BMG Resources (ASX:BMG) has unveiled niobium-rare earth element prospectivity at its Dragon Project in the West Arunta region of Western Australia from ongoing exploration.
The $9.5 million market capitalisation company says multiple targets demonstrating structural and magnetic features have been flagged at the project.
BMG reports these targets are similar to those that represent mineralised carbonatites at WA1 Resources’ (ASX:WA1) West Arunta Project and the nearby Aileron project, owned by Encounter Resources (ASX:ENR).
It is at West Arunta where WA1 encountered the ‘significant’ Luni discovery, a discovery which propelled the company’s share price from $0.20 at initial public offering in February 2022 to more than $12 today, giving it a market capitalisation of more than $777 million.
BMG Non-Executive Chairman John Prineas says: “BMG has an outstanding opportunity to acquire a large landholding adjacent to WA1’s project – an opportunity that we believe could provide our company with a pathway to potentially replicate some of WA1’s success.
Our ongoing review of exploration data for the West Arunta region has delivered very positive findings with geological features identified at our Dragon Niobium-REE Project which show similarities to the geological setting for Luni and other mineralised carbonatites in the region.
Several coincident structural and magnetic features, often with a supporting elevated gravity feature, have been identified across the Dragon Project area – this is a textbook signature for mineralised carbonatites. Importantly, these targets are located along or near structures that could have served as conduits for potential carbonatite intrusions.
Our exploration review of the Dragon tenure is ongoing and we are excited to see potential ‘look-a-like’ targets to the Luni-style carbonatite emerging on this under-explored ground.”
On 8 February 2024, BMG struck an option agreement for the potential $2 million acquisition of a 90% interest in 3 Western Australian exploration licences, including the Dragon Project and the landholding which abuts WA1’s Luni discovery, as reported by Mining.com.au.
The Dragon Project is a ‘large’, 1,470km-square project sitting in the West Arunta region, an emerging ‘world-class’ district for niobium-REE mineralisation.
BMG Resources is an ASX-listed gold explorer focused on its portfolio of projects in Western Australia. The company’s other assets include the Abercromby, Invincible, and South Boddington gold projects.
Write to Adam Drought at Mining.com.au
Images: BMG Resources
