Tag Archives: Bellevue Gold

Bellevue Gold reinforces sustainable production growth plans with addition of Sandvik DD422iE BEV

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Bellevue Gold Limited has started the underground decline development at the Tribune portal, part of its namesake mine in Western Australia, employing a new Sandvik DD422iE battery-electric jumbo as part of its production growth strategy.

The Tribune decline milestone is significant because Tribune will provide a second independent mine access route. It will be the sixth independent mining area, which is being developed by an additional fifth jumbo (the Sandvik 422iE). It is expected to access ore from the Tribune lode in the December 2024 quarter.

Bellevue’s Managing Director and Chief Executive Officer, Darren Stralow, said: “The commencement of Tribune is important as it not only provides an additional mining area and haulage decline, but it also creates the platform for commencement of the southern drill drive to target mine life extensions.

“The key infrastructure upgrades are a core part of the Bellevue growth plan and will unlock the ability to achieve the mining rates required for increased production. We are already seeing the benefits of increased ventilation and work areas in our underground mining rates, and the successful dewatering of the old workings unlocks high-grade ore to mine in the upcoming quarters that was previously inaccessible.”

Underground development rates are scheduled to increase over the second half of the company’s 2025 financial year as infrastructure constraints are released and more working areas become available, with the production expected to be back-ended to the second half of the financial year as further development headings and underground advance rates ramp up to a forecast run rate of 1.35 Mt/y by the end of the financial year.

Production guidance for FY25 is 165,000-180,000 oz at a project all-in sustaining cost of A$1,750-1,850/oz ($1,166-1,233/oz) of gold with the production profile weighted towards the second half of this financial year.

The company recently released its five-year growth plan which sees production forecast to ramp up to more than 200,000 oz/y run rate from the last quarter of that financial year before reaching circa-250,000 oz/y in the 2028 financial year.

The ramp up of underground tonnages continues to advance with the key ventilation upgrade in construction and commissioning due to commence on September 18, 2024. The ventilation upgrade will initially increase underground vent flows by 50% and will provide fit-for-purpose vent fans suitable for the life of mine, Bellevue says. Historic mine dewatering has also reached a significant milestone with the dewatering of the old workings now allowing for the removal of the safety exclusion zone from the historic underground. This will unlock mining of high-grade development and stoping in the Armand mining area.

These two key infrastructure works are expected to assist in de-bottlenecking the underground and allow more efficient use of the mining fleet.

The addition of a Sandvik DD422iE battery-electric vehicle, which trams on battery and plugs into the mine’s captive power infrastructure during drilling operations, demonstrates Bellevue’s commitment to electrification of the mining fleet where practical, the company says.

The Sandvik DD422iE is an electric development jumbo designed to drive down production costs while reducing the environmental impacts of drilling and tunnelling. By using electric energy from an onboard battery during tramming, Sandvik DD422iE produces zero emissions while manoeuvring between headings, the OEM says. This improves health and safety for miners working underground. Less diesel usage in a mine thanks to diesel-free drilling can ease ventilation requirements, while also reducing associated diesel logistics and maintenance expenses. Using a mine’s existing electric infrastructure, the Sandvik driveline technology enables the battery to recharge during the drilling cycle. The battery will even recharge while Sandvik DD422iE is tramming downhill, using energy generated by the braking system.

State of Play report highlights expected solar dominance in future mine power mix

Environmental, Mining industry recognition, Mining services, Power supply for mines, Sustainable mining, , , , ,

The State of Play’s latest industry report has highlighted the increasing prevalence of solar use across the Australian mining landscape, with global mining leaders predicting that solar will be the main energy source in just 15 years as the sector shifts to renewables.

The report, The State of Play: Mining Strategy in a Changing World, received input from over 700 global mining leaders, from major mining groups such as Rio Tinto, BHP and South 32. It uncovered mining leaders predicting oil and diesel will only contribute around 20% of the future energy source for the industry, with 79% indicating solar will be the main energy source over the next 15 years.

