Bellevue is sitting on a big nickel patch, but thinks gold is definitely a better bet
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Junior explorer Bellevue Gold is sitting on one of the “biggest nickel belts in the world” but has no plans to look for anything other than gold right now.
And why would it? The gold price just hit another all-time high – shooting past $1870 on Wednesday.
Bellevue (ASX:BGL) has one of the highest grade gold projects in Australia.
But the two decades before Bellevue snapped up the project, it was owned by nickel companies.
It did, however, produce around 800,000 ounces of gold at a high-grade of about 15 grams per tonne (g/t) between 1986 and 1997. Anything over 5g/t is generally considered high-grade.
“We’re having great success with gold at the moment and the momentum is there for gold for us,” boss Steve Parsons told Stockhead on the sidelines of the RIU Explorers Conference in Fremantle, WA.
“Maybe at some point in the future we’ll start looking for the other commodities.
“There’s real strong potential on the property. It’s one of the biggest nickel belts in the world that we own a big portion of, but we haven’t had a chance to go looking for the nickel.
“So we think our expertise right now is about gold and the market is rewarding us for finding gold.”
Investors definitely agree, with the company’s share price hitting its highest point of 67c last week. Bellevue has gained over 400 per cent since mid-June last year when it dipped to a low of 12c.
Earlier in February, Bellevue again boosted the size of its namesake Western Australian gold project, this time by 43 per cent to 1.53 million ounces at a grade of 11.8g/t.
It has only taken a little over 12 months from discovery to this latest resource and Bellevue is on track to release yet another resource upgrade in the second quarter of this year.
Bellevue has four rigs turning on its gold project and is racking up ounces at a low cost of $15 an ounce.
According to Mr Parsons, depending on where you are in the world, generally discovery costs average closer to $50-$60 an ounce.
And he is confident the past producing Bellevue mine still has lots left to give.
“It’s a multi-million-ounce system without a doubt and these multi-million ounce systems go very, very deep.
“We’re only just scraping the surface in the top 500m and they typically go down to 1.5-2km, maybe even deeper than that and that’s what we’ll be hoping happens at Bellevue.
“We’re over the moon that the stars are aligning and the fact that we are discovering high grade ounces and the gold price is going up as well.”