Western Australian focused gold and lithium explorer BMG Resources (ASX: BMG) has provided its annual report to shareholders for the year ended 30 June 2023.
BMG’s success with the drill bit and fiscal discipline saw the company make the step change from pure-play exploration company to multi-commodity explorer and developer.
In April, BMG published a maiden Mineral Resource Estimate at its flagship Abercromby gold project and acquired the highly prospective Bullabulling lithium and gold project near Coolgardie.
The 518,000oz Au Resource at the Capital deposit, which is in the north of the Abercromby project area, was the culmination of just three exploration programs, amounting to about $8 per ounce discovery cost.
The Mineral Resource Estimate provides a metric of value for the project and, importantly, mineralisation is open at depth and to the north with large regional gold anomalies highlighting further resource upside.
Metallurgical testwork undertaken showed Abercromby ore to be free-milling with high gold recoveries, and amenable to conventional Carbon-In-Leech (CIL) processing.
This allows BMG to take full advantage of the significant existing infrastructure that surrounds the project, and greatly enhances its value proposition. Subsequent to the reporting period, BMG commenced preliminary scoping work at Abercromby to assess the development opportunity options for both open pit and underground mining.
Bullabulling is a highly prospective gold and lithium project located in the fast growing Coolgardie lithium province, and surrounded by some of Australia’s largest lithium deposits including Mt Marion and the emerging Kangaroo Hills to the east.
The Project presents an outstanding opportunity to generate shareholder value through early-stage exploration in a lithium region of increasing significance, and a rich gold mining history with well-understood gold ground.
BMG’s first drilling program in May 2023 at Bullabulling delivered anomalous lithium (validating the presence of lithium bearing fractionated pegmatites) and gold intercepts, and identified high-priority targets including Poolmans and Ubini for follow-up drilling.
Subsequent to the reporting period, BMG returned to Bullabulling and commenced a 36-hole, 2,800m reconnaissance program to follow up on these targets, as well as a first-pass drill assessment of pegmatites outside the known prospects.
BMG chair, Greg Hancock said
“Western Australia remains a world-class destination for exploration companies, with outstanding opportunities for the discovery and development of lithium and gold deposits. We are very pleased to have highly attractive projects in both of these sought after commodities.
“BMG continues to assess and plan for FY24, and in the financial year ahead we look forward to building on the significant milestones achieved to date.”
