BMG Resources has drilled three diamond holes at its Abercromby project at Wiluna in the Western Australian Goldfields region ahead of a well-deserved Christmas break.

The company began drilling 19 days ago and has booked 1,076 million drill holes so far as part of a first phase program at the Capital deposit aimed at expanding and upgrading the maiden gold resource of 518,000 ounces of Capital.

Only a small portion of the overall 6km long mineralized structure has been tested to date and the company sees potential in both directions laterally and at depth.

BMG also sees potential for resource conversion in poorly tested areas through infill drilling which would close drilling patterns to greater drillhole density and improve its confidence in the continuity of mineralization.

The three diamond core holes were all drilled on the same -65 degree inclination to the west and southwest from 181.9 m and 450 m depth, in the southern third of the Capital deposit. The deposit is at the northern end of BMG’s northern concession.

The company will restart drilling in the new year with a second phase of diamond and reverse circulation drilling to expand and upgrade its first resource of 518,000 ounces of gold at 1.45 grams per tonne (g/t) d Gold – which includes high-grade gold. zones up to 5.94 g/t gold.

BMG’s Abercromby project is based on two granted mining leases, in an established mining region with access to road and electricity infrastructure. It is also near several producing gold mines.

The new drilling campaign marks a key milestone in BMG’s strategy to advance the scale and commercial feasibility of the Abercromby gold project and allows the company to leverage the strengths and proximity of its project.

The new drilling campaign aims to build on the very good drilling results achieved to date at Abercromby, which have supported the premier gold resource which begins near surface and remains open at depth and laterally. The first phase of our new drilling campaign at Abercromby has been successful and we look forward to continuing in the new year with further results that could expand the resources at Abercromby.

Further drilling is planned early next year to test regional targets south of the Capital deposit.

Previous aerial drilling on the Capital South, Archer and Barrack prospects have confirmed the presence of an extensive high-grade gold system. Notably for BMG, the three prospects are located along a 1 km prospective stratigraphic corridor extending south of the Capital deposit.

The company believes there is potential for new discoveries as part of a trend that could be similar to the capital pool.

Renowned DDH1 Drilling is providing drilling services for Abercromby’s latest campaign, which is running 24/7, double-shifted.

The first batch of drill core from the three holes is being sent to Kalgoorlie for logging, cutting and submission to the laboratory, with results expected in February.

The three holes drilled so far show strong alteration and intersected quartz veins in the target areas, which the company says is typical of Abercromby’s style of high-grade gold mineralization. Laboratory analyzes will be the proof of the pudding here.

Hopes are high for the final holes, given that previous holes drilled in the same Capital South area returned some good gold leads, including 77m at 2.66g/t gold from 116m, 26m at 6.07 g/t gold from 192m and 10m at 11.71m. g/t gold from 295m. Another 30 m intercept returned an impressive grade of 10.01 g/t gold at 164 m.

In other work, BMG says the favorable metallurgical characteristics of the Abercromby ore have been confirmed by detailed metallurgical testing undertaken by Extreme Metallurgy and reviewed by GR Engineering Services.

The testing gives the company confidence that the Abercromby gold mineralization is freely mined and amenable to traditional carbon leaching processing, which would enhance the profitability of the project. The tests also demonstrated that it was possible to achieve high gold recoveries of between 93 and 95 percent.

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