BMG Resources Intensifies Drilling for High-Grade Gold Extensions at Abercromby Project in WA
BMG Resources has ramped up operations at its fully owned Abercromby gold project near Wiluna in Western Australia, launching an aggressive drilling campaign to uncover high-grade extensions to its existing half-million-ounce gold resource. The company is focused on expanding the resource base through targeted exploration efforts.
Drilling Progress and Targets at Capital Deposit
Reverse circulation pre-collars for the initial seven holes of the phase one program have been completed, reaching an average depth of 130 metres. A diamond drill rig has now been deployed to continue the work, with plans to drill to depths of up to 500 metres. The ongoing 10,000-metre resource development drilling program is operating around the clock, with 1,100 metres already completed.
BMG is specifically targeting the Capital deposit, which currently holds a resource of 11.12 million tonnes at 1.45 grams per tonne gold, equivalent to 518,000 ounces. The deposit remains open in all directions, and the company aims to identify additional high-grade mineralisation along strike to the north and south, as well as down-dip at depth.
Geological Insights and Regional Comparisons
According to BMG's geological model, the Capital deposit is a structurally controlled gold system, with indications that grades may increase at depth. Management notes similarities to other major ductile gold systems in the region, such as the Never Never deposit, which was recently acquired by Ramelius Resources and boasts a high-grade resource of 7.5 million tonnes at 8.8 grams per tonne gold for 2.1 million ounces.
BMG Resources Chief Executive Officer Ben Pollard stated, "With drilling progressing well and the Abercromby Scoping Study imminent, BMG is pushing forward a pipeline of deliverables that will add value to our assets and for our shareholders."
Infrastructure and Processing Advantages
Beyond drilling, BMG is accelerating the Abercromby project toward a final investment decision. The project is situated on a granted mining lease and benefits from proximity to established gold processing plants. A memorandum of understanding has been signed with Wiluna Mining to explore processing ore at the Matilda carbon-in-leach plant, located just 20 kilometres from the site.
Previous metallurgical testing in 2023 confirmed that the gold is free-milling across all zones, with recoveries of up to 95 per cent using conventional carbon-in-leach processing, providing a significant advantage for future operations.
Upcoming Milestones and Corporate Rebranding
A near-complete scoping study is set to outline the economics of a potential mining operation at Abercromby, bringing the project closer to development. BMG plans to release the study results once initial assay data from the current drilling round is received, expected within the next five weeks.
In a strategic move to reflect its focus on Western Australian assets, BMG has proposed changing its name to "WA Gold Limited." Shareholders will vote on this rebranding at a general meeting scheduled for April 15.
Future Outlook and Market Anticipation
BMG has embarked on a busy second quarter, activating diamond rigs to demonstrate the high-grade potential of its Western Australian gold portfolio. With the scoping study on the horizon and a potential rebranding to "WA Gold," the company is fast-tracking its transition from explorer to developer.
Attention is now on the upcoming assay results, expected next month. If the data proves favourable, it could pave the way for transforming Abercromby's existing 518,000-ounce resource into a significantly larger operation, enhancing shareholder value and solidifying BMG's position in the gold mining sector.
