BMG Resources Validates Large Gold System at Abercromby with Phase 1 Drilling

Exploration Success at Abercromby

BMG Resources Limited (ASX – BMG) has announced encouraging results from its Phase 1 drilling programme at the Abercromby Gold Project in Western Australia. The drilling campaign, focused on the southern extremities of the known gold system, intersected broad zones of gold-associated alteration and multiple intervals of high-grade gold mineralisation. These findings reinforce the potential for a large, continuous gold system extending along strike and at depth.

The three completed diamond drill holes returned notable assay results, including 46.34 metres at 0.38 grams per tonne gold from 116 metres, and high-grade hits such as 1 metre at 9.17 grams per tonne. While these results did not replicate the thick, spectacular grades seen in some historical drilling, they closely align with the geological model and confirm the presence of significant mineralisation within the inferred resource category.

Assay Verification and Quality Control

BMG encountered some initial discrepancies between preliminary assay results and geological expectations, prompting a comprehensive re-assay of 590 samples at an independent 'umpire' laboratory. The final assays largely confirmed the original results, ruling out errors and validating the integrity of the data. This rigorous verification process underscores BMG’s commitment to reliable resource definition and will inform future drilling and resource estimation efforts.

Next Steps – Phase 2 Drilling and Scoping Study

With Phase 1 complete, BMG is advancing plans for a Phase 2 drill programme combining diamond and reverse circulation drilling. This next phase aims to extend the Capital Deposit, convert inferred resources to the indicated category, and test regional prospects such as Capital South, Archer, and Barrack along a highly prospective 1-kilometre corridor. Concurrently, a scoping study is underway to evaluate the commercial viability of mining the maiden Mineral Resource Estimate of 518,000 ounces of gold, which benefits from favourable location factors including proximity to transport infrastructure and existing gold mills.

Non-Executive Chairman John Prineas highlighted the opportunity presented by the current gold price environment to fast-track development and unlock shareholder value. He noted that only a fraction of the 6-kilometre gold trend has been effectively explored, leaving substantial upside potential for resource growth.

Strategic Outlook

The Abercromby project’s large-scale mineralised system, combined with ongoing drilling and development studies, positions BMG to potentially advance towards a low-capital, open-pit mining operation. The company’s methodical approach to assay verification and resource expansion reflects a disciplined strategy to maximise the project’s value while managing technical risks.