Western Australian gold explorer BMG Resources (ASX: BMG) has provided its quarterly activities report for the three months to 31 December 2022.
HIGHLIGHTS:
- Final diamond drill assays received from third major drilling campaign at Abercromby
- Another set of impressive drill results further demonstrate the large, extensive mineral system at the Capital Prospect, with both oxide and fresh mineralisation confirmed along a strike of more than 1.3km
- Extensional drilling delivers wide intercepts of gold mineralisation – up to 90m thick – below and along strike from existing mineralised footprint
- Conformity of mineral system to the south of Capital confirmed. Primary East and West lodes remain open
- Strong potential for further high-grade ounces at Capital and Capital South, and for further Capital-style discoveries
- Metallurgical testwork underway to confirm Abercromby ore as free milling and amenable to carbon-in-leach processing
- Test work is being undertaken by Extreme Metallurgy and GR Engineering Services and will support a scoping study for a mining proposal at Abercromby
- Results are imminent
- Preparation for CY23 exploration programs underway, while the Company remains open to the addition of prospective exploration projects, particularly in the Lithium and battery minerals space
During the quarter, BMG received final results from the third major drilling campaign at the Company’s 100% owned Abercromby Gold Project located in the Agnew-Wiluna Greenstone belt of WA, including the high-grade Capital Prospect.
BMG is targeting a maiden resource estimate at Capital following two highly successful drilling programs in 2022 and pursuing a pipeline of regional targets to the south to make further potential Capital-style discoveries. The Company’s third major campaign expanded on the previous campaign, completed in the June quarter, that more than doubled the mineralised envelope at Capital and continued to define regional targets.
Abercromby Gold Project
On 11 November, BMG received the final results from the third major drilling program at Abercromby completed in September 2022. The program comprised seven diamond holes at the Capital Prospect and 59 aircore holes to test three large gold anomalies to the south of Capital – Capital South, Archer and Barrack.
Laboratory assay results were received for the seven hole, 3,989m diamond drill program which focused on infill, extensional and resource definition drilling at the Capital Prospect. Mineralisation at Capital comprises several north-west trending lodes that contain high-grade, plunging shoots. The latest results continued to define and extend these mineralised zones.
All seven diamond holes intersected mineralisation in positions at or near planned locations down hole. Most significantly, drilling confirmed the southward continuation of the mineralised structure, with both lodes returning mineralised intercepts.
The strong intercept from the West Lode in hole 21ABDD007A indicates the possibility of another high-grade shoot in this area. The result warrants further drilling to define the extent of this high-grade mineralisation. This drill hole was completed 335m south of previous known mineralisation in the West Lode intersecting 5.56m @ 3.5 g/t Au from 400m, demonstrating significant strike extension potential to the West Lode.
Selected results on a hole-by-hole basis for the returned assays are shown below and in Figure 1:
- 5.56m @ 3.5g/t Au from 400m (22ABDD007A)
- 6m @ 2.79g/t Au from 171m (22ABDD007)
- 90m @ 0.6g/t Au from 250m, incl 9m @ 1.81g/t Au from 303m (22ABDD008)
- 8.45m @ 3.46g/t Au from 414.5m and 13m @ 2.3 g/t Au from 317m (22ABDD010)
- 60m @ 0.66g/t Au from 244m, incl 6.6m @ 2.32g/t Au from 272.7m (22ABDD011)
Metallurgical testwork
BMG engaged GR Engineering Services and Extreme Metallurgy to assist with further metallurgical testwork on mineralised material from Abercromby. This work will determine the character of the mineralisation and its amenability to a typical gravity/cyanidation flowsheet, as used in many plants around the world. The work has been completed, and results are imminent.
The program tested two circa 50kg samples of fresh mineralised material, and was designed to build upon preliminary test work undertaken in 2021 that indicated Abercromby ore was free milling across the weathering profile from shallower oxidised zones to deeper fresh rock zones.
Test work results will feed into future planned mine feasibility works.
