BMG Resources has firmed up its belief in a substantial gold system at its Abercromby gold project in Western Australia’s Mid West region, after receiving broad mineralised hits from the first phase of a recently completed diamond drilling program.
The program targeted the southern extensions of the project’s Capital Deposit and intersected alteration zones and grades that reaffirm the company’s exploration model and provide strong encouragement for future growth in the resource base.
The latest drilling results returned intercepts such as 46.34 metres at 0.38 grams per tonne (g/t) gold from 116m in hole 24ABDD003, 8m at 1.27g/t from 304m in hole 24ABDD002, and 1m at 9.17g/t from 404m in hole 24ABDD001. Importantly, these results sit within broader zones of gold-associated alteration. While narrower than previous thick high-grade intercepts at the project, the hits are highly supportive of the company’s interpretation of a large mineralised system open in multiple directions.
Earlier phases of drilling at Abercromby yielded much higher grades and thicker intervals, such as 77m at 2.66g/t, 26m at 6.07g/t, 30m at 10.01g/t and 10m at 11.71g/t.
The maiden mineral resource estimate for Abercromby stands at 11.12 million tonnes grading 1.45g/t gold for 518,000 ounces – a figure BMG sees as just the beginning, given that only 1.2 kilometres of the 6km strike length has been systematically drilled.
The project is on a granted mining lease and features free-milling gold with high recoveries of up to 95 per cent from carbon-in-leach processing.
A recent memorandum of understanding signed with Wiluna Mining Corporation for toll treatment of ore at the nearby Matilda processing plant adds further weight to the project’s development credentials. Scoping studies are underway to assess the optimal mining strategy, with a low-capex, fast-tracked production scenario being evaluated.
Beyond Abercromby, BMG is also drilling at its Bullabulling gold project near Coolgardie, targeting several shallow, high-grade intercepts, including 2m at 18.1g/t, 4m at 10.12g/t and 12m at 2.3g/t gold. The Bullabulling tenure is adjacent to a 2.3-million-ounce gold resource now held by Tim Goyder’s Minerals 260 Limited following a $166.5 million acquisition.
Meanwhile, BMG is building early momentum at its Dragon project in the West Arunta region near the Northern Territory border, a district now famed for the world-class Luni niobium discovery made by WA1 Resources. BMG’s landholding spans 1470 square kilometres and shows multiple targets with coincident structural, magnetic and gravity features analogous to known mineralised carbonatites in the region.
As global demand for critical minerals such as niobium and rare earths accelerates, Dragon places BMG in a prime position to benefit from the shift towards energy transition and supply chain diversification. Add an expanding gold system at Abercrombie, and there looks to be plenty ahead to watch out for with this WA-focused exploration junior.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Bill McConnell
