Western Australian gold explorer BMG Resources (ASX:BMG) has reported a maiden Mineral Resource of 11.12 million tonnes at 1.45 grams per tonne gold for 518,000 ounces for the Capital deposit at its Abercromby Gold Project near Wiluna.
The maiden Mineral Resource, combined with metallurgical work that confirmed the orebody as free milling across all zones, is a strong indicator of the potential for a straight-forward open-pit mining operation.
BMG will now begin development studies alongside high-impact expansion drilling to further convert inferred resources to the higher-confidence indicated category.
The company is also preparing for further exploration activities across the Abercromby project area to test large regional gold anomalies to the south, which could deliver further Capital-style discoveries.
BMG Managing Director Bruce McCracken said the large Abercromby maiden mineral resource, delivered at a discovery cost of just $8.35 per ounce, was a step-change in value for BMG.
McCracken said: “Through efficient use of exploration spend across three major drilling campaigns, BMG has shifted from pure explorer to potential developer with a large resource base and huge potential for further growth.
“Abercromby now has a metric for valuation that BMG can use to quantitatively demonstrate to the market its success in leveraging value from the drill bit.
“Abercromby is well located for development.
“The potential to monetise the project in a rapidly appreciating gold price environment, underpinned by this maiden resource for the Capital Deposit, places BMG in an enviable position as we continue to pursue sustained, long-term shareholder value.”
