Bellevue Gold’s maiden indicated resource expectations grow: Canaccord Genuity

Bellevue Gold Ltd's (ASX:BGL) recent infill drilling at its namesake project in WA returned up to 1-metre at 1,169 g/t gold from 100 metres with the likelihood of boosting a mid-year resource upgrade at the project.

While the 1-metre result was returned from Bellevue North, one of the peripheral lodes, there were also a host of ‘exceptional' results from the Deacon lode, which accounts for 41,000 ounces at 12.3 g/t gold of the 2.2-million-ounce inferred resource.

Canaccord Genuity reiterated its SPEC BUY rating for Bellevue after reviewing the new high-grade hits. The broker has a target price of $1.35 per share (current price: 85 cents).

The following is an extract from Canaccord's research update:

*Deacon infill results confirm its development merit, *in our view. Infill drilling at Deacon (Inferred Resource of 410koz at 12.3g/t) confirms the lode as a repeat of the historic Bellevue mine. Best results from the Central Area infill program (now drilled on 40m centres) include:

· 5.3m at 54.5 g/t gold from 650.9m
· 1.5m at 168.8 g/t gold from 651.7m including 0.5m at 499.1 g/t gold
· 2.5m at 49.2 g/t gold from 527.8m • 10.3m at 10.7 g/t gold from 566.9m
· 4.3m at 9.1 g/t gold from 701.9m • 2.6m at 10.0 g/t gold from 626.0m
· 1.64m at 48.0 g/t gold from 640.0m • 3.3m at 22.5 g/t gold from 618.1m