The predicted shift comes as pressure mounts for the mining sector to do more in the space of renewables with the majority of mining leaders (91%) believing they are viewed negatively by society as a whole with respect to climate, the report states.

State of Play Chair, Graeme Stanway, says the energy transition, alongside a government push to capitalise on green critical minerals, provides a viable pathway for industry to take action and catalyse industry-wide transition.

“Our data shows that both the energy transition and environmental pressures are in the top three global trends that are expected to have the biggest impact on innovation and change in the mining over the next 15 years,” he said. “Society is expecting the mining industry to step up, and as a consequence we are seeing innovations in processing, new energy sources and technologies. Technology like long duration energy storage has come a long way in the last few years, as has the use of artificial intelligence.”

Companies such as Bellevue Gold (solar operation pictured above) are in the process of developing assets with over 80% renewable penetration, while others, such as Gold Fields, have trialled numerous electric vehicles.

Other insights from the report include:

  • 56% of all respondents stating geopolitical alliances will have the biggest impact on global supply chains in the mining industry;
  • 81% of respondents believe battery minerals will offer the most attractive investment returns over the next 15 years;
  • Nearly 70% of CEOs suggested their timeframe for innovation focus was less than three years; and
  • 67% of respondents stated they believed there would be a carbon-based price differential for their commodities in the next five years.

MLG Oz set to work with Genesis Minerals in Leonora

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MLG Oz Limited has been awarded a contract to supply integrated site services and haulage works to Genesis Minerals Limited’s Leonora gold project in Western Australia.

The award is still subject to the final execution of contracts however the scope of works and commercial terms for the three-year agreement have been agreed. MLG will work closely with Genesis to support its strategic growth plans in the prolific Leonora District, playing a key role in delivering Genesis’ “right ores in the right mill” operating model, it says.

The contract is due to commence in November 2023 with ramp up of production to transition through 2024. Full year revenues in MLG Oz’s financial year 2025 are expected to be circa A$15 million ($9.6 million) growing to circa A$30 million in FY2026.

MLG founder, Managing Director and majority shareholder, Murray Leahy, said: “We are immensely excited about the opportunity to partner with Genesis and help support their strategic objectives in the Leonora district.

“MLG’s regional position across the Leonora mineral field and strength of our underlying operations across this region ensures we are well placed to grow with Genesis and help them execute on their long-term strategy.”

“We are delighted to be welcoming Genesis as a new strategically important customer through the award of this contract allowing MLG to play a major role in the enhancement and growth of mineral production in the Leonora region. The Leonora Mineral field is currently going through a level of consolidation and growth in processing capacity not experienced before. MLG’s large regional presence and scale of support infrastructure located within the region that is currently delivering for our high-quality customer base positions us extremely well to capitalise on these opportunities.”

MLG is already interacting with Genesis as part of a haulage services contract with Bellevue Gold which involves processing Bellevue’s open pit material at Genesis’s Gwalia processing facility.

MLG Oz makes contract inroads with Ora Banda, Gold Fields, Bellevue Gold

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MLG Oz says it has been selected as the preferred supplier for the provision of haulage and site services at Ora Banda Mining’s Davyhurst site, in Western Australia, on top of receiving a letter of award from Gold Fields for the provision of construction works for the latest tailings storage facility project at the gold miner’s 50% owned Gruyere gold mine (pictured), also in Western Australia.

The company is currently finalising contract execution for a two-year extension, plus a one-year option, to its existing arrangements for the provision of services at Davyhurst. It would come with new commercial terms across the scope of works already being provided negotiated in line with current cost drivers and production expectations, with annual revenue subject to production and performance anticipated to be
approximately A$15 million/y ($10.2 million). This is subject to a contract being signed.

Ora Banda Mining owns an existing centralised 1.2 Mt/y processing hub, as well as additional established infrastructure at Davyhurst.

