BMG launches big drill push to bulk up Wiluna gold project

BMG Resources is set to kick off a major 10,000m diamond drilling resource expansion program this month at its fully-owned Abercromby gold project, 30km southeast of Wiluna in WA’s eastern goldfields, in the Agnew-Wiluna greenstone belt.

The program is primarily aimed at expanding and upgrading the existing 518,000-ounce gold resource estimate at the project and will be the first significant drilling at the project since the definition of the maiden resource estimate in 2023, which was delivered at the remarkably low discovery cost of about $8.35 per ounce.

The main focus of the drilling will be to extend the strike and probe down-dip extensions of high-grade lodes within its Capital Deposit, which currently remains open in multiple directions.

The top three standout intercepts from previous drilling in the focus area included 57.5 metres assaying 5.73 grams per tonne (g/t) gold from 80m depth, 30m going 10.01g/t gold from 164m and 77m at 2.66g/t gold from 116m.

Those intercepts have highlighted the potential for significant resource growth within a structurally controlled, ductile-style gold system, hosted in a complex mafic rock package between major shear zones and where grades appear to strengthen with depth.

The geology is starting to look eerily like a playbook of Ramelius Resources-owned 2.1-million-ounce Never Never gold deposit at Dalgaranga in WA’s Murchison region - a resemblance that turns the spotlight firmly onto the potential for lookalike, high-grade gold lurking within similar ductile systems.

BMG Resources chief executive officer Ben Pollard said: “Abercromby is a gold project with a defined Mineral Resource and clear scope for further growth through drilling. The upcoming drill program is focused on extending established high-grade lodes within the Capital Deposit, where the Mineral Resource remains open at depth and along strike. The project is located on a granted Mining Lease and is situated within trucking distance of operating processing facilities, which supports ongoing assessment of potential development pathways.

The drill rigs will initially focus on the southeastern portion of the current resource envelope, before testing regional targets a short distance south of the Capital Deposit, including the Capital South, Archer and Barrack prospects. 

The alignment of those prospects has created a one-kilometre-long corridor of prospective stratigraphy, where previous aircore drilling has already confirmed extensions of the high-grade Capital Deposit.

Contractor DDH1 Drilling has been re-engaged for the upcoming campaign, with rig now on the move and drilling slated to kick off later this month. Results from the program are expected to feed directly into future mine planning, lifting confidence and paving the way for a resource upgrade. A scoping study assessing open-pit and underground scenarios is also being finalised, with release targeted this quarter.

Adding to Abercromby’s credentials, the project sits on granted tenure in an established WA gold district with good basic infrastructure and free-milling ore, delivering 93–95 per cent recoveries through conventional carbon-in-leach (CIL) processing.

Another key benefit is the project’s near-surface mineralisation, which could enable open-pit mining and, down the track, potential ready access to higher-grade underground mineralisation.

With one eye on near-term production, BMG signed a memorandum of understanding (MoU) with Wiluna Mining Corporation to investigate toll treating its ore at the nearby Matilda carbon-in-leach plant.

That option could prove a game-changer. Instead of bearing the hefty cost and long lead times of building its own mill, BMG could potentially truck ore to an existing operation, slash upfront capital requirements and fast-track first gold. 

With Abercromby sitting within practical haulage distance of established infrastructure, the MoU provides a realistic and capital-light pathway that could dovetail neatly with any future mining scenario.

The current Abercromby resource sits at 11.12 million tonnes grading 1.45g/t gold for 518,000 ounces of gold. Of that, 4.15Mt at 1.23g/t gold is in the indicated category for 165,000 ounces, while 6.97Mt grading 1.58g/t for 353,000 ounces lies in the inferred class. 

Fully-funded and drill-ready, BMG is primed to unlock further value at Abercromby in a high gold price environment, building on a solid resource base and clear development advantages. 

With the 10,000m program kicking off soon and a scoping study on the near horizon, 2026 is shaping up as a pivotal year for resource growth and potential production pathways.

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