Bellevue Gold has an increase in its inferred resource of 23%, to 6.1mt at 11.3g/t for 2.2m ounces of gold following a maiden resource from the Deacon lode.
Macquarie assesses, after a $26.5m capital raising, the company is well funded to continue exploring. A desktop study showed the potential for open pit mining on the Bellevue and Tribune lodes which would then lead to underground development.
Macquarie retains an Outperform rating and $0.90 target.
Sector: Materials.
Target price is $0.90.Current Price is $0.61. Difference: $0.29 – (brackets indicate current price is over target). If BGL meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges – negative figures indicate an expected loss).
