BMG Accelerates Abercromby Drilling to Boost 518,000oz Gold Resource
BMG Resources is ramping up its drilling efforts at the Abercromby Gold Project with assays from Phase 1 drilling imminent, aiming to expand its existing 518,000oz gold resource. Concurrently, a new drilling program is planned for the nearby Bullabulling Project following a major regional acquisition.
- Phase 1 drilling at Abercromby completed with assays pending
- Phase 2 drilling set to commence March 2025 targeting resource expansion
- Abercromby Mineral Resource Estimate stands at 518,000oz Au
- New Bullabulling drilling program planned near recently acquired gold mine
- High-grade gold mineralisation confirmed in initial Abercromby drill cores
Abercromby Drilling Update
BMG Resources (ASX: BMG) has provided a detailed update on its exploration activities at the Abercromby Gold Project in Western Australia's prolific Goldfields region. The company recently completed a Phase 1 diamond drilling campaign totaling over 1,000 metres, with assays expected imminently following a short delay due to holiday season logistics. Visual inspection of drill cores revealed strong alteration and quartz veining typical of high-grade gold mineralisation, raising expectations for positive assay results.
The Abercromby project currently holds a JORC-compliant Mineral Resource Estimate (MRE) of 11.12 million tonnes at 1.45 g/t gold, equating to 518,000 ounces. This resource remains open at depth and along strike, providing significant upside potential. The Phase 2 drilling program, scheduled to begin in March 2025, aims to test extensions of the Capital Deposit and convert inferred resources into the indicated category to support future production studies.
Strategic Expansion and Regional Targets
Beyond the Capital Deposit, BMG plans to deploy reverse circulation drilling to explore highly prospective regional targets along a one-kilometre corridor south of the deposit, including the Capital South, Archer, and Barrack prospects. These areas have already demonstrated the presence of a large, high-grade gold system through shallow reconnaissance aircore drilling, suggesting potential for new discoveries that could materially increase the project's resource base.
John Prineas, BMG’s Non-Executive Chairman, emphasised the significance of the upcoming assay results, noting their potential to materially expand the resource footprint and improve resource confidence. He also highlighted the company’s proactive measures to prevent future logistical delays in drill core processing.
Bullabulling Project: New Opportunities Near Major Acquisition
In parallel, BMG is designing a new drilling program for its 100%-owned Bullabulling Project, located just 1.5 kilometres from the Bullabulling Gold Mine recently acquired by Minerals 260 Limited (ASX: Mi6) for A$166.5 million. The proximity to this significant transaction underscores the strategic value of BMG’s landholding in a region awakening as a multi-million-ounce gold field.
Early-stage drilling at Bullabulling has already intersected encouraging near-surface high-grade gold mineralisation, with historical and recent results including intercepts such as 5m at 2.5 g/t Au and 2m at 18.1 g/t Au. The upcoming drill program, slated for Q1 2025, aims to build on these promising results and further delineate the gold potential of the project.
Outlook and Market Context
Abercromby’s free-milling gold mineralisation, confirmed by metallurgical testwork with high recovery rates of 93-95%, positions the project well for potential commercial development. The combination of a substantial existing resource, ongoing exploration success, and proximity to infrastructure enhances BMG’s prospects in the competitive WA gold sector.
As BMG advances its drilling programs, the market will be watching closely for assay results that could reshape the company’s resource profile and development trajectory. The company’s strategic positioning near major gold assets and its methodical approach to resource expansion underscore its potential to emerge as a significant player in the region.
Bottom Line?
With assays imminent and a robust Phase 2 program underway, BMG is poised to redefine its gold resource potential in a rapidly evolving WA goldfield.
Questions in the middle?
- Will Phase 1 assay results confirm significant resource expansion at Abercromby?
- How will Phase 2 drilling outcomes impact the classification and size of the mineral resource?
- What strategic moves might BMG make following the Bullabulling drilling program near the major Mi6 acquisition?
