BMG Resources Limited (ASX: BMG) (BMG or the Company) is pleased to announce that it has entered into a binding option agreement to acquire a 100% interest in the Bullabulling Project, located approximately 25km west of Coolgardie in the Eastern Goldfields of Western Australia.
BMG Managing Director, Bruce McCracken said: 'The Bullabulling project is an excellent opportunity to secure a material foothold in a largely unexplored area of the highly attractive Coolgardie lithium and gold district and is a complementary addition to our portfolio of Western Australian exploration projects, including the high grade Abercromby Gold Project where the Company is targeting a maiden resource.
This highly prospective project hosts confirmed lithium bearing pegmatites and gold and shares geological similarities to other Goldfields lithium deposits like Mt Marion to the east and Nepean to the south. 'Preparations are underway to assess and validate the potential for economic LCT pegmatite mineralisation and lay the groundwork for more extensive exploration post the Option period.'
BULLABULLING PROJECT
The Bullabulling Project offers an opportunity to be involved in a region of increasing significance for lithium mineralisation in Western Australia. Major lithium mines and projects in the region include the Mt Marion mine (71.3Mt @ 1.37% Li20) of Mineral Resources' (ASX: MIN) and the Pioneer Dome deposit (11.2Mt @ 1.21% Li20) of Essential Minerals (ASX: ESS). Tianqi Lithium Energy Australia, a joint venture between IGO (ASX: IGO) and Tianqi, has made a takeover proposal to Essential Minerals highlighting the growing interest of major mining companies in this region
Lithium
Pegmatite occurrences within the project tenure are widespread, several of which contain lithium mineralisation assaying greater than 1% Li2O. Recent work undertaken at the project has confirmed the LCT characteristics of these pegmatites through geochemical assay ratio analysis. The presence of evolved mineral phases such as tantalite, cassiterite, amblygonite, zinnwaldite, lepidolite and spodumene, coupled with favourable textures, underlines the exploration potential of the system for economically significant lithium mineralisation.
The primary target zone extends for +4km to the NNE of the Red Panda prospect, where previous rock chip sampling has delivered numerous occurrences of +1% Li2O, and soil sampling across the target area has delivered strong, coherent, Rb anomalism - indicative of fertile LCT pegmatites. Some recent shallow RC drilling undertaken [by Wildcat Resources] in the immediate vicinity of the Red Panda costean did not deliver any significant results, however BMG does not believe the orientation of the drilling properly tested the lithium bearing pegmatite mapped on the surface. Other priority target areas - P2, P3 and Ubini - have also delivered confirmed LCT pegmatites with Rb anomalism, and in the case of Ubini +1% Li2O from previous rock chip sampling
NEXT STEPS
BMG will conduct groundwork to assess and validate the potential for economic LCT pegmatite mineralisation, and lay the groundwork for more extensive exploration post the Option period. This announcement has been authorised for release by Bruce McCracken, Managing Director of BMG Resources Limited.
Competent Person Statement
The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Ben Pollard, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy. Mr Pollard is the Principal of Cadre Geology and Mining Pty Ltd and has been retained to provide technical advice on mineral projects. Mr Pollard has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Pollard consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Contact:
Bruce McCracken
Managing Director
BMG Resources Limited
Tel: +61 8 9424 9390
Email: enquiry@bmgl.com.au
BMG RESOURCES LIMITED 
