We can go it alone on Bellevue development: Parsons

Bellevue Gold boss Steve Parsons has played down speculation his company’s namesake gold project is in the crosshairs of some of Western Australia's most prominent gold miners, saying he is focused on bringing the high grade mine into development.

The Bellevue gold mine near Leinster contains 2.3 million ounces of resources at more than 10 grams per tonne, with industry watchers speculating its grade and location could make Bellevue a key takeover target for Northern Star Resources or mid-tiers like Silver Lake Resources and Ramelius Resources.

Mr Parsons said on the margins of the Diggers & Dealers mining forum yesterday he had no doubt some companies would be interested in the project, but said Bellevue had the funds and backing to progress it to development on its own.

“We have the second highest grade ore body in Australia outside of Kirkland Lake’s Swan Zone over Fosterville,” he said.

“So I’m sure lots of people would be looking at us and would love to own an archaean lode gold system that when they operate they go for decades … so I’m sure lots of people would probably be looking at it. However, we have the funds as we just talked about, the $150 million to get us through to development.That for us is our key focus and we expect to be one of the next gold mining companies in Western Australia.”

Bellevue is one of a number of junior explorers whose discovery success in an historically strong market has sent their stock price soaring.

Shares in the company have more than doubled in value in the past six months to $1.23 a piece, sending its market capitalisation beyond $1 billion.

That may well turn suitors off, but Mr Parsons said Bellevue’s Western Australian postcode and grade backed its lofty share price.

“I think that probably goes back to that good quality projects should be valued appropriately,” he said.

“If you’ve got a poor project in a difficult jurisdiction then obviously valuation is going to be different on that. The really good discoveries that are out there at the moment I’m sure lots of companies are looking at them.”