantee will be issued until contract novations are completed, any money owed to EDL is paid, and the bank guarantee is returned or expires. Bellevue has cash-backed this bank guarantee since 31 March 2023, and these funds will be released upon the return or expiration of the bank guarantee.
