BMG Resources (ASX:BMG) reports the completion of the third major drilling campaign at the Abercromby Gold Project located Western Australia has yielded very ‘encouraging’ results.
Managing Director Bruce McCracken told Mining.com.au on the sidelines of the International Mining and Resources Conference (IMARC) in Sydney today (2 November) that the project, located in WA’s Agnew-Wiluna Greenstone belt, has returned some strong grades.
The MD notes that BMG expects to receive some pending results from the third campaign in the next week.
“Rather than talking in terms of expectations, what we have so far are some really good gold results for the project within this Tier 1 location. In the primary area where we are operating, we are we think we have the makings of a really great project.
“In the primary area where we are operating, we are we think we have the makings of a really great project”
This latest a drill program has added to what we achieved in the second program, and should be adding more certainty to the mineralised footprint and putting us closer to having a resource.”
During the quarter, BMG completed its third major drilling campaign at Abercromby. The program consisted of 6 diamond holes at the Capital prospect and 59 aircore holes to test 3 large regional gold anomalies to the south of Capital.
BMG, which had $2.9 million cash at hand and no debt as of 30 June, holds 100% of Abercromby, which comprises the gold and other mineral rights (ex-uranium) of 2 granted mining leases (M53/1095 and M53/336).
McCracken says since acquiring the project in late 2020 the recently completed third diamond and reverse circulation (RC) drilling campaign, which totaled about 13,000m to 15,000m, followed up excellent results from the ‘highly successful’ second drilling campaign, completed in the June quarter.
BMG has more than doubled the mineralised envelope and continued to define regional targets. Assays from aircore drilling were received in September but, due to longer than expected turnaround times, diamond drilling assays are pending.
“The second major campaign we completed it earlier this year and that was quite an instrumental one to the project because it was testing a lot of deeper targets. It was testing targets along strike and a lot of high-grade zones for continuity.
The outcome was really positive as we effectively doubled the mineralised footprint for the project.”
BMG is advancing towards a maiden resource estimate for the greater Capital prospect. The 6-hole, 3,800m diamond drilling program, completed in September, focused on infill and extensional drilling. McCracken says visual inspection of the first 2 holes – 22ABDD006 and 22ABDD008 – is ‘encouraging’. Both holes contain observed shearing with quartz veining and alteration corresponding with the expected extensions of East and West gold lodes positions.
Hole 22ABDD006 (a re-drill of 21ABDD004, which suffered terminal drill rod failure at 360m prior to its target depth) was designed to test extensions of the West Lode. Hole 21ABDD004 intersected 10m @ 11.71 g/t Au from 295m in the East Lode, 250m south of the existing mineralisation, confirming a ‘very significant’ strike extent to the shallow, ‘high-grade’ mineralisation at Capital.
McCracken told Mining.com.au, which is an official media partner of IMARC, that while the Capital zone remains the company’s primary focus, there are regional opportunities for new discoveries surrounding the prospect.
“We’ve already done some regional aircore drilling to the south, so there’s a lot for us to focus one but we still have a lot to do at the main Capital zone.”
The Abercromby Project is located on the Agnew-Wiluna Greenstone Belt, one of Western Australia’s most significant gold-producing regions with a gold endowment of +40Moz Au –second only to Kalgoorlie globally in terms of historic production. The geology at Abercromby is very favourable for gold mineralisation, with historic drilling at Abercromby having intersected multiple thick intervals of high-grade gold mineralisation to confirm the presence of a ‘large, high-grade’ gold system.
Write to Adam Orlando at Mining.com.au
Images: BMG Resources Ltd