The letter of award with Gold Fields, meanwhile, is for the provision of construction works for the Gruyere Tailings Storage Facility Stage 4 (TSF) project at the gold mine, a joint venture between Gold Fields and Gold Road Resources. The award is still subject to the final negotiation of contract terms. The anticipated contract length is around eight months, with total revenue of approximately A$17 million subject to final terms and key milestones being achieved.

In addition to this new scope of works, MLG has also agreed to commence haulage services for Bellevue Gold from its open pit to Genesis’s Gwalia processing facility, also in Western Australia. The initial works are expected to commence this month and run for approximately three
months and contribute circa-A$4 million in revenue.

MLG founder, Managing Director and majority shareholder, Murray Leahy, said: “We are very pleased to be able to extend our relationship with Ora Banda Mining and to be able to continue to support their Davyhurst operation under mutually agreed terms. The extension of this contract and the award of the new contracts with Gold Fields and Bellevue Gold are evidence of our strong client relationships, and further demonstrate MLG’s broad capability both in terms of haulage and site services, but also in the support for our growing civil construction business.”

Bellevue Gold appoints NRW Holdings Limited as open-pit mining contractor

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Bellevue Gold says it has awarded the open-pit mining and tailings facility construction contract for its namesake mine in Western Australia to a subsidiary of NRW Holdings Limited.

The contract has a total value of circa-A$24 million ($16 million), which Bellevue says is in line with the pre-production capital expenditure forecast.

Mining at the Vanguard open pit is set to commence in late March-early April 2023 and will offer Bellevue the opportunity to generate early cashflow via a toll treating arrangement, it says. Once mined, waste material from Vanguard will form the basis of the tailings facility.

Vanguard is scheduled to provide approximately 10,000 oz of gold, which will be available for processing in mid-2023, well in advance of the completion of the Bellevue processing facility. The company is exploring toll treatment options with mining companies in the region and discussions remain ongoing.

As part of the company’s plan to accelerate underground development and bring on additional ore sources, commencement of the Tribune boxcut will also be brought forward to open up the Tribune mining front.

The addition of the Tribune ore source will increase the number of active working fronts to five in the first year of production, further de-risking the production outlook by providing another independent mining area. Strategically, this will also provide options for drilling the southern extensions of the orebody from underground and allow for a top-down mining method, which will provide the most efficient method of accessing the orebody, according to Bellevue Gold.

The Tribune boxcut is scheduled to commence immediately after completion of the Vanguard open pit. This will create a considerable saving on de-mobilisation and mobilisation costs of the open pit mining fleet.

Construction of the 1 Mt/y nameplate processing facility, being built by GR Engineering, continues to advance on schedule and budget, meanwhile. Bulk and detailed earthworks for the processing plant site have all been fully completed, structural concrete on all critical infrastructure foundations has also been completed with only very minor concrete works remaining. The erection of structural steel for the crushing circuit is well advanced, while both secondary and tertiary crushers are on site and ready for installation. Work is continuing on critical path carbon-in-leach tanks, with five now at full height and well ahead of schedule.

The first two delivery lots of the three for the ball mill and components have landed in Perth ready for transport to site with a third due to land this quarter, well ahead of critical path requirements.

Underground development remains on track with full ramp up of the third jumbo achieved during January 2023. All three jumbos maintained full shift production, achieving >300m per jumbo per month on mostly capital development. Ore development is underway at the Armand work area, while capital development continues to advance towards the Bellevue South/Viago, Deacon Main and Marceline production areas.

Grade control drilling activities are ongoing with two underground diamond rigs operating at the Armand, Marceline and Bellevue South areas. Recent drilling has continued to reinforce the geological model and further de-risk the resources ahead of mining. A third underground rig has commenced targeting resource/reserve growth mainly at the Deacon Lode.

