BMG Resources Prepares for New Drilling Phase at Abercromby Gold Project
BMG (BMG) Share Update November 2024 Tuesday 12th
BMG Resources to Resume Drilling at Abercromby Gold Project
BMG Resources Limited (ASX: BMG) has announced the commencement of a new diamond drilling program at its 100%-owned Abercromby Gold Project, aimed at expanding and upgrading its gold resource.
Instant Summary:
- Diamond drill program to begin this month at Abercromby Gold Project.
- Focus on extending high-grade zones and upgrading resources.
- Potential to significantly increase the current resource of 518,000 oz Au.
- DDH1 Drilling selected as the contractor for the program.
- Program of Work approval already secured.
Drilling Program Details
BMG Resources Limited is set to launch a new diamond drilling program at its Abercromby Gold Project, with the aim of expanding the current gold resource and upgrading inferred resources to the indicated category. This initiative follows a successful capital raising effort that demonstrated strong investor support.
The Abercromby Gold Project, located in a well-established mining region, currently boasts a maiden resource of 518,000 ounces of gold at a grade of 1.45 g/t Au. The project is strategically positioned with access to necessary infrastructure and is surrounded by several operational gold mines.
Resource Expansion and Upgrades
The upcoming drilling will target high-grade zones beyond the existing resource shell, with the potential to significantly enhance the project's economics. Infill drilling is also planned to convert inferred resources to indicated status, thereby increasing resource confidence and supporting future development studies.
The Abercromby Project's maiden Mineral Resource Estimate (MRE) is part of the Capital Deposit, which remains open at depth and along strike. The prospective stratigraphy extends over 6 kilometers, with only 1.2 kilometers systematically drilled so far, suggesting substantial discovery opportunities.
Future Exploration Plans
In addition to the current drilling efforts, BMG plans further exploration activities early next year to test regional targets south of the Capital Deposit. Reconnaissance aircore drilling has already confirmed the presence of a large high-grade gold system at the Capital South, Archer, and Barrack Prospects.
This announcement is likely to positively influence BMG's stock price as it signals potential growth in the company's gold resource base. The strategic focus on high-grade zones and resource upgrades could enhance the project's economic viability and attract further investor interest.
Investor Reaction:
Analysts are likely to view this development favorably, given the potential for resource expansion and the strategic location of the Abercromby Project. The market may respond positively, anticipating increased resource estimates and improved project economics.
Conclusion:
Investors should keep a close watch on the results of the upcoming drilling program and consider the potential long-term benefits of BMG's strategic initiatives. The company's ability to increase its gold resource could play a crucial role in its future growth trajectory.