BMG Resources is poised to ramp up drilling at its Abercromby gold project near Wiluna in Western Australia, with phase one results expected any day and phase two drilling scheduled to begin next month.
With the first-round results from December’s 1076-metre diamond drilling campaign expected imminently, BMG is confident visual observations suggest its existing 518,000-ounce gold resource at the project is set to grow.
The company’s first batch of drill core samples experienced unexpected delays during the Christmas/New Year period, which slowed the cutting and sampling processes. Management says it has new streamlined protocols in place.
The three diamond drill holes completed in December focused on the southern part of the company’s Capital deposit - an area that has already delivered exceptional gold intercepts including 77m at 2.66 grams per tonne (g/t) gold from 116m, 26m assaying 6.07g/t gold from 192m and 10m running 11.71g/t gold from 295m. Another 30m intercept yielded an impressive 10.01g/t gold from 164m.
While strong alteration and quartz veining was observed in the latest drill holes -features typical of high-grade gold systems at Abercromby - the final assay results will be crucial in confirming the presence and extensions of mineralisation.
To fast-track results, BMG says it has secured a priority service agreement with its laboratory provider, with assays expected within two weeks of sample submission.
The company confirmed it is still locked in for phase two drilling, set to kick off in March. It says the second round of drilling will target new high-grade gold zones along strike and at depth while also testing regional targets along its highly prospective 1-kilometre gold corridor.
BMG Resources non-executive chairman John Prineas said: “The results have the potential to materially expand the known resource footprint and also convert inferred resources to the higher confidence indicated category. The company is also excited by the recent acquisition of the Bullabulling gold mine, located only 1.5km away from BMG’s Bullabulling project, for over $150 million by Mi6.”
BMG’s Abercromby project sits on two granted mining leases within an established mining region with access to road and power infrastructure. It is also close to several producing gold mines.
The company says only a small part of the overall 6km-long mineralised structure has been tested to date and it sees potential in both directions along strike.
Post the second phase of drilling, BMG expects to expand and upgrade its maiden resource which currently sits at 518,000 ounces grading 1.45g/t gold. This includes high-grade zones measuring up to 5.94g/t gold.
Previous air core drilling at the Capital South, Archer and Barrack prospects has revealed the presence of a large high-grade gold system.
The new drilling campaign marks a key step in BMG’s strategy to progress the scale and commercial feasibility of the Abercromby gold project.
Beyond Abercromby, BMG is advancing plans for a new drill program at its latest Bullabulling gold project, 1.5km from the Bullabulling gold mine, which was recently acquired by Minerals 260 for $166.5m.
BMG’s upcoming program is also scheduled to kick off this quarter following up on encouraging early-stage shallow gold discoveries, including a 5m hit running 2.5g/t gold from 36m and two 2m intercepts at 18.1g/t and 5.7g/t gold respectively
With the next phase of drilling at Abercromby ready to roll and exploration at Bullabulling also set to get underway in March, the company will no doubt be hoping to reap the benefits of what is the hottest gold market the ASX has seen in decades.
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By Andrew Todd
