Gold and lithium explorer BMG Resources (ASX:BMG) reports it has finalised a maiden mineral resource estimate (MRE) for the Capital Deposit within the Abercromby Gold Project in the Wiluna-Agnew region of Western Australia.
The company says the maiden mineral resource is 11.1 million tonnes @ 1.45g/t Au for 518,000 ounces of gold. This maiden mineral resource, combined with metallurgical testwork that confirmed the orebody as free milling across all zones, is a ‘strong’ indicator of the potential for a straightforward open pit mining operation.
The mineral resource estimation at Capital was completed by ordinary kriging within 3D-modelled mineralisation wireframes and block modelling in Surpac, utilising a comprehensive dataset generated by recent work undertaken by BMG as well as work completed by previous owners.
BMG Resources reports it will now start development studies alongside high-impact expansion drilling to further convert inferred resources to the higher confidence indicated category. The company is also preparing for further exploration activities across the Abercromby Project area to test ‘large’ regional gold anomalies to the south, which could deliver further Capital-style discoveries.
BMG’s share price on the Australian Securities Exchange (ASX) had risen by 41.66% to $0.017 as of 11.45am AWST.
Commenting on the maiden mineral resource, BMG Resources Managing Director, Bruce McCracken says: “This large maiden mineral resource at Abercromby, delivered at a discovery cost of just $8.35 per ounce, is a step-change in value for BMG. Through efficient use of exploration spend across three major drilling campaigns, BMG has shifted from pure explorer to potential developer with a large resource base and huge potential for further growth.
“Abercromby now has a metric for valuation that BMG can use to quantitatively demonstrate to the market its success in leveraging value from the drill bit. Abercromby is well located for development”
Abercromby now has a metric for valuation that BMG can use to quantitatively demonstrate to the market its success in leveraging value from the drill bit. Abercromby is well located for development.
The potential to monetise the project in a rapidly appreciating gold price environment, underpinned by this maiden resource for the Capital Deposit, places BMG in an enviable position as we continue to pursue sustained, long-term shareholder value.”
The Abercromby Gold Project is located on the Wiluna Greenstone Belt, which is Western Australia’s most significant gold-producing region with a gold endowment of over 40 million ounces of gold, second only to Kalgoorlie in terms of historic production.
Since acquiring the project in mid-2020, BMG has completed 3 reverse circulation (RC) and diamond drill programs targeting the high-priority Capital deposit which sits within the northern third of the project area.
In parallel to the drill program, BMG has completed metallurgical testwork on the core samples from the Capital deposit, which confirmed its free-milling status and therefore amenability to conventional carbon-in-leach (CIL) processing with ‘high’ gold recoveries achieved.
BMG also reports expansion drilling will test for continuity of mineralisation at depth and along strike at the Capital deposit as well as campaigns to test the extent of mineralisation associated with the large regional gold-anomalous zones to the south of Capital.
BMG Resources is an ASX-listed gold exploration company focused on the Abercromby, Invincible, and South Boddington Gold projects in Western Australia.
Images: BMG Resources Ltd
