BMG breathes more niobium-rare earths fire into Dragon

BMG Resources has applied for two additional exploration licences adjoining its granted Dragon project in Western Australia’s West Arunta region – an emerging world-class niobium-rare earths district.

The company says data reviews have identified several areas where strong magnetic features are located next to major faults, which can be interpreted as being highly-prospective for potential carbonatites and represents priority niobium-rare earths exploration targets.

The new ground will take the total area of BMG’s tenure to 1470 square kilometres adjacent to other successful explorers and includes a 30km stretch of its westernmost boundary being contiguous with WA1 Resources’ West Arunta project that recently unveiled its now-renowned Luni niobium-rare earths discovery.

BMG Resources non-executive chairman John Prineas said: “Exploration ground in the West Arunta is highly sought after following the significant Luni discovery by WA1 which has spectacularly propelled that company’s share price to more than $12 today. BMG has an outstanding opportunity to acquire a large holding adjacent to WA1’s project that we believe could provide our Company with a pathway to potentially replicate some of WA1’s success.”

Prineas said the geological features at Dragon had shown to be similar to the setting for Luni and other mineralised carbonatites in the region. He said several coincident structural and magnetic features considered “textbook signatures” for mineralised carbonatites had been identified across the project area.

WA1 revealed assay results last October that indicated a significant extension of high-grade mineralisation across the western portion of Luni, with a best niobium intersection to date of 31m at 4.6 per cent niobium pentoxide. Two months later the company unveiled another grab-bag of solid hits featuring a highlight 50m at 2 per cent niobium pentoxide from 65m to end-of-hole with 13m at 4.9 per cent niobium oxide from 65m.

The big hits have kept on coming this year and WA1 reached a share price high of $13.26 in January and now has a market cap of nearly $765 million.

Encounter Resources has also done some whale hunting nearby, announcing in March last year that it had modelled three priority geophysical targets at its Aileron project, 5km north-west of the Luni mineralised carbonatite discovery. In October, Encounter then confirmed it had identified niobium-rare earths carbonatites at West Arunta.

The company later revealed near-surface, high-grade niobium-rare earths mineralisation from its Emily target, with 12m at 2.3 per cent niobium pentoxide and 0.85 per cent total rare earth oxides (TREO) from 54m as part of a 130m hit at 0.7 per cent niobium pentoxide and 0.23 TREO from 50m to end-of-hole.

Since announcing its modelling, Encounter’s share price charged from 11.5c to a high of about 57c last July. The company’s discovery of its Crean deposit, with 282m at 0.54 per cent niobium pentoxide and 0.17 per cent TREO, is about 50km north of BMG’s new ground application.

Other companies in the immediate area and actively exploring include Rio Tinto in its own right and in a joint venture (JV) with Tali Resources, CGN Resources and MTM Critical Metals.

While historical exploration in the West Arunta region is limited, several State Government-generated geophysical surveys and published exploration reports by historical and current explorers exist, including by WA1 and Encounter.

BMG notes that where discoveries have been made, there appears to be a clear correlation of mineralised carbonatites with strong magnetic stratigraphy along major crustal structures.

It is now planning close-spaced, high-resolution geophysical surveys to better define its drill targets at Dragon, in addition to field mapping and geochemical outcrop sampling and soil geochemistry.

There is no doubt BMG is residing in a good address with good neighbours and the rotary ore detector will now provide the definitive answers.

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