Bellevue Gold (ASX:BGL) has entered into a toll treating agreement with a subsidiary of Genesis Minerals (ASX:GMD).
This agreement will enable Bellevue to generate early cash flow by processing material from its Vanguard open pit at Genesis's Gwalia processing facility. The agreement marks a significant milestone for Bellevue as it progresses towards the commissioning of its own processing plant in the December 2023 quarter.
The toll treating agreement entails the transportation and processing of Vanguard ore at Genesis's Gwalia facility, located approximately 170km south of the Bellevue Gold Mine. This strategic arrangement allows Bellevue to commence cash flow generation in the September 2023 quarter, ahead of the scheduled processing at its own facility.
Currently, mining operations are underway at the Vanguard pit, with stockpiling of ore taking place during the pre-production period at the Bellevue Gold Mine.
The pit is being mined and stockpiled due to its location within the boundary of the tailings storage facility. The waste material derived from the pit mining is being utilised in constructing the tailings dam wall. The open pit mining and construction of the tailings storage facility are progressing well, thanks to the efforts of NRW Holdings Limited (ASX:NWH), the surface mining contractor.
Under the toll treating agreement, MLG Oz (ASX:MLG) will transport the open pit material to Genesis's Gwalia processing facility.
It is estimated that approximately 100,000 tonnes of ore, with an average gold grade of approximately 3g/t, will be processed as part of this agreement. By executing this agreement, Bellevue anticipates a positive NPV impact on the overall project, as the open pit material would have otherwise remained on the stockpile until later in the mine life.
Meanwhile, the construction of Bellevue's processing facility is proceeding as scheduled and within the allocated budget. The plant is expected to be ready for commissioning with underground ore in the December 2023 quarter. The underground mine development is also on track, with the fourth and final jumbo rig being commissioned on-site.
