Guess which ASX gold stock is edging higher today on drilling news

The miner has delivered first ore from its Deacon North underground mine.

ASX gold stock Bellevue Gold Ltd (ASX: BGL) pushed higher on Tuesday after the ASX miner released another encouraging operational update.

During afternoon trade, Bellevue Gold shares climbed 2.5% to $1.55.

The rally continues an impressive run for shareholders. The ASX gold stock is now up roughly 75% over the past 12 months. By comparison, the S&P/ASX 200 Index (ASX: XJO) has gained just 3% over the same period.

So, what exactly did the ASX gold stock announce?

Happy miner giving ok sign in front of a mine.

Image source: Getty Images

High-grade ore source

Bellevue Gold revealed that it has delivered first ore from the Deacon North underground mine at its Bellevue Gold Project in Western Australia.

Importantly, management of the ASX gold stock said the milestone was achieved on schedule. That matters because Deacon North has the potential to become a major high-grade ore source for the company as production ramps up through FY26 and FY27.

The company also confirmed that all major mining areas at the Bellevue Gold Mine are now in production. Mining operations at Deacon Main and Viago are already established and tracking in line with FY26 guidance.

Management said growing ore contributions from Deacon Main, Viago, and now Deacon North are expected to drive production growth across the next two financial years.

Operational setbacks, cost pressures

Investors appear to like what they are seeing.

The market has been watching the ASX gold stock closely, following earlier operational setbacks and cost pressures. Hitting key development milestones on time could help rebuild investor confidence in the company's execution capabilities.

Higher-grade ore production is also critical. If Bellevue can successfully increase access to high-grade material, it could help lift gold production, improve margins, lower unit costs, and strengthen free cash flow.

Electromagnetic surveys for next phase drilling

The ASX gold stock also flagged more exploration activity ahead.

Bellevue Gold said it has completed the first surface drilling program, while a second phase drilling program is already underway. The company expects that work to continue through the June quarter and into FY27.

At the same time, downhole electromagnetic surveys are beginning to refine exploration targeting and support the next phase of drilling activity.

Management also revealed that it expects a sixth underground diamond rig to arrive on site during the June 2026 quarter. The rig will then begin underground exploration drilling in FY27.

What next for the ASX gold stock?

Today's announcement builds on Bellevue Gold's stronger March quarter update released last month.

During the quarter, the company produced 40,745 ounces of gold while lowering costs and generating a record underlying free cash flow of roughly $158 million.

Management of the ASX gold stock also reaffirmed FY26 guidance, which was another positive sign for investors looking for greater operational consistency.

Gold prices remain near historically elevated levels, which is also helping sentiment toward ASX gold shares more broadly.

For Bellevue Gold, however, the focus increasingly appears to be shifting toward operational delivery. And right now, the market seems pleased with the progress.

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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