BMG Resources Launches 10,000m Drilling to Expand Abercromby Gold Resource
BMG Resources has kicked off a significant 10,000-metre drilling campaign at its Abercromby Gold Project in Western Australia, aiming to grow and upgrade its existing 518,000-ounce gold resource. This move supports an upcoming scoping study and advances the project towards near-term production.
- 10,000m resource expansion drilling program commenced at Abercromby
- Targets extensions of 518,000oz gold Mineral Resource Estimate
- Drilling to test high-grade lode extensions and underexplored zones
- Supports scoping study scheduled for Q1 2026
- Project benefits from granted mining lease and nearby toll treatment options
BMG Resources Commences Major Drilling Campaign
BMG Resources (ASX: BMG) has initiated a 10,000-metre resource expansion drilling program at its 100%-owned Abercromby Gold Project in Western Australia. This marks the first major drilling effort since the company announced a maiden Mineral Resource Estimate (MRE) of 518,000 ounces of gold in 2023. The program aims to test extensions of the existing high-grade gold lodes and explore underexplored zones that have previously yielded promising intercepts.
Unlocking Abercromby’s Potential
The Abercromby project’s current resource is open in all directions, providing significant upside potential. Drilling will focus on both strike and dip extensions of known mineralisation, with past results including impressive intercepts such as 57.5 metres at 5.73 grams per tonne gold and 26 metres at 6.07 grams per tonne gold. The program also targets hanging wall zones that remain poorly understood but have shown high-grade gold mineralisation.
Strategic Development and Near-Term Production
BMG’s CEO Ben Pollard emphasised the company’s strengthened technical team and clear pathway to production. The drilling campaign is designed not only to expand the resource but also to increase confidence in the resource model, supporting mine planning for a scoping study due in the first quarter of 2026. The project benefits from a granted mining lease and proximity to operating gold processing facilities, including a memorandum of understanding with Wiluna Mining to potentially toll treat ore at the Matilda CIL plant.
Favourable Mining Conditions
Metallurgical testwork has confirmed that the gold at Abercromby is free milling, with high recovery rates between 93% and 95% using conventional carbon-in-leach processing. The resource starts near surface, making it amenable to open-pit mining, and the high-grade zones within the resource support a staged development approach. These factors collectively position Abercromby as a relatively low-risk project with strong potential to capitalise on current gold prices.
Looking Ahead
The upcoming scoping study will focus primarily on Indicated Resources, which carry a higher confidence level for mine planning. As drilling results come in and the study is finalised, investors will gain clearer insight into the project’s economic viability and timeline to production. BMG’s methodical approach signals a commitment to advancing Abercromby from exploration to a producing gold mine in the near term.
Bottom Line?
BMG’s drilling campaign and scoping study will be pivotal in defining Abercromby’s path from resource to production.
Questions in the middle?
- Will the drilling results significantly increase the current 518,000oz gold resource?
- How soon could Abercromby realistically transition to production following the scoping study?
- What are the terms and timelines of the toll treatment agreement with Wiluna Mining?
