BMG Resources (ASX:BMG) has begun resource development drilling at its wholly owned Abercromby Gold Project in Western Australia.
The company will conduct 10,000m of resource expansion drilling to target extensions to the current resource estimate of 518,000 ounces, which is open in all directions.
This campaign will test underexplored zones that previously intersected ‘high-grade’ mineralisation, while also increasing confidence in the resource model and supporting mine planning for a Scoping Study.
BMG plans to release the Abercromby Scoping Study in Q1 2026.
Drilling represents BMG’s first ‘major’ drilling campaign since announcing the resource estimate in 2023.
The previous campaign returned intercepts including 57.5m @ 5.73 grams per tonne gold from 80m; 77m @ 2.66g/t gold from 116m; 26m @ 6.07g/t gold from 192m, including 71m @ 21.22g/t gold; and 37m @ 2.58g/t gold from 144m, including 8m @ 8.1g/t gold.
CEO Ben Pollard says the company is excited to have its “boots on the ground” at Abercromby.
“We’ve strengthened our executive team with extensive technical and development experience and are well-positioned to grow and upgrade the resource base to support development studies and advance Abercromby along a clear pathway to production,” Pollard says.
“There are numerous walk-up drill targets to follow up some of the outstanding gold intercepts at the Capital deposit and deliver significant potential resource growth.
“The drilling is also designed to support our near-term development strategy to establish a relatively low-risk, simplified mine plan to capitalise on the record gold price by advancing BMG to ‘producer’ status.”
As reported by Mining.com.au, the gold price sat at US$5,690 ($8,062) an ounce on the morning of 2 March, driven by renewed safe haven demand after US and Israel’s attacks on Iran sharply escalated tensions in the Middle East.
Write to Maddison Elliott at Mining.com.au
Images: BMG Resources
