BMG Faces Scrutiny Over Abercromby Assay Timing—What It Means for Investors

Background to the Drill Program

BMG Resources Limited resumed drilling at its Abercromby Gold Project in December 2024, completing three diamond drill holes targeting the high-grade Capital Gold Deposit. Initial visual observations noted strong alteration and quartz veining typical of the mineralisation, but the company cautioned that assay results were necessary to confirm any significant gold intersections.

Delays and Discrepancies in Assay Processing

Despite expectations to receive assay results by early February 2025, BMG encountered delays in cutting and sampling the drill core, compounded by the use of new third-party contractors. The first samples were only submitted to the laboratory in late February and April, with preliminary assay results arriving in March and May. These preliminary results revealed material inconsistencies compared to historical drilling data, particularly in drill hole 24ABDD003, which returned unexpectedly lower gold grades.

Re-assaying and Disclosure Decisions

Concerned about the discrepancies, BMG prudently commissioned re-assaying at a second laboratory, receiving final assay data in July 2025. The company’s technical team confirmed that the final assays largely aligned with the preliminary data, ruling out errors in the initial results. BMG withheld public disclosure of the preliminary assays until the final confirmation to avoid misleading the market, citing Listing Rule 3.1A exceptions for incomplete and insufficiently definite information.

Regulatory Scrutiny and Compliance

The ASX issued an Aware Letter seeking clarification on BMG’s disclosure timing and accuracy. In its detailed response, BMG explained the rationale behind its announcements, acknowledged the delays and contractor issues, and affirmed that all disclosures were made in compliance with ASX Listing Rules, particularly continuous disclosure obligations under Rule 3.1. The company also confirmed that its responses were authorised by its board or delegated officers.

Implications for Investors and Next Steps

While the assay results have now been fully disclosed, the initial discrepancies highlight the challenges in assay processing and interpretation at Abercromby. Investors will be watching closely for further technical updates and resource model revisions that may arise from these findings. The episode underscores the importance of rigorous assay verification and transparent communication in maintaining market confidence.