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Highlights
- BMG Resources (BMG) initiates a new drilling program at its Abercromby gold project.
- The project hosts 518,000oz of gold with significant growth potential.
- Drilling focuses on resource expansion and testing regional targets.
BMG Resources (ASX:BMG) has commenced a new drilling campaign at its 100%-owned Abercromby gold project, located in Western Australia. The project is positioned in a globally recognized gold-producing region, surrounded by significant operations such as Northern Star Resources’ (ASX:NST) Jundee mine.
Abercromby currently hosts a resource of 518,000oz of gold at a grade of 1.45 grams per tonne, offering substantial potential for expansion and further discoveries. The current program aims to build upon this resource while testing new regional targets to unlock additional value.
Focus on Expansion and Upgrades
The campaign seeks to extend mineralization and upgrade existing resources from the inferred to the indicated category. The initial phase will focus on the Capital deposit, where a diamond drill hole has been planned to reach a depth of 430 meters. This drilling aims to target the southern extension of the deposit, which remains underexplored.
Non-executive chair John Prineas expressed optimism about the campaign, highlighting the extensive potential of the Abercromby project. He noted that only 1.2 kilometers of a prospective 6-kilometer strike length has been drilled to date. This leaves significant room for growth and additional discoveries within the mineral-rich stratigraphy of the region.
Further exploration is planned for regional targets to the south of the Capital deposit, including the Archer and Barrack prospects, where aircore drilling has already confirmed the presence of high-grade gold systems. These areas are expected to provide opportunities for new discoveries akin to the Capital deposit, reinforcing Abercromby’s strategic importance.
Metallurgical Advantages
Recent test work at Abercromby has revealed favorable metallurgical properties, confirming that the mineralization is free-milling and suitable for conventional carbon-in-leach processing. High recovery rates, ranging from 93% to 95%, have been achieved, which underscores the economic viability of the project.
The preliminary scoping study for Abercromby further highlighted its potential for both open-pit and underground mining. The study identified high-grade zones in both fresh and oxide rock, with excellent recoveries exceeding 93%. These findings reinforce the project’s appeal as a robust gold development opportunity.
Strategic Growth in a Premier Region
Located in proximity to significant gold-producing operations, including Northern Star Resources’ (NST) Jundee mine, Abercromby is strategically positioned to benefit from established infrastructure and regional expertise. BMG Resources (BMG) aims to leverage this advantage by advancing its exploration and resource development initiatives.
With boots on the ground and drilling underway, BMG Resources is set to unlock further value at Abercromby through resource expansion and new discoveries. This campaign underscores the company’s commitment to realizing the full potential of this promising gold asset.
