BMG Resources is running through the gears at its Abercromby gold project in the Wiluna region of WA with the explorer onto its next phase of diamond drilling at the operation’s greater Capital prospect.
The 8-hole diamond probe will take in around 3,700m and is aimed at defining new resources and extending the footprint of previously discovered lodes– ore-bearing deposits that form between layers of rock.
The company has its foot on a 6km stretch of on-strike mineralisation at Capital and will use the diamond program to scrub up a batch of resources along this zone over the next three months. The probe follows fresh success at the target with a previous diamond probe delivering a significant set of gold hits that more than doubled the size of the deposit, substantially enhanced the operation’s gold-bearing potential and sent the share price flying over 50 per cent.
Results from the previous campaign include a 31-metre strike at 6.18 grams per tonne gold from 162m with a 1m component running a head-turning 181.94 g/t gold from 191m.
The 31m hit was housed within an even longer 77m intersection running 2.99 g/t gold from 116m.
The earlier diamond program also plunged a 660m hole beneath the Capital prospect’s main target zone and intercepted a 38m section going 0.5 g/t gold from 309m and 2.55m grading 1.64 g/t from 633m. BMG says the pair of strikes underline the operation’s potential at depth.
Outside of its success with the diamond rig, BMG has also completed a 57-hole aircore program at its nearby Capital South, Barrack and Archer prospects.
The work totalled 5,428m and was used to drill test a trio of large-scale gold anomalies outlined in a previously completed sub-audio magnetic, or ‘SAM’ geophysical survey across an area with little prior drilling.
The company expects to have its hands on its latest batch of aircore results by mid-July and is now gearing up to sink two additional holes.
Some of the headline results from earlier air core work at the ground include a 4m strike running 3.58 grams per tonne gold from 52m from a hole sunk at Archer. BMG says the hit is interpretated to be a southern extension of the Abercromby shear, that remains open for close to 1.4 kilometres.
Management argues it will use the in-progress diamond bore, along with the looming two-hole aircore program to define a potentially significant high-grade gold system at Capital.
The company is moving towards the delivery of a maiden resource estimate at the operation and will also use the future programs to test a suite of gold anomalies defined through the previously run SAM survey and aircore work.
Interestingly, the project is in earshot of a string of major gold deposits including Wiluna Mining Corporation’s 12 million ounce Wiluna gold operation and Northern Star Resources’ 10 million ounce Jundee asset.
BMG looks to have pegged itself a prime piece of turf, with drilling to-date seemingly suggesting Abercromby houses a significant gold resource and with a smorgasbord of large footprint deposits on its doorstep things could get interesting very quickly for the company.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
