BMG chases high-grade extensions to 518,000-ounce WA gold project

BMG Resources is turning the diamond bits at its 100 per cent-owned Abercromby gold project near Wiluna in Western Australia, as it hunts for high-grade extensions to its existing half-million-ounce gold resource. 

The company says reverse circulation pre-collars for the first seven holes of its phase one program have been completed to an average depth of 130 metres. The diamond drill rig has now moved in to finish the job, with plans to reach a total depth of up to 500 metres. 

The current 10,000-metre resource development drilling program is expected to run 24/7, with 1,100 metres already tucked away. BMG is specifically targeting the promising Capital deposit, which currently hosts a resource of 11.12 million tonnes at 1.45 grams per tonne (g/t) gold, equivalent to 518,000 ounces of gold.

Notably, the company says the Capital deposit remains open in all directions and is intent on identifying additional high-grade mineralisation both along strike to the north and south, and down-dip at depth. 

BMG’S geological model suggests the Capital deposit is a structurally controlled gold system, with grades appearing to increase at depth. Management believes the deposit shares characteristics with other major ductile gold systems in the region, such as the Never Never deposit. Recently acquired by Ramelius Resources, the project trumpets a high-grade resource of 7.5 million tonnes at 8.8g/t gold for 2.1 million ounces.

BMG Resources chief executive officer Ben Pollard said: “With drilling progressing well and the Abercromby Scoping Study imminent, BMG is pushing forward a pipeline of deliverables that will add value to our assets and for our shareholders.”

Beyond the drill rig, BMG is fast-tracking Abercromby towards a final investment decision. The project resides on a granted mining lease and benefits from being within trucking distance of established gold processing plants. 

In particular, the company has signed a memorandum of understanding with Wiluna Mining to investigate processing its ore at Wiluna’s Matilda carbon-in-leach plant, only a short 20Km from the Abercromby project. 

Previous metallurgical testing in 2023 handed the company a major win, confirming the gold to be free-milling across all zones, with outstanding recoveries of up to 95 per cent using conventional carbon-in-leach processing. 

Adding to the momentum, a near-complete scoping study is set to outline the economics of a potential mining operation at Abercromby, bringing the project one step closer to development. BMG plans to release the study results once it receives the initial assay results from the current round of drilling, which are expected in the next five weeks. 

In a move designed to reflect its dedicated focus on its home-state assets, BMG has also proposed changing its name to “WA Gold Limited.” Shareholders will vote on the new identity at a general meeting scheduled for April 15. 

BMG has kicked off a busy second quarter, firing up the diamond rigs as it looks to prove up the high-grade muscle of its Western Australian gold portfolio.

With a scoping study on the near horizon and a rebranding to "WA Gold" on the cards, BMG is fast-tracking its transition from explorer to developer.

All eyes will likely be on the core trays as the first assays roll in next month. If the numbers stack up, it may just pave the way for Abercromby’s existing 518,000-ounce resource to be transformed into a much bigger beast. 

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au