BMG shares up 50 per cent after doubling WA gold deposit

Shares in BMG Resources surged more than 50 per cent on intraday trading following confirmation that diamond drilling at the Capital prospect, part of the larger Abercromby project in WA has delivered another serious batch of gold results that have more than doubled the size of the deposit and significantly boosted the operation's resource potential.

The results form the final piece of a 6,700m RC and diamond drilling program completed in February to vector in on depth and strike extensions of mineralisation at the venture.

Some of the better results from the program include a 31-metre strike going 6.18 grams per tonne gold from 162m with a 1m section going an impressive 181.94 g/t gold from 191m.

The 31m hit was housed in a broader 77m intersection running 2.99 g/t gold from 116m.

Results from another hole plunged about 250m outside of the Capital prospects known mineralisation envelope include a 10m strike grading 11.71 g/t gold from 295m. According to the company, the bumper grade highlights the potential strike extension of its east lode.

A probe of the western lode delivered a 13.8m section at 6.56 g/t gold from 446m.

Meanwhile, a 660m hole sunk beneath the main Capital zone struck a 38m intersection grading 0.5 g/t gold from 309m and 2.55m at 1.64 g/t from 633m. The explorer says the brace underlines the remarkable prospectivity of the larger gold system at the venture.

BMG Resources’ Managing Director, Bruce McCracken said:“It’s now well and truly game on at Abercromby.  In one single program, we have more than doubled the likely size of the deposit, intersected extremely high-grade gold in fresh rock and proven the system is fertile at depth via the deepest drilling undertaken at the Project to date.” 

“Our geological and grade models have again successfully targeted mineralisation at or very close to predicted locations, with extrapolation holding true at distances in excess of 250m.  The nature and style of mineralisation is becoming well recognised and the Company is in a great position to leverage further success with the drill bit from here.”

Prior to BMG’s recent works, the known mineralisation at the main Capital prospect was restricted to a 300m x 100m area, with the deepest intersection recorded about 230m below surface.

Interestingly, the company says its recent play has increased the known strike of the main Capital mineralisation and over-doubled the down dip area of the mineralised system to at least 520m below surface.

According to BMG, the program proved successful in validating richer grades in fresh rock, testing strike extensions and providing a platform to better understand the nature and extent of high-grade gold mineralisation at Capital. 

The company is also waiting on the assay results from a 10,300m step-out air-core drill program that tested extensive anomalies to the south of Capital.

According to BMG, a breakthrough in results derived from the under-explored tenure could dramatically increase the development potential of the Abercromby project and feed into a new 10,000m drill campaign.

The company envisions the program will test the persistence of the southern tenements high-grade mineralisation along strike and at depth and provide supplementary resource definition data to back a maiden resource estimate at Abercromby.

Remarkably, the Wiluna greenstone belt, that houses the project, has to-date coughed up over 40 million ounces of gold and with a deposit that has now doubled in size, BMG could help put another exclamation point on the region's prospectivity.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au