BMG Resources has bagged a patch of prime Eastern Goldfields real estate near Coolgardie in Western Australia that houses a swarm of lithium-rich pegmatites along with a plethora of high-priority gold prospects.
The tenure is located a stone’s throw from the multi-million-ounce Bullabulling gold mine and is nestled amongst a plethora of developing lithium projects including Mineral Resources’ Mt Marion mine and Essential Metals’ Pioneer Dome deposit.
Mineral Resources is looking to churn out 900,000 tonnes of mixed grade spodumene concentrate from its Mt Marion mine which boasts a world-class mineral resource of 71.3 million tonnes grading 1.37 per cent lithium oxide.
Legacy data from BMG’s strategic acquisition alludes to a 4km corridor of pegmatites traced out from rock chip sampling and elevated rubidium detected in portable XRF analysis of soil samples.
Historic rock chip sampling over the tenure has thrown up values in excess of 1 per cent lithium oxide, peaking at 1.9 per cent lithium oxide.
Importantly, visible lepidolite and spodumene have been noted, adding weight to the potential fertility of the mapped pegmatites.
Transecting the turf is a strong magnetic anomaly highlighting a sequence of mafic and ultramafic rocks that are known to host a series of gold occurrences.
Old timers scratched the surface at a throng of gold prospects at the First Hit and Peach projects where follow-up reconnaissance drilling has picked up 5m running at 2.5 grams per tonne gold from 36m along with 2m averaging 5.7 g/t gold from 49m.
With a swag of notable nickel deposits scattered nearby, including Auroch Minerals’ 236,000 tonne Nepean nickel deposit grading 2.08 per cent nickel, BMG will also look to cast its eye over the nickel potential of the mapped ultramafic units.
The ink is now drying on a binding option agreement signed with private entity Fairplay Gold for BMG to acquire 100 per cent of the Bullabulling Project.
Under the key terms of the agreement, BMG has put a down payment of $40,000, buying it four months to pore over the accompanying datasets and get boots on ground to evaluate the tenure. A further cash transaction of $200,000 along with 15 million fully paid ordinary shares after the option period will see BMG finalise the acquisition.
BMG Resources Managing Director, Bruce McCracken said: “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 Abercromby Gold Project where the company is targeting a maiden resource.”
BMG’s wholly owned Abercromby tenure is within the renowned Wiluna greenstone belt where more than 40 million gold ounces have been defined since the precious metal was discovered in the late 1800s.
The company recently wrapped up a 4,000m diamond drilling program at its main Capital deposit pushing the mineralised envelope out to 1.3km long.
Assay highlights include a 5.56m hit at 3.5 grams per tonne gold from 400m whilst a second hole recorded a 6m intercept going 2.79 g/t gold from 171m.
Metallurgical test work completed on a bulk sample from the program reported impressive gold recoveries between 93 to 95 per cent using typical gravity and cyanide carbon-in-leach processing.
BMG already has one advanced gold project on its books and looks to have pegged itself a prime piece of turf strategically located amongst a smorgasbord of large gold, nickel and lithium deposits - 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
