The Bellevue Gold Ltd (ASX: BGL) share price is edging lower despite the company providing a positive resource update prior to the market open. At the time of writing, Bellevue shares are trading 0.57% lower at 87.5 cents.
The company's shares did open higher this morning and reached an intraday high of 91 cents before retreating to their current level.
For comparison, the S&P/ASX 300 Index (ASX: XKO) is currently trading 0.13% lower for the day so far.
Let's take a look at what the company announced.
Bellevue Gold share price sinks despite increased resources
Bellevue this morning reported an increased Maiden Resource as part of its Bellevue Gold Project in Western Australia. The company reported a Marceline discovery of 310,000 ounces at 9.7 grams per tonne of gold. That includes indicated resources of 130,000 ounces at 10.1 grams per tonne of gold.
The Marceline Resource will form part of the stage two feasibility study currently underway as part of the project. Bellevue said it will accelerate the Marceline drilling program on the back of the strong results.
Both Marceline and the neighbouring Deacon North sit in the upper levels of the mine plan. That reportedly means their inclusion in the feasibility study could be good for the Bellevue Gold Project.
Bellevue managing director Steve Parsons said this could increase the project's production, mine life and overall returns. "These newly discovered resources have the potential to have a positive impact on the project's economics, due to their location sitting closer to the surface", he said.
The Bellevue share price jumped higher in early trade before paring back those gains following the announcement.
Bellevue's Global Resource has increased to 2.7 million ounces at 9.9 grams per tonne as a result of the update. Global Indicated Resources have climbed to 1.2 million ounces at 11.0 grams per tonne of gold.
Foolish takeaway
The Bellevue Gold share price is up and down in today's session on the back of the miner's upgraded resource estimate and plans for an accelerated drilling program at its site.
