BMG Targets 518,000 oz Gold Expansion at Abercromby; Bullabulling Drilling Set for Q1
BMG Resources pushes forward with expansion drilling at its Abercromby and Bullabulling gold projects in Western Australia, supported by a recent $1.5 million capital raise. The company navigates regulatory caution by retracting prior production targets while maintaining a focus on resource growth.
- Expansion drilling underway at Abercromby to grow 518,000 oz gold resource
- Bullabulling project shows promising near-surface high-grade gold intercepts
- Scoping study production targets retracted following ASX regulatory guidance
- Successful $1.5 million capital raising completed in late 2024
- Upcoming assay results and further drilling planned for Q1 2025
Abercromby Gold Project: Focused on Resource Expansion
BMG Resources Limited (ASX: BMG) continues to advance its 100%-owned Abercromby Gold Project, located on a granted mining lease in Western Australia’s established mining region. The company has initiated an expansion drilling program aimed at increasing the existing Mineral Resource Estimate of 518,000 ounces of gold, derived from 11.12 million tonnes at 1.45 g/t Au.
In December 2024, BMG completed 1,076 metres of diamond drilling targeting extensions at depth and along strike of the high-grade Capital Deposit’s southern section. Visual signs of strong alteration and quartz veining typical of Abercromby’s mineralisation were observed, with assay results expected by mid-February 2025. These results will be critical in confirming the presence and grade of gold mineralisation and in converting inferred resources to the indicated category.
Regulatory Compliance and Scoping Study Adjustments
Following consultation with the ASX, BMG retracted forward-looking production targets and financial forecasts previously outlined in its October 2024 Scoping Study. This decision was driven by the high proportion of inferred resources within the production target, which under ASX Guidance Note 31, does not provide a reasonable basis for such forward-looking statements. The company emphasized that other material assumptions in the study remain unchanged and plans extensive infill drilling to upgrade resource classifications and potentially revise the scoping study.
Bullabulling Gold Project: Capitalising on Regional Momentum
BMG’s Bullabulling Project, also 100% owned, lies approximately 1.5 kilometres from the historic Bullabulling Gold Mine, recently acquired by Minerals 260 Limited (ASX: Mi6) for A$166.5 million in cash and shares. This acquisition is expected to rejuvenate exploration interest in the Coolgardie region, where BMG’s project is situated.
Exploration at Bullabulling has revealed extensive near-surface high-grade gold through both historical and recent drilling, with intercepts including 2 metres at 18.1 g/t Au and 1 metre at 10.6 g/t Au. BMG is designing a gold-focused drilling program for Q1 2025 to further delineate this potential, leveraging the region’s robust infrastructure and mining heritage.
Financial Position and Corporate Developments
In November 2024, BMG successfully raised $1.5 million through a placement of 150 million new shares at $0.01 each, with shareholder approval secured in December. This capital injection supports ongoing exploration and development activities across its projects. The company ended the quarter with approximately $1.18 million in cash and anticipates around 3.6 quarters of funding based on current expenditure levels.
Additionally, BMG exited its Treasure Joint Venture in Cyprus during the quarter, selling its remaining interest for a nominal amount, reflecting a strategic focus on its Australian gold assets.
Looking Ahead
BMG’s near-term catalysts include the release of assay results from Abercromby’s December drilling and the commencement of further drilling campaigns at both Abercromby and Bullabulling in Q1 2025. These activities will be pivotal in refining resource estimates and advancing the projects toward potential production scenarios.
Bottom Line?
As BMG navigates regulatory scrutiny and advances drilling programs, the coming months will be crucial in validating its resource growth ambitions and shaping investor confidence.
Questions in the middle?
- Will the upcoming assay results at Abercromby confirm significant extensions of high-grade gold mineralisation?
- How will BMG’s retraction of production targets affect market perception and valuation?
- What exploration strategies will BMG deploy at Bullabulling to capitalize on the neighbouring mine acquisition momentum?