Bellevue Gold (ASX:BGL) approved the construction of a new 120 cubic meters per hour paste plant for the Deacon and Deacon North mining areas, according to a Tuesday filing with the Australian bourse.

The construction cost, expected at around AU$35 million to AU$40 million, will be financed from operational cash flows and will not impact fiscal 2026 production guidance, the filing said.

The company revised its fiscal 2026 capital expenditure outlook to AU$105 million to AU$115 million from the prior range of AU$80 million to AU$90 million, citing the paste plant construction.

Bellevue's cash and gold balances rose by around AU$5 million in January to AU$170 million after reducing outstanding forward sale commitments and paying December quarterly royalties, per the filing.

The company is currently free from mandatory forward sale commitments until September 2026, it added.

Shares dropped around 1% in recent trading on Tuesday.