Bellevue Gold on its way to achieving ‘holy grail’ with EDL pact

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Bellevue Gold Limited says it has taken a pivotal step towards its aspirational goal of becoming Australia’s first ASX-listed gold miner with net-zero emissions by signing an Early Works Agreement with Energy Developments Pty Ltd and locking in long-lead items for its power station, ready for the processing plant commissioning in mid-2023.

The purchasing of the long lead items will see the company continue its carbon mitigation strategy, based off proven technologies with a Tier 1 power supplier, it said.

This agreement is a key step in Bellevue’s strategy to be powered by a forecast average of 80% renewable energy each year using a wind, solar and battery hybrid power solution.

EDL built, owns and operates a similar turnkey power solution at the Agnew gold mine, around 35 km south of the Bellevue gold project.

Bellevue and EDL are currently negotiating a Power Purchase Agreement for the project, which is subject to approval by the boards of both EDL and Bellevue.

Bellevue says its power solution is central to the company’s goal of generating the lowest carbon emissions per ounce of gold produced by any major Australian gold mine, with forecast emissions of between 0.15-0.20 t of CO2e/oz.

“As well as being the lowest emitter on a per ounce basis, the project is forecast to have the lowest total Scope 1 emissions of any major mine in Australia,” it said. “This will give the project the cleanest power supply in Australia based on a greenhouse gas per kilowatt hour basis of power generation.”

By reducing greenhouse gas emissions, with a renewable energy power station and undertaking other sustainable initiatives, Bellevue aims to produce carbon-neutral gold, giving the company a major competitive advantage in global investment markets, it says. This also provides potential for the company to seek a premium for the sale of ‘green gold’, it added.

The power station will prioritise the use of renewable energy and will also include a gas engine configuration, which, it says, will ensure there is sufficient power for the mine, even in the rare absence of solar and wind resources.

EDL will supply trucked LNG to the project to maintain optionality for any future technological innovations in thermal generation alternative fuels. Trucked LNG provides a much cleaner fuel than diesel, which was an important consideration to reduce emissions as far as possible, it said.

At a steady-state production rate of 1 Mt/y, renewable energy is expected to meet up to 80% of the project’s annual electricity needs, taking advantage of the region’s strong solar and wind resources.

Bellevue says it has been modelling the wind speeds and direction with a SODAR unit, which has allowed for the integration of wind turbines to increase the renewable energy penetration rate.

Maximising renewable energy uptake has been a key design consideration for the processing facility. The facility will have the ability to use more power – such as crushing and heating – when increased renewable energy is available, reducing thermal requirements, according to the company.

The planned infrastructure includes an oversized crushing circuit to facilitate a processing rate of more than 1.5 Mt/y (against current throughput rate of 1 Mt/y), allowing the operational flexibility in this area for an optimised match up of the renewable energy demand to the renewable energy resource.

The designed infrastructure will allow Bellevue to have a cost-effective renewable energy supply and optimise the power demand curve to better align with key daytime (solar) and night time (wind) energy peaks and troughs. Through the generation of power from renewable energy sources, it will create the optionality for the crushing circuit to maximise crushing in peak renewable energy generation periods. This will have the potential to offset more than 1 MW in demand on thermal power generation and lead to a direct cost saving and emissions reduction.

Bellevue Managing Director, Steve Parsons, said: “EDL is a leader in hybrid off-grid power stations. Their skills and experience will help ensure we maximise the use of renewable energy at the Bellevue gold project.

“Bellevue is forecasted to be a 200,000 oz a year gold miner with low all-in sustaining costs of A$1,000-A$1,100/oz ($644-$708/oz) powered by circa-80% renewable energy, with a pathway to net-zero emissions as a world-leading company in the race to decarbonise the mining sector.

“Our pre-production carbon mitigation strategy has been strategic and is world leading. It achieves the ‘holy grail’ of lower emissions and a direct cost reduction in power generation.

“The combination of these metrics is expected to will position Bellevue as one of the most sustainable and financially successful Australian gold miners, maximising returns for all stakeholders. It will also underpin the company’s strong appeal to global investors, who demand performance on both financial and ESG measures.”

