BMG Resources strikes pegmatites in Coolgardie region with first drill program

Gold-lithium focused explorer BMG Resources (ASX: BMG) has confirmed pegmatite intercepts in multiple holes at its Bullabulling project located near Coolgardie in Western Australia.

BMG Resources in February took an option from an unlisted company to acquire 100% of the project, the option expiring in mid-June.

The project lies adjacent to, and along strike from, the multi-million ounce Bullabulling gold deposit.

BMG undertook a 20 hole, 1,485m reverse circulation drilling program to test for both gold and lithium.

Gold also intersected

Among the pegmatite intersections were a 28m intercept from 2m down hole at the Ubini prospect and, at the Purple Panda prospect, there were multiple intercepts of pegmatites and felsic intrusives.

A two-hole testing of historic gold mineralisation hit a 1.25m quartz vein from 53m down hole.

Managing director Bruce McCracken said the company’s first drilling program at the project has shown early potential for gold and lithium discovery.

The Ubini and Purple Panda prospects are emerging as early targets.

Coolgardie: increasing significance for lithium

Assays are due in the coming weeks that will influence BMG’s decision on whether to exercise its option over Bullabulling.

“Coolgardie has a long history of gold production and increasing significance as one of Western Australia’s most prospective lithium regions,” Mr McCracken continued.

“The Bullabulling project presents an opportunity for BMG to acquire an early-stage exploration project in the neighbourhood of multi-generational mining operations.”

Historic lithium strikes

The company notes that, within the project area, historic exploration identified widespread lithium mineralisation greater than 1% lithium oxide.

The presence of evolved mineral phases such as tantalite, cassiterite, amblygonite, zinnwaldite, lepidolite and spodumene underlines the exploration potential of the system for economically significant lithium mineralisation, BMG adds.

To the far north at Purple Panada, an extensive rubidium anomaly has been identified.

BMG Resource’s flagship is the Abercromby gold project, located on the Agnew-Wiluna greenstone belt, with an estimated 11.12 million tonnes at 1.45 grams per tonne, for a contained 518,000oz.

It also holds the Invincible gold-lithium project in the central Pilbara and the South Boddington gold project, the latter along strike from the 40 million ounce Boddington gold deposit.