BMG Resources Limited announced 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. 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' and the Pioneer Dome deposit (11.2Mt @ 1.21% Li20) of Essential Minerals. Tianqi Lithium Energy Australia, a joint venture between 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. Areas for high priority follow up are broadly defined by coincident rubidium anomalism, together with mapped pegmatites. 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. Gold and Nickel: The dominant mafic-ultramafic trend seen as a strong magnetic anomaly in the project area hosts a series of gold occurrences that have been mined historically on a small scale, especially at First Hit (excised). Regolith gold at the Peach prospect has returned solid gold grades from RAB drilling previously undertaken with data sourced from WAMEX including: 5m @ 2.5gpt Au from 36m; 2m @ 5.7gpt from 49m; 1m @ 3.02gpt Au from 37m, and 2m @ 1.71gpt Au from 41m. The ultramafic rocks in the north-eastern portion of the project are komatiitic in nature and grade into cumulate textures at depth (younging east). Sharing the same regional stratigraphy as other nickel deposits like Nepean and Widgiemooltha to the south of Coolgardie, the Bullabulling tenure provides BMG with bonafide prospectivity for nickel to compliment that of lithium and gold. BMG has an exclusive option to acquire a 100% interest in the Bullabulling Project either by acquiring all the shares in Fairplay (which holds all tenements for the Project) or by directly acquiring all the tenements that comprise Bullabulling Project. Key terms of the option are: Exclusive Option Period ­ 4 months from signing (until 14 June 2023). Option Fee - $40,000 cash. Purchase Price ­ BMG to pay $200,000 in cash and 15 million fully paid ordinary shares (Consideration Shares) in BMG. Voluntary Escrow ­ Vendors to voluntarily hold the Consideration Shares in escrow for 12 months. During Option Period ­ BMG will keep the project tenements in good standing and may undertake exploration and prospecting activities in order to evaluate them.