BMG provides update on Abercromby gold project, WA
11 September
Western Australian focused gold and lithium explorer BMG Resources (ASX: BMG) has provided an update on the parallel development and exploration workstreams underway to build on the maiden Mineral Resource of 11.12Mt @ 1.45 g/t Au for 518koz Au at the Capital Deposit, part of the Abercromby gold project in the Wiluna-Agnew greenstone belt, WA.
HIGHLIGHTS
Preliminary scoping work progressing well to assess economic potential for open pit and underground mining
Studies are aimed at optimising the best pathway for the growth and potential development of the project
Free milling gold across all zones of the Abercromby orebody, with high recoveries from conventional CIL processing
173koz in oxide and transitional material and 345koz in fresh rock giving development optionality
High-grade zones include 4.6Mt @ 2.4 g/t Au for 360,000 oz (cut-off of 1.2 g/t) ▪ Abercromby is on granted mining leases providing an expedited pathway to mining approvals
The mineralisation at Capital remains open at depth and along strike which, together with the large regional gold anomalous zones to the south, highlights the potential to add significant ounces to the maiden resource
The Company has commenced preliminary development studies while also planning resource expansion drilling at the Capital Deposit and further testing of large regional gold anomalies to the south of Capital which have the potential to deliver further Capital-style discoveries.
BMG has engaged independent consultants Intermine Engineering to assess mining options via open pit and underground exploitation methods.
Rockwater Hydrogeological and Environmental consultants are undertaking hydrological studies, MineGeoTech have been engaged to give advice on geotechnical issues and previous work by Extreme Metallurgy and GR Engineering will inform metallurgical assumptions. Environmental work is being undertaken by Jane O’Neill Consulting drawing on the large pool of information available from previous studies.
BMG Resources Managing Director Bruce McCracken said:
“Abercromby is a highly prospective, underexplored gold project with a free-milling orebody that offers development optionality. A huge bonus is the location of Abercromby – on granted mining leases in an established mining region.
“BMG delivered a high-quality maiden Mineral Resource for the Capital deposit earlier this year from just three drilling programs. Importantly, mineralisation remains open at depth and along strike. The large regional gold anomalous zones to the south of Capital further highlight the potential to add additional ounces.
“Preliminary scoping work at Abercromby is continuing and we expect that outcomes will provide encouragement for development potential via underground and open cut mining operations. Page 2 of 7 “Following the completion of the scoping work, BMG will undertake a strategic assessment to determine the best avenues to generate shareholder value from Abercromby.
“We are also excited to be progressing our second lithium and gold drill program at the 100%-owned Bullabulling Project. This program will generate strong newsflow with drill results expected over the coming weeks.”
