BMG steps up high-grade WA gold pursuit

Things are moving fast for West Australian focused gold explorer, BMG Resources with diamond drilling at its Capital prospect near Wiluna intercepting multiple wide zones of alteration in lodes interpreted to host high-grade gold. Recent RC drilling at the prospect, located at the company’s Abercromby project, returned several eye-catching results including a scintillating 26 metre intercept grading 6.07 grams per tonne gold from 192m.

The 26m hit also took in a richer 7m interval going 21.22 g/t gold.

Other recent strikes from the RC campaign at Capital include 37m at 2.58 g/t gold from 144m, 12m at 7.02 g/t gold from 80m and 33m at 1.7 g/t gold from 127m.

A thick 56m hit going 1.51 g/t gold from 132m was also intercepted. The broad strike also included a handy 16m section grading 3.59 g/t gold.

According to the company, all RC holes drilled so far have intersected gold and confirm significant extensions of the known mineralisation at Capital.

Results from the RC drilling and BMG’s interpretation of diamond drill core come on the back of an ongoing 6,000m campaign at the prospect.

The company has so far drilled five diamond holes of nine holes planned at Capital and it has also smashed out 4,000m in RC drilling.

Management says the diamond drilling completed so far has intersected thick intervals of quartz-carbonate veining at the expected positioning of the targeted high-grade gold lodes.

BMG believes zones of intense alteration observed in the intercepts could represent potential extensions of the known gold lodes and validate its geological model at Capital.

The five diamond holes were drilled to complete previous RC holes terminated early due to water ingress.

BMG’s next four diamond holes are designed to test continuity of mineralisation up to 500m below surface.

Buoyed by the results so far, the company has added a 650m diamond hole to the campaign at Capital. The deep hole will probe for gold that could potentially be lurking beneath mineralisation identified at the prospect to date.

The remaining diamond holes are expected to be concluded by the end of January next year, with assays anticipated to start trickling in later this month.

BMG’s 100 per cent owned Abercromby sits on the revered Wiluna greenstone belt where more than 40 million ounces of gold have been delineated since discovery of the precious metal in the region in the late 1800s.

ASX-listed Bellevue Gold’s three million ounce namesake discovery grading a sensational 9.9 g/t gold lies less than 100km south along the same geological belt. First gold pour from an initial eight year mine at Bellevue is planned for 2023.

About 10km from Abercromby, ASX-listed Wiluna Mining has unearthed a resource of about 4.5 million ounces going a respectable 3.9 grams per tonne gold at its Wiluna Mining Centre project.

Global gold mining giants Northern Star and Goldfields Limited are also churning out gold from their mining operations in the region.

BMG is clearly amongst good company and its project, that has thrown up some jaw dropping gold hits drilled in the past, is also no slouch.

Historical hits at Abercromby include a sensational 57.5m intercept going 5.73 g/t gold from 80m and a sizeable 30m strike grading 10.01 g/t gold from 164m. Another 36m interval came in at 4.33 g/t gold from 100m.

Meanwhile, in the Pilbara region of Western Australia, BMG also has its hands on more tenure prospective for gold at its 100 per cent owned Invincible project.

According to the company, Invincible lies within the same stratigraphy and along strike to ASX-listed Calidus Resources’ 1.5 million ounce Warrawoona gold resource. It hosts numerous small-scale historical workings including the Invincible mine where more than 19kg of gold was produced in the past at a mind boggling 1,380 g/t gold.

BMG joins a cohort of players taking part in the modern-day gold rush in the Pilbara fuelled by De Grey Mining and its world-class Hemi “intrusive” discovery at its Mallina project. Following discovery early last year, De Grey’s share price soared from about $0.04 in January to reach as high as $1.60 by September 2020.

De Grey recently released a striking 192.4 million tonne maiden resource at Hemi grading 1.1 g/t gold for 6.8 million ounces of contained gold.

BMG plans to unleash the rig next year for a maiden drilling program at Invincible, the results from which will no doubt be highly anticipated by the market.

The company’s project portfolio also includes two exploration licence applications that makeup up its South Boddington gold project south-east of Perth in Western Australia.

The project sits along strike from Newmont Mining’s revered Boddington gold mine where an extraordinary 40 million ounces of the precious yellow metal have been defined. BMG’s landholdings lie within the Saddleback greenstone belt that also hosts Newmont’s monster deposit.

BMG has amassed three exciting exploration projects in some of the most richly endowed gold provinces in Australia. Its drilling at Abercromby has already thrown up several stellar gold strikes and if the high-grade gold assays continue to roll in, the Perth-based company could be in for very festive Xmas season.

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