Western Australian gold explorer BMG Resources Limited (ASX: BMG) (BMG or the Company) is pleased to provide an update on drill programs at the Company's 100% owned Abercromby Gold Project in the north-eastern goldfields of WA.
BMG Managing Director Bruce McCracken said: 'Our systematic drilling is demonstrating strong potential to further expand the mineralised envelope at the Capital Prospect as we progress towards a maiden resource for Abercromby. 'Diamond drilling at Abercromby continues 24/7, with encouraging early geological observations from two completed holes indicating that prospective alteration has been intersected in the predicted extensions of the East and West gold lodes. 'The air-core drilling testing large regional gold anomalies to the south has now been completed. Assays are expected this month, and the Company is excited by the opportunity to make a new discovery in this underexplored area of our tenure. 'We look forward to updating investors as our drilling progress continues and results come to hand.'
Diamond Drilling
The DD program at the greater Capital Prospect area comprises 8 holes for 3,700m, and is aimed at resource definition and extension of the high-grade gold lodes identified to date.
The Company is pleased to report that the DD program is progressing well with two shifts operating. To date, almost two holes have been completed (22ABDD006 (completed) and 22ABDD008 (substantially completed)) to 664.7m and c.560m of 650m respectively, with the next hole (22ABDD009) to commence shortly
Hole 22ABDD006 is a re-drill of 21ABDD004, which suffered terminal drill rod failure at 360m prior to its target depth, and is designed to test extensions of the West Lode. 21ABDD004 intersected 10m @ 11.71 g/t Au from 295m in the East Lode, 250m south of the existing mineralisation, confirming a very significant depth extent to the shallow, high-grade mineralisation at Capital. Preliminary visual observations indicate that prospective shearing and quartz veining was observed in 22ABDD006 in the zone corresponding with the expected extensions of the East lode. An additional zone of sheared mafics with quartz veining and alteration was observed towards the end of the hole around 600 to 620m. In addition, both holes, 22ABDD006 and 22ABDD008, contain observed shearing with quartz veining and alteration corresponding with the expected extensions of East and West gold lodes positions
Aircore Drilling
The Company has now completed all the holes that were part of the Aircore drilling infilling new, highgrade anomalisms intersected in the previous round of work in the Archer, Barrack and Capital South areas. The higher-grade gold assays were returned in positions with good potential for significant strike extent. These aircore targets form the foundation of BMG's growing prospect pipeline at Abercromby. A total of 59 aircore holes for 5,658m were completed. Initial assay results are expected in July
Contact:
Tel: (61 8) 9424 9390
Email: enquiry@bmgl.com.au
Web: www.bmgl.com.au
Update on Sale of Treasure Development Interest, Cyprus
BMG provides an update regarding the proposed sale of its remaining 10% interest in Treasure Development Limited (TDL) to New Cyprus Copper PA Limited (New Cyprus). TDL is the owner and operator of the Treasure Project in Cyprus. New Cyprus, a wholly owned subsidiary of Caerus Mineral Resources PLC (LON:CMRS) (Caerus), is the majority shareholder of TDL with 90% ownership. Following the acquisition by New Cyprus of an additional 20% interest in TDL from BMG completed in May 2022, as foreshadowed in BMG's March 2022 Quarterly Activities Report (released to ASX on 29 April 2022), BMG exercised its put option for the sale of its remaining 10% interest in TDL. New Cyprus has not paid BMG the sum of A$2,000,000 for the purchase of BMG's remaining 10% interest in TDL in accordance with the time frame required under the Share Purchase Agreement pursuant to which BMG has exercised its put option. BMG maintains that NCC is now in breach of contract and has given notice of default to NCC. BMG will endeavour to resolve the matter in accordance with the dispute resolution procedures of the Share Purchase Agreement. BMG will keep the market informed of the outcome of the matter as and when resolved. The dispute regarding TDL will have no impact on the exploration programs underway at BMG's 100% owned Western Australian projects.
About the Abercromby Project
The Abercromby Project is located on the Wiluna Greenstone Belt, one of Western Australia's most significant gold-producing regions with a gold endowment of +40Moz Au - second only to Kalgoorlie globally in terms of historic production. Mineralisation at Abercromby is hosted by the Perseverance Shear, a regional structure supporting large resources along its strike.
Contact:
Bruce McCracken
Tel: +61 8 9424 9390
Email: enquiry@bmgl.com.au
BMG RESOURCES LIMITED 