Join our daily newsletter At The Bell to receive exclusive market insights
BMG Resources (ASX: BMG) has commenced a 10,000m resource development drill campaign at its Abercromby gold project in Western Australia.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
CEO, Ben Pollard, said drilling is targeting extensions of the current 518,000 ounces of gold mineral resource estimate (MRE) at Abercromby which is open in all directions.
“We are excited to once again have boots on the ground at Abercromby and to commence the first major drill program since 2023,” he told shareholders.
“We’ve strengthened our executive team with extensive technical and development experience and are well-positioned to grow and upgrade the resource base to support development studies and advance Abercromby along a clear pathway to production
“There are numerous walk-up drill targets to follow up some of the outstanding gold intercepts at the Capital deposit and deliver significant potential resource growth.
“The drilling is also designed to support our near-term development strategy to establish a relatively low- risk, simplified mine plan to capitalise on the record gold price by advancing BMG to ‘producer’ status.”
The program is testing for extensions to the high-grade gold lodes already confirmed by drilling, seeking both continuation of these gold lodes at depth and for potential repetition of similar gold lodes along strike.
Mr Pollard said Abercromby is well-positioned to become a near-term gold producer, with a granted mining lease within an established mining region.
Notably the Abercromby MRE starts from near surface and is amenable to open-pit mining.
The company is considering toll treatment options with operating gold processing facilities within trucking distance.
The company has already signed a memorandum of understanding (MoU) with Wiluna Mining to consider a processing arrangement at the Matilda CIL plant.
Metallurgical studies have confirmed free milling gold across all zones of the Abercromby orebody, with high recoveries of 93% to 95% from conventional carbon-in-leach processing.
The resource remains open at depth, with high-grade zones occurring within the global resource, supporting staged development potential.
The company is currently finalising a scoping study assessing the economics of a potential mining operation.
The study is scheduled for release in Q1 2026 and will focus primarily on indicated resources that provide a high level of confidence for mine planning.
BMG is up 5.26% to 4.0¢. Mkt cap $44.42M.
Join the discussion: See what HotCopper users are saying about BMG Resources and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
