Western Australian focused exploration company BMG Resources (ASX: BMG) has entered into a binding agreement for an exclusive option to acquire a 90% interest in three exploration licences (one granted and two in application) located in the West Arunta region of Western Australia.
The exploration licences, which would be called the Dragon niobium-REE project, represent a large, strategic landholding of 1,470 sq km that is prospective for niobium and other rare earths elements (REE) and located in a central part of the West Arunta.
The West Arunta region is an emerging world-class district for niobium-REE mineralisation following major discoveries there by WA1 and Encounter Resources Limited (ASX: ENR) .
Other companies including Rio Tinto (ASX: RIO) (in its own right and also in joint venture with Tali Resources Pty Ltd), CGN Resources (ASX: CGR) and MTM Critical Metals (ASX: MTM) are actively exploring in the West Arunta.
Coincident gravity and magnetic features have been identified at the Dragon niobium-REE project and will be further investigated for the potential to represent mineralised carbonatites.
The option agreement provides BMG with an exciting opportunity to expand its project portfolio into high-value critical metals undergoing surging market demand.
BMG Non-Executive Chairman, John Prineas said:
“We are very excited by the opportunity to acquire a large landholding in the West Arunta region, including ground immediately adjacent to WA1 Resources’ significant Luni discovery and also adjacent to global major Rio Tinto.
“Since listing on the ASX in February 2022 following an IPO of its shares at $0.20 per share, WA1 has been spectacularly rewarded for its exploration success at the West Arunta with its share price now at $10.00 .
“The West Arunta is under-explored elephant country where exploration investments have potential to deliver remarkable returns for investors.
“BMG’s preliminary review of the tenements under option confirms that they are prospective for carbonatite-hosted niobium and other REE mineralisation.”