Western Australian focused gold and lithium explorer BMG Resources (ASX: BMG) has exercised its option to acquire the Bullabulling gold and lithium project, located 25km west of Coolgardie in the Eastern Goldfields of Western Australia, following highly encouraging results from the maiden RC drilling program.
Anomalous lithium and gold intercepts confirmed from initial Reverse Circulation (RC) drilling results
Priority assays returned to date underly strong prospectivity for lithium and gold:
Poolmans prospect: 4m @ 2.37g/t Au from 53m (23BBRC019)
Ubini prospect: 3m @ 0.31% Li2O from 12m (23BBRC012) and 4m @ 0.16% Li2O from 13m (23BBRC016)
High priority targets identified, and planning for follow up drilling underway
Outstanding assays expected in coming weeks to drive strong newsflow
Initial assays from the recent drilling program undertaken by BMG have returned anomalous lithium and gold intercepts, confirming strong prospectivity for both lithium and gold within the tenure. Details of completed drill holes and assays received are contained in Schedule 1 to this announcement.
Historic exploration identified widespread pegmatite occurrences within the Project tenure, several of which contain lithium mineralisation assaying greater than 1% Li2O. Work undertaken by BMG prior to the RC campaign confirmed the LCT characteristics of these pegmatites through geochemical assay ratio analysis. The presence of evolved mineral phases such as tantalite, cassiterite, amblygonite, zinnwaldite, lepidolite and spodumene, coupled with favourable textures, underlines the exploration potential of the system for economically significant lithium mineralisation.
BMG Resources Managing Director Bruce McCracken said:
“BMG is delighted to bring the Bullabulling Project into our portfolio of Western Australian gold and lithium projects and secure a foothold in the emerging Coolgardie lithium and gold region.
“This highly prospective lithium and gold project presents a robust investment case for BMG, and an outstanding opportunity to generate shareholder value through early-stage exploration.
“The Coolgardie region boasts a long history of mining where the ground is well understood. Bullabulling is located close to infrastructure and major discoveries, including Mt Marion to the east and Nepean and West Spargoville to the south.
“Lithium results returned to date show early potential for the discovery of significant lithium-bearing pegmatites, and the outstanding drill intercept in the first gold hole south of historic workings at Poolmans is highly-encouraging.
“Assays are expected in coming weeks that will drive news flow and inform our strategy with the drill bit as we pursue further exploration success.”