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- BMG Resources (BMG) agrees to acquire the Bullabulling project in Western Australia for a mix of cash and scrip
- The project covers an area of 185 square kilometres and contains “highly-prospective” lithium and gold targets
- Surrounding major lithium mines and projects include Mineral Resources’ (MIN) Mt Marion mine and Essential Minerals’ (ESS) Pioneer Dome deposit
- BMG will conduct groundwork to determine the potential for economic LCT pegmatite mineralisation and lay the groundwork for more extensive exploration
- Shares in BMG are up 7.14 per cent, trading at 1.5 cents at 1:25 pm AEDT
BMG Resources (BMG) has agreed to acquire a 100 per cent interest in the Bullabulling project in Western Australia for a mix of cash and scrip
The company said the project location resided in a “region of increasing significance for lithium mineralisation in Western Australia”.
Bullabulling lies around 25 kilometres west of Coolgardie in the Eastern Goldfields of WA.
The project covers an area of 185 square kilometres, containing “highly-prospective” lithium and gold targets.
Surrounding major lithium mines and projects include Mineral Resources’ (MIN) Mt Marion mine and Essential Minerals’ (ESS) Pioneer Dome deposit.
BMG will pay a $40,000 option fee to be followed by $200,000 in cash and 15 million BMG shares in return for the project.
Managing Director Bruce McCracken said the acquisition was a welcome addition to the company’s portfolio of WA exploration projects.
“The Bullabulling project is an excellent opportunity to secure a material foothold in a largely unexplored area of the highly attractive Coolgardie lithium and gold district and is a complementary addition to our portfolio of Western Australian exploration projects, including the high-grade Abercromby gold project, where the company is targeting a maiden resource,” Mr McCracken said.
“This highly prospective project hosts confirmed lithium-bearing pegmatites and gold and shares geological similarities to other Goldfields lithium deposits like Mt Marion to the east and Nepean to the south.”
BMG said recent work completed at the project had uncovered the exploration potential of the system for economically-significant lithium mineralisation.
What’s more, the company said pegmatite occurrences at the project were “widespread”, with a number of them containing lithium mineralisation assaying more than one per cent lithium oxide.
The primary target zone extends for more than four kilometres to the north-northeast of the Red Panda prospect, where past rock chip sampling indicated multiple occurrences of more than one per cent lithium oxide. Soil sampling in the target area also showed strong rubidium anomalism.
The Bullabulling project is also next to and along-strike from the multi-million ounce Bullabulling Gold Mine.
BMG said it would conduct groundwork to better understand the potential for economic LCT pegmatite mineralisation and lay the groundwork for further exploration after its option period, which lasts four months.
Shares in BMG were up 7.14 per cent and trading at 1.5 cents at 1:25 pm AEDT.
