BMG Resources (ASX: BMG) today provided its quarterly activities report for the three months to 30 September 2022.
BMG’s focus during the quarter was the completion of the third major drilling campaign at the Abercromby Gold Project located in the Agnew-Wiluna Greenstone belt of WA. The third drilling campaign followed up excellent results from the highly successful second drilling campaign, completed in the June quarter, that more than doubled the mineralised envelope and continued to define regional targets. Assays from aircore drilling were received in September but, due to longer than expected turnaround times, diamond drilling assays are pending. BMG expects results imminently.
HIGHLIGHTS:
- Third major drilling campaign – comprising diamond and aircore drilling – completed at Abercromby
- 59-hole regional aircore program further defined significant gold targets to the south of the Capital Deposit
- Extensive supergene mineralisation encountered hints at possible repetitions of the high-grade Capital deposit
- +100ppb Au signature immediately south of planned extensional diamond holes at Capital provides encouragement for a further southerly extension of high-grade mineralisation at Capital
- Emerging affinities of gold anomalism with SAM signatures share parallels with known mineralisation at Capital, warranting further work
- Diamond drilling program at the Capital Deposit completed in September
- Six-hole program focused on infill and extensional and resource definition drilling at the Capital Prospect
- Highly encouraging visual inspection of core indicates expected depth and strike extensions of East and West gold lodes positions o Assays imminent
- New metallurgical program underway
- Test work is being managed by GR Engineering and will support a scoping study for a mining proposal at Abercromby
- New test work will aim to confirm results from the 2021 metallurgical program which confirmed that ore from Abercromby is amenable to conventional carbon-in-leach processing with high gold recoveries achieved
Abercromby Project
Third major drilling program complete
During the quarter, BMG completed its third major drilling campaign at Abercromby. The program consisted of six diamond holes at the Capital Prospect and 59 aircore holes to test three large regional gold anomalies to the south of Capital.
Diamond drilling at Capital
BMG is advancing towards a maiden resource estimate for the greater Capital Prospect. The sixhole, ~3,800m diamond drilling program, completed in September, focused on infill and extensional drilling.
Visual inspection of the first two holes – 22ABDD006 and 22ABDD008 – is encouraging. Both holes contain observed shearing with quartz veining and alteration corresponding with the expected extensions of East and West gold lodes positions.
Hole 22ABDD006 (a re-drill of 21ABDD004, which suffered terminal drill rod failure at 360m prior to its target depth) was designed to test extensions of the West Lode. 21ABDD004 intersected 10m @ 11.71 g/t Au from 295m in the East Lode, 250m south of the existing mineralisation, confirming a very significant strike extent to the shallow, high-grade mineralisation at Capital.
Preliminary visual observations in 22ABDD006 indicate prospective shearing and quartz veining corresponded with the expected extensions of the East lode.
Another key target tested in the program was the continuity of mineralisation intersected in 21ABDD003. The drilling was designed to test around the deeper zones of the West Lode where 21ABDD003 intersected 13.8m @ 6.56m g/t Au from 446m.
Assay results remain pending, but are expected imminently.
Metallurgical testwork
BMG has engaged GR Engineering and Extreme Metallurgy to assist with further metallurgical test work on mineralised material from Abercromby. This will build upon the preliminary testwork undertaken in 2021 which indicated the nature of the Abercromby ore as free milling – refer ASX announcement on 19 April 2021 “High Gold Recoveries (Average 90%) From Metallurgical Testwork of Abercromby Drill Samples”.
A program has been designed to test two circa 50kg samples of fresh mineralised material, the results of which will feed into mine feasibility work planned for the future.
Samples are due to be acquired from drill core reserves in the December quarter and results of the test work are expected to be available towards the end of the same period. Expenditure in relation to this activity during the quarter primarily related to settlement of invoices from the drilling contractor and payments to consultants.
