BMG shares up to 50% after doubling WA gold deposit


Shares of BMG Resources jumped more than 50% in intraday trading after confirmation that diamond drilling on the Capital prospect, part of the larger Abercromby project in Washington state, had produced another serious batch gold results that have more than doubled the size of the deposit and considerably increased the potential of mining resources.

The results form the latest piece of a 6,700m RC and diamond drill program completed in February to guide extensions to depth and strike mineralization at the venture.

Some of the best results from the program include a 31 meter discovery yielding 6.18 grams of gold per tonne from 162m with a 1m section yielding an impressive 181.94 g/t gold from 191m .

The 31m strike was housed in a wider 77m intersection containing 2.99 g/t gold from 116m.

Results from another hole drilled approximately 250m outside the known mineralization envelope of the Capital prospects include a strike of 10m grading 11.71 g/t gold from 295m. According to the company, the outstanding rating highlights the strike’s potential extension of its eastern vein.

A west vein probe returned a section of 13.8 m at 6.56 g/t gold from 446 m.

Meanwhile, a 660m hole drilled below the main capital area hit a 38m intersection grading 0.5g/t gold from 309m and 2.55m grading 1.64g/t gold. t from 633 m. The explorer says the reinforcement underscores the remarkable prospectivity of the company’s largest gold system.

It is now well and truly the game at Abercromby. In a single program, we have more than doubled the likely size of the deposit, intersected ultra-high-grade gold in fresh rock, and proven the system to be fertile at depth with the deepest drilling undertaken on the project to date. day.

Our geological and grade models again successfully targeted mineralization at or very close to the predicted locations, with extrapolation being true at distances greater than 250m. The nature and style of the mineralization is increasingly recognized and the Company is in an excellent position to build on further successes with the drill bit here.

Prior to recent work by BMG, known mineralization at Capital’s main prospect was limited to an area of ​​300m x 100m, with the deepest intersection recorded at approximately 230m below surface.

Interestingly, the company says its recent play has increased the known strike of the main Capital mineralization and has more than doubled the down-dip area of ​​the mineralized system to at least 520m below surface.

According to BMG, the program validated richer grades in fresh rock, tested strike extensions and provided a platform to better understand the nature and extent of high-grade gold mineralization at Capital.

The company is also awaiting assay results from a 10,300m air drill program that tested extensive anomalies south of Capital.

According to BMG, a breakthrough in results derived from the underexplored tenure could significantly increase the development potential of the Abercromby project and fuel a new 10,000m drilling campaign.

The Company envisions the program will test the persistence of high-grade mineralization from the southern claims along strike and at depth and provide additional resource definition data to support an initial resource estimate at Abercromby.

Remarkably, the Wiluna greenstone belt, which hosts the project, has to date spewed out over 40 million ounces of gold and with a deposit that has now doubled in size, BMG could help put another point in motion. exclamation on the prospectivity of the region.

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