On the same day as the EDL announcement, the company signed a Native Title Agreement with Tjiwarl (Aboriginal Corporation) RNTBC, being the native title rights and interests holders and traditional owners of the land which hosts the Bellevue gold project.

RCT to equip Develop with autonomous loading options at Bellevue gold project

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RCT says it is partnering with mining services company Develop to deploy state-of-the-art digital automation technology at its recently-awarded Bellevue gold operation in Western Australia.

RCT’s digital ControlMaster® solution will empower Develop with the best autonomous technology to safely manage its underground mobile equipment fleet and make consistent production gains, according to the company.

Develop was awarded work valued at around A$400 million ($280 million) at Bellevue Gold’s Bellevue Gold Mine in Western Australia back in April. The contract, which covers a period of almost four years, provides for Develop’s Underground Services division to undertake construction, development and production activities at the underground mine.

The autonomous solutions are in line with Develop’s innovative business ethos of combining impressive technology with experienced professionals to transform operations into mining powerhouses, RCT said. This will see operators use the ControlMaster Automation Centre and manage a Sandvik LH517i underground loader within the underground complex.

In the future the company will roll out additional autonomous Sandvik LH517i loaders in line with its evolving mining fleet requirements as it moves into production activities.

To accommodate a larger autonomous fleet, Develop will harness the power of ControlMaster Multi-Machine Select (MMS) and Multi-Machine Control (MMC) capabilities into its Automation Centre, RCT says.

These features mean machine operators can switch between underground loaders located throughout the mine and subsequently take control of each machine.

Develop will further support the Bellevue fleet by rolling out RCT Connect, which, RCT says, is the only available mining communications infrastructure designed to accommodate autonomous mining equipment.

The specialised Wi-Fi network will ensure consistent communications and very low machine latency between the machine fleet and Automation Centre, according to RCT.

RCT’s Kalgoorlie Branch Manager, Rick Radcliffe, said the work at Bellevue will provide a strong foundation on which to grow a business relationship between the two companies.

“We are very pleased to be Develop’s automation technology supplier and provide cutting-edge solutions and a very high level of service from the beginning at Bellevue,” he said. “We will be there alongside Develop as they kick off autonomous machine activities and we are confident that our technology will deliver results every shift.

“RCT proudly has 50 years of experience supporting Goldfield’s mining companies and we look forward to applying all our knowledge to whatever situation Develop faces in the future.”

GR Engineering locks in 1 Mt/y processing plant build for Bellevue Gold

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GR Engineering Services Limited, following a preliminary works agreement signed in May, has entered into a contract with Golden Spur Resources Pty Ltd, a wholly-owned subsidiary of Bellevue Gold Limited for the engineering, procurement and construction (EPC) works in relation to the 1 Mt/y gold processing plant and associated infrastructure for the Bellevue gold project in Western Australia.

Bellevue is forecasting production of 200,000 oz/y during years one to five at an all-in sustaining cost of A$922/oz ($653/oz) at its operation.

The contract sum for the EPC contract is A$87.8 million ($60.7 million).

Bellevue Gold said the award of the contract was particularly important because it further insulates Bellevue against rising costs.

“The EPC contract is the last of the large capital expenditure items on the pathway to production, meaning 90% of the project’s pre-production expenditure is locked in either via contracts or tenders (79% under contract and 11% under advanced tender),” it said.

As part of the preliminary works agreement, GR Engineering had already commenced work on the project. This involved design engineering services and ordering of long lead and design critical path equipment including the ball mill, crushing equipment, screens, agitators, leach and tailings thickeners, prior to entering into the now-signed EPC contract.

Geoff Jones, GR Engineering Managing Director, said: “GR Engineering is pleased to continue its involvement on this exciting gold project. Our clients are increasingly seeking certainty and a track record of performance and GR Engineering has been able to demonstrate this to Bellevue, including by reference to its strong track record of successful project outcomes in the Western Australian gold sector.”

