BMG Resources Limited reported that metallurgical test work conducted on Abercromby core samples have confirmed its free milling status and therefore amenability to conventional carbon-in-leach (CIL) processing, with high gold recoveries achieved. The study was conducted on drill core samples representative of fresh Abercromby mineralisation and results are consistent with, and exceed those from previous, metallurgical test work undertaken at Abercromby. This latest testwork was completed by Perth based Extreme Metallurgy and reviewed by GR Engineering Services, which has been retained by BMG to advise on project development for Abercromby.

Test work was conducted on two 50kg, quarter core composites from BMG's Abercromby Project, and followed a typical gravity/cyanidation flowsheet, one that is ubiquitous to most mills in WA. Samples were selected by BMG's geological team, comprising intervals of fresh, competent, mineralised core, interpreted to be representative of the greater mineralised system and located within the main mineralised portion of the deposit. Mineralisation is characterised by silica, pyrite, carbonate altered basalt and dolerite, punctuated by quartz and quartz carbonate stockwork veins.

Head assays for the two composite samples were 1.35g/t and 1.87g/t respectively, with low silver content and low levels of deleterious elements of Copper and Arsenic. Gravity and Cyanidation Testwork: Both samples were tested via typical gravity gold recovery followed by cyanidation by Metallurgy Laboratories in Welshpool. Both composites achieved high gold recoveries of 93.00% and 94.94% for composite 1 and 2 respectively, each with low gold in tails.

Reagent Consumption: All testwork was conducted in Perth tap water as no site water was available at the time of the test. While the reported reagent consumptions are considered low processing in saline/hypersaline water, in practice may increase both lime and cyanide consumption due to water chemistry changes. Water quality detail is still scarce for the deposit but will be addressed with additional test work in due course to better understand the impact it will have on reagent consumption.

SUMMARY: The results are a strong indicator of the gold mineralisation being amenable to high overall gold recovery under typical processing conditions. The two composites