Western Australian gold explorer BMG Resources Limited (ASX: BMG) (BMG or the Company) is pleased to advise that it has completed approximately 1,800m of drilling at the Company's 100% owned Abercromby Gold Project in the north-eastern Goldfields of WA.

Abercromby is located on the Wiluna Greenstone Belt, one of the state's most significant goldproducing regions with a gold endowment of +40Moz Au, and surrounded by Northern Star Resources' (ASX: NST) Jundee and Wiluna Mining's (ASX: WMX) Wiluna operations.

Eight RC drill holes have been completed to-date, while the remaining 10 holes are expected to be completed in the coming weeks. In addition, a diamond rig is also scheduled to arrive on site early next month to complete diamond tails. The deeper diamond drilling will test the depth continuity of the known high-grade gold mineralisation. Geological logging of these initial eight holes has indicated that drilling has intersected multiple intervals of intense hydrothermal alteration characterised by quartz-carbonate-sericite veining and with minor sulphides.

The Company is awaiting receipt of laboratory assays to confirm the extent of any gold mineralisation intersected, with first assays expected by mid-September 2021. Commenting on BMG's first drill campaign at Abercromby, Managing Director Bruce McCracken said: 'The successful maiden campaign by BMG in December 2020 - the first drilling to be carried out at Abercromby in more than 15 years - has given us strong confidence in the potential of this high-grade project.

'This current phase of the drilling campaign is designed to further test the nature and continuity of the known high-grade gold mineralisation, and to test some additional new targets. 'We're now around a third of the way through the 6,000m program, and are encouraged by the drill results seen to date. We look forward to further positive results as the drilling continues and receiving the first round of assay results in the coming weeks.'

Drill campaign

BMG's maiden drill program at Abercromby was designed to test the nature and continuity of known gold mineralisation at the Capital Prospect, which has yielded multiple thick high-grade gold intersections. Eight of the 18 drill holes planned have been completed by BMG, comprising approximately 1,800m.

The majority of the holes drilled to date are around the Capital Prospect. Encouragingly, a number of drill holes intersected intervals of intense hydrothermal alteration with breccias containing quartzcarbonate-sericite veining with minor sulphides. This kind of mineralogy is known to be associated with gold mineralisation intersected previously within the Abercromby project area.

The Company is awaiting receipt of laboratory assays to confirm the extent of any gold mineralisation intersected, with first assays expected by mid-September 2021. Observations of drill hole data referred to above are based on visual interpretation and are, therefore, preliminary in nature. A conclusive determination of any gold or other metal values in the drill holes will be confirmed when laboratory assays are available.

About the Abercromby Project

The Abercromby Project is located on the Wiluna Greenstone Belt, one of Western Australia's most significant gold-producing regions with a gold endowment of +40Moz Au - second only to Kalgoorlie globally in terms of historic production. The geology at Abercromby is very favourable for gold mineralisation, with high-grade gold interpreted to be hosted in dolerite sill associated with granophyric zone - similar to gold deposits at St Ives and across the Kalgoorlie Golden Mile. Historic drilling at Abercromby has intersected multiple thick intervals of high-grade gold mineralisation to confirm the presence of a large high-grade gold system. BMG holds 100% of Abercromby, which comprises the gold and other mineral rights (ex-uranium) of two granted mining leases (M53/1095 and M53/336).

Contact:

Bruce McCracken

Tel: +61 8 9424 9390

Email: enquiry@bmgl.com.au

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