BPM Minerals Launches Phase 3 Drilling at Louie Prospect
BPM (BPM) Share Update December 2024 Monday 2nd
BPM Minerals Commences Phase 3 Drilling at Louie Prospect
BPM Minerals Ltd (ASX: BPM) has announced the commencement of a new phase of exploration drilling at the Louie Gold Discovery within the Claw Gold Project in Western Australia.
Instant Summary:
- Phase 3, 2,000m RC Drilling Program Underway.
- Targeting high-grade mineralisation at depth.
- Drill for equity agreement with Topdrill Pty Ltd.
- Significant high-grade results reported previously.
- Strategic location in a proven gold corridor.
Drilling Program Details
BPM Minerals has initiated its Phase 3 drilling program at the Louie Prospect, part of the Claw Gold Project. This 2,000-meter reverse circulation (RC) drilling program aims to explore deeper mineralisation and define an economic gold discovery. The focus is on a high-grade 600-meter core within a larger 1,000-meter regolith anomaly.
The Louie Prospect is strategically located south of Capricorn Metals' Mount Gibson Gold Project, which boasts a significant gold resource. BPM's drilling efforts are concentrated at the northern end of an 8-kilometer prospective corridor, extending exploration to the Chickie Prospect.
Drill for Equity Agreement
BPM has entered into a drill for equity agreement with Topdrill Pty Ltd, allowing the company to pay up to 50% of drilling costs in shares. This arrangement, capped at $1 million, will support the Phase 3 drilling program, with shares issued based on the volume-weighted average price (VWAP) over five days before invoicing. The issued shares will be subject to a six-month escrow period.
Previous Exploration Success
Significant high-grade results have been reported from previous drilling at Louie, including intercepts such as 25 meters at 1.27 g/t gold and 10 meters at 1.12 g/t gold. These results underscore the potential for substantial gold resources within the project area.
Future Exploration Plans
Looking ahead, BPM plans additional aircore drilling in early 2025 to explore the broader project area. A new tenement application could unlock an additional 20 kilometers of strike potential, with exploration programs currently in planning stages.
The commencement of Phase 3 drilling at the Louie Prospect is a positive development for BPM Minerals, potentially enhancing the company's gold resource base. The strategic drill for equity agreement with Topdrill demonstrates confidence in the project's prospects and provides a cost-effective means of advancing exploration.
Investor Reaction:
Analysts are likely to view this announcement positively, as it signals BPM's commitment to advancing its exploration efforts. The drill for equity agreement may also be seen as a strategic move to conserve cash while maintaining momentum in exploration activities.
Conclusion:
Investors should monitor the results of the Phase 3 drilling program and the upcoming aircore drilling campaign. BPM Minerals' strategic initiatives at the Claw Gold Project could significantly impact the company's future growth and valuation.