BMG Resources advances its gold exploration with ongoing drilling at Abercromby, promising near-surface high-grade results at Bullabulling, and strategic positioning near producing mines at Invincible.
- Abercromby hosts a maiden mineral resource of 518,000 ounces gold with expansion drilling underway
- Bullabulling project confirms near-surface high-grade gold adjacent to newly acquired Bullabulling Gold Mine
- Invincible project strategically located near Warrawoona Gold Mine with heritage agreements in place for drilling
- Abercromby scoping study targets low-capex, fast payback mining scenario
- Company reports $721,000 cash balance with ongoing funding discussions
Abercromby: Building on a Solid Gold Foundation
BMG Resources Limited (ASX: BMG) has reported steady progress at its flagship Abercromby Gold Project, located on granted mining leases in Western Australia. The project boasts a maiden JORC-compliant Mineral Resource Estimate (MRE) of 11.12 million tonnes at 1.45 grams per tonne gold, equating to 518,000 ounces. This resource remains open at depth and along strike, with ongoing Phase 2 drilling programs designed to expand the known mineralisation footprint.
Recent diamond drilling completed in December 2024 comprised three holes totaling 1,076 metres, with assays pending. The company is also advancing a scoping study focused on a low-capital expenditure, rapid payback mining scenario targeting the high-grade, free-milling gold at Abercromby. Metallurgical testwork confirms excellent gold recoveries of 93-95% via conventional carbon-in-leach processing, underscoring the project’s commercial potential.
Bullabulling: High-Grade Gold Next Door
BMG’s Bullabulling Project, situated in the prolific Coolgardie gold district, benefits from its proximity to the recently acquired Bullabulling Gold Mine, now owned by Minerals 260 Limited following a A$166.5 million deal. The Bullabulling Gold Mine hosts a multi-million ounce resource, and BMG’s adjacent tenements share the same prospective mafic-ultramafic stratigraphy.
Reconnaissance drilling at Bullabulling North has yielded encouraging near-surface high-grade gold intercepts, including standout results such as 2 metres at 18.1 g/t Au and 4 metres at 10.2 g/t Au. These findings validate the potential for significant mineralisation and have prompted plans for a focused drilling campaign in Q2 2025 to delineate these discoveries further.
Invincible: Strategic Positioning in the Pilbara
The Invincible Gold Project, 100% owned by BMG, lies immediately adjacent to the Warrawoona Gold Mine, recently acquired by the Creasy Group for over A$148 million. This project covers 12 kilometres of the Warrawoona Shear Zone, which hosts the 1.5 million ounce Klondyke deposit underpinning the mine.
Historical workings at Invincible have recorded exceptionally high grades, including artisanal mining at 1,600.85 g/t Au. BMG has secured a heritage agreement with the Nyamal Aboriginal Corporation, clearing the way for drilling to commence pending a heritage survey. The company is preparing a drill program to test multiple gold targets along this highly prospective shear zone.
Financial Position and Outlook
For the quarter ended 31 March 2025, BMG reported cash outflows from operating and investing activities, with a closing cash balance of $721,000. The company is actively engaged in discussions with brokers and potential investors to raise additional funds, supported by expressions of interest in the Abercromby Project. Management remains confident in securing the necessary capital to advance its portfolio of gold projects through 2025.
Related party payments to directors totaled $26,840 during the quarter, reflecting standard remuneration and statutory obligations.
Strategic Implications
BMG’s exploration strategy leverages its ownership of strategically located gold projects adjacent to significant producing mines and recently acquired assets. The combination of a solid maiden resource at Abercromby, promising high-grade discoveries at Bullabulling, and the prospective Invincible tenure positions BMG as a compelling junior gold explorer with multiple avenues for growth and value creation.
Bottom Line?
BMG’s next steps hinge on assay results and funding success, with the potential to unlock significant value from its strategically positioned gold assets.
Questions in the middle?
- When will the pending assay results from Abercromby’s Phase 1 drilling be released, and how might they impact the resource estimate?
- What are the detailed plans and timelines for the upcoming Bullabulling drilling campaign, and could it lead to a resource upgrade?
- How soon can drilling commence at Invincible following heritage survey completion, and what targets will be prioritised?