Western Australian gold explorer BMG Resources (ASX: BMG) has delivered a major project milestone for its 100% owned Abercromby gold project in WA, today reporting a maiden Mineral Resource of 11.12Mt at 1.45 g/t Au for 518koz for the Capital deposit.
HIGHLIGHTS
- Maiden Mineral Resource for Capital Deposit of 11.1Mt @ 1.45 g/t Au for 518koz Au (0.4g/t and 1.25g/t cut-offs for open pit and underground zones respectively)
- Open Pit area: 354koz @ 1.17g/t Au (>0.4g/t Au between surface and 200mbs)
- Underground area: 164koz @ 3.09g/t Au (>1.25g/t Au between 200 and 500mbs)
- 353koz (68%) Au Indicated and 165koz (32%) Au Inferred (using resource constraint above)
- 345koz in oxide and transitional material, 173koz in fresh material
- Higher grade component of the resource is 430koz @ 2.01g/t Au at a 1.0g/t lower cut-off
- Low $8.35/oz discovery cost
- Abercromby is on granted mining leases providing an expedited pathway to mining approvals
- Capital Deposit has open pit potential, with mineralisation starting from near surface extending at depth and along strike beyond Mineral Resource footprint
BMG will now commence development studies alongside high-impact expansion drilling to further convert Inferred resources to the higher-confidence Indicated category. BMG is also preparing for further exploration activities across the Abercromby Project area to test large regional gold anomalies to the south, which could deliver further Capital-style discoveries.
BMG Resources Managing Director Bruce McCracken said:
“Abercromby now has a metric for valuation that BMG can use to quantitatively demonstrate to the market its success in leveraging value from the drill bit.
“Abercromby is well located for development. The potential to monetise the project in a rapidly appreciating gold price environment, underpinned by this maiden resource for the Capital Deposit, places BMG in an enviable position as we continue to pursue sustained, long-term shareholder value.”
