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Mining industry

BMG Resources Limited Reports Encouraging Results at Abercromby Gold Project

Strategic Insights

— 2 min read

BMG Resources Limited has made significant progress in the exploration and extensional drilling at its 100%-owned Abercromby Gold Project in Western Australia. The company's Non-Executive Chairman, John Prineas, highlighted the opportunity for shareholder value creation through the commercialization of the Abercromby deposit and the increase of the Mineral Resource Estimate (MRE) through exploration. With a resource upside of 1.2km of the 6km gold trend effectively explored by drilling, the large gold system remains open along strike and at depth.

Key Takeaways:

  • BMG Resources Limited has completed the Phase 1 drilling program at the Abercromby Gold Project, which intersected high-grade gold mineralization in all three drill holes.
  • The maiden MRE for the Abercromby Gold Project is comprised of 11.12Mt @ 1.45 g/t Au for 518,000oz Au.
  • The company is continuing scoping study work to assess the optimal scenario for a potential development at Abercromby, with strong interest received from potential financiers and partners.
  • Previous drilling in the East Lode has returned exceptional intercepts of gold mineralization, including 77m @ 2.66 g/t Au from 116m.
  • Drill hole 24ABDD003 intersected a thick zone of alteration that returned assays of 46.34m @ 0.38g/t Au from 116m, including a peak gold grade of 2.77 g/t.
  • The company has taken steps to ensure more orderly and efficient processing and assaying of drilling samples, starting with the Bullabulling drilling which is currently underway.
  • The Abercromby Gold Project is located on a mining lease with location close to transport infrastructure and proximity to gold mills, offering potential for a low-capex, fast-tracked development.
  • Only 1.2km of the 6km gold trend has been effectively explored by drilling, with the large gold system remaining open along strike and at depth.

Statistics:

  • 11.12Mt @ 1.45 g/t Au for 518,000oz Au (Maiden Mineral Resource Estimate for the Abercromby Gold Project)
  • 105 drill holes for 36,254 meters drilled (prior drilling utilized for definition of the MRE)
  • 1,200m strike extent of the East and West Lodes
  • 6km of prospective stratigraphy extending for more than 6km
  • 46.34m @ 0.38g/t Au from 116m (including a peak gold grade of 2.77 g/t) in drill hole 24ABDD003
  • 77m @ 2.66 g/t Au from 116m in previous drilling in the East Lode

Sources:

  • BMG Resources Limited (ASX: BMG) (Company news release)
  • [Note: Source is the company's news release, but the original text does not provide a direct link or date. The news release is assumed to be current based on the information provided.]

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