Bellevue said the design criteria incorporates sufficient headroom to support an increase in throughput to 1.2 Mt/y with no additional capital required across the entire plant.

“Further expansions beyond 1.2 Mt per annum can be achieved for a low level of additional capital,” it added.

Bellevue Gold is looking to become one of lowest emitting gold mines in Australia, with a forecasted greenhouse gas intensity of 0.202 t CO2e/oz, with planned integration of renewable energy.

The design for the processing plant also follows this philosophy, with the design of the crushing circuit optimised to maximise renewable energy usage by incorporating higher throughput rates, enabling its use to rise and fall in line the availability of renewable energy while not restricting overall throughput, the company said.

“By optimising the power demand curve to better align with key daytime and night-time energy peaks and troughs in the generation of power from renewable energy sources, it will create the optionality for the crushing circuit to maximise crushing in peak renewable energy generation periods,” Bellevue said. “This will have the potential to offset more than 1 MW in demand on thermal power generation.”

Develop to bolster contract mining capacity with Premium Group acquisition

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As Develop starts underground work at Bellevue Gold’s Bellevue Mine in Western Australia, it is bolstering its contract mining resources through a planned acquisition of Premium Group.

The Premium Group is a well-established provider of specialist mining personnel and equipment to the underground mining industry, according to Develop.

The two parties have entered into a letter of intent (LOI) pursuant to which Develop has agreed to acquire Premium Mining & Civil Pty Ltd and Premium Mining Personnel Pty Ltd (together, the Premium Group) for total consideration of A$7.46 ($5.3 million) million less net debt, to be satisfied by A$300,000 in cash and the balance in Develop shares.

Subject to shareholder and regulatory approvals, Develop said the acquisition would bolster its capabilities in providing underground expertise and equipment, while helping it achieve its goals as a mine owner/developer and “mining services business partner”.

Meanwhile at Bellevue Gold the company said it had started underground work at the Bellevue Mine, in line with the terms of the agreement signed last month (pictured).

Under the contract, Develop’s Underground Services division will undertake construction, development and production activities at the underground mine as part of an agreement valued at circa-A$400 million.

On this milestone, Develop Managing Director, Bill Beament, said: “We have established a world-class team of highly experienced underground mining specialists. Our team includes leading managers in their respective areas and an enviable group of underground mining and maintenance personnel, backed up by the latest mobile equipment.

“Our people, combined with the outstanding management team at Bellevue, will ensure we maximise the huge opportunity offered by the high-grade Bellevue orebody.”

Last week, Develop announced it had completed its acquisition of the Woodlawn zinc-copper mine in New South Wales, bringing with it an underground mine and new processing plant/site infrastructure.

Bellevue Gold tasks GR Engineering with process plant build

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Bellevue Gold Limited has awarded GR Engineering Services Limited engineering, procurement and construction (EPC) work related to the 1 Mt/y gold processing plant and associated infrastructure for its namesake project in Western Australia.

GR Engineering will immediately commence design engineering services and ordering of long lead and design critical path equipment including the ball mill, crushing equipment, screens, agitators, leach and tailings thickeners, prior to entering into a formal EPC contract.

Geoff Jones, Managing Director, said: “GR Engineering is pleased to be working with the Bellevue team on this exciting gold project. This project further enhances GR Engineering’s reputation as the leading gold EPC contractor in Australia.”

Bellevue Managing Director, Steve Parsons, said GR Engineering knew the project well from its work during the study phase.

“Commencing manufacturing of these long-lead critical components of our 1 Mt/y processing plant de-risks the construction schedule and puts Bellevue on the pathway to first gold in the second half of 2023.

“The appetite among leading contractors and suppliers to be involved with our project speaks volumes about its strong future.”

Bellevue is forecasting production of 200,000 oz/y during years one to five at an all-in sustaining cost of A$922/oz ($653/oz) at its operation.