Abercromby’s 518,000oz Gold Resource Grows as BMG Advances Scoping Study
BMG Resources reports strong assay results from Abercromby’s Phase 1 drilling, confirming high-grade gold mineralisation and broad alteration zones, while initiating a new drilling campaign at Bullabulling targeting near-surface gold.
- Phase 1 drilling at Abercromby confirms high-grade gold and extensive alteration zones
- Scoping study underway for low-capex, fast payback mining at Abercromby
- Mineral Resource Estimate at Abercromby totals 518,000 ounces of gold
- 3,000m reverse circulation drilling commenced at Bullabulling targeting high-grade zones
- Company managing cash flow with ongoing fundraising discussions to support operations
Abercromby Drilling Validates High-Grade Potential
BMG Resources Limited (ASX, BMG) has delivered encouraging results from its Phase 1 drilling program at the Abercromby Gold Project in Western Australia. Assays from three drill holes intersected high-grade gold mineralisation, with peak grades reaching up to 13.49 grams per tonne. These results confirm the presence of broad alteration zones and a large strike extent in the southern extremities of the Abercromby system, reinforcing the project's significant potential.
The Abercromby deposit currently holds a JORC-compliant Mineral Resource Estimate (MRE) of 11.12 million tonnes at 1.45 grams per tonne gold, equating to approximately 518,000 ounces. Notably, high-grade zones within the resource reach up to 5.94 grams per tonne, offering attractive options for mine planning. The deposit remains open at depth and along strike, with further drilling planned to expand the resource envelope.
Scoping Study and Processing Opportunities
Parallel to exploration, BMG is advancing a scoping study focused on a low-capital expenditure, fast payback mining scenario for Abercromby’s free-milling gold deposit. The study is supported by ongoing discussions regarding potential access to the nearby Matilda processing plant, which could streamline development and reduce upfront costs. Metallurgical testwork has confirmed high gold recoveries of 93% to 95% using conventional carbon-in-leach processing, underscoring the project's economic viability.
Bullabulling Drilling Targets Near-Surface High-Grade Gold
At the Bullabulling Gold Project, BMG has commenced a reverse circulation drilling program totaling up to 3,000 metres across 30 holes. This campaign aims to follow up on several near-surface, high-grade gold intercepts identified in previous reconnaissance drilling, including impressive grades such as 18.1 grams per tonne over 2 metres. Bullabulling is strategically located adjacent to the Bullabulling Gold Mine, recently acquired by Minerals 260 Limited, which hosts a 2.3 million ounce gold resource.
The geological setting at Bullabulling is promising, with the mafic-ultramafic stratigraphy hosting the multi-million ounce mine interpreted to extend into BMG’s tenements. Early drilling results reinforce the potential for significant gold mineralisation, and assay results from the current program are expected in the coming months.
Financial Position and Outlook
During the quarter, BMG reported net cash outflows from operating and investing activities, reflecting ongoing exploration and study expenditures. Cash and cash equivalents stood at $344,000 at quarter-end, with the company estimating less than one quarter of funding available at current expenditure levels. However, BMG is actively engaged in discussions with interested parties for further fundraising, including unsolicited investment interest in Abercromby, and remains confident in its ability to secure additional capital to support its development and exploration programs.
Director payments totaling approximately $44,680 were disclosed, with no changes to the board or production guidance reported this quarter.
Bottom Line?
BMG’s strong drilling results and advancing scoping study position Abercromby for potential development, but upcoming assay results and successful fundraising will be critical to sustaining momentum.
Questions in the middle?
- How will upcoming assay results from Bullabulling influence BMG’s exploration strategy?
- What are the timelines and capital requirements for advancing Abercromby from scoping study to production?
- How successful will BMG be in securing the necessary funding to maintain its exploration and development programs?
