BMG Resources (ASX:BMG) Fully funded for drilling at Abercromby Gold Project

5 November 2024

Price Sensitive Announcement $

Highlights:

• BMG has received commitments to raise $1,500,000 through a placement of new shares to sophisticated and institutional investors
• New funds will be used to complete expansion drilling at the Abercromby Gold Project as well as to progress development study work
• Abercromby hosts a maiden Mineral Resource Estimate (MRE) of 11.12Mt @ 1.45 g/t Au for 518,000 oz Au with potential for significant resource expansion through extension drilling and drilling of large regional targets
• Favourable location in an established gold mining region and within a granted mining lease, supporting an expedited pathway to potential development
• Programme of Works approved with BMG finalising tenders for drill campaign

Overview:

BMG Resources Limited (ASX: BMG) (BMG or the Company) is pleased to announce that it has received firm commitments to raise $1,500,000 via a placement of fully paid ordinary shares to institutional, sophisticated and professional investors (Placement).

Advancing the Abercromby Gold Project:
New funds will be utilised to build on the successful drilling and resource activities at Abercromby to date.

The maiden MRE is comprised in the Capital Deposit which remains open at depth and along strike – both to the north and south. A combined reverse circulation (RC) and diamond drilling program is planned to test for extension of the mineralisation as well as to convert inferred resources to the indicated category.

Drilling has also been designed to test regional targets to the south of the Capital Deposit. Reconnaissance aircore drilling at the Capital South, Archer and Barrack Prospects – located along a 1,000m corridor of prospective stratigraphy to the south of the Capital Deposit – has confirmed the presence of a large high-grade gold system and supports the potential for a repetition of significant mineralisation like the Capital Deposit.

Metallurgical studies have already confirmed free milling gold across all zones of the Abercromby orebody, with high recoveries from conventional CIL processing. Further study work will be completed to progress plans for the potential development of a mining operation at Abercromby.

Company Notes:

John Prineas, BMG’s Non-Executive Chairman, said:
“The record gold price is a terrific background for BMG to launch an expansion drill programme at Abercromby.

“Our maiden resource is just the beginning of the gold opportunity at Abercromby. With mineralisation that is open and many outstanding thick intercepts of high-grade gold which have yet to be followed-up, there is excellent potential for further drilling to significantly increase the resource.

“BMG will also continue to advance feasibility study work at Abercromby so that we can confirm the viability for a potential gold mining operation to monetise the growing resource.

“We thank investors for recognising the strong value upside at Abercromby, and we look forward to updating investors on project developments as they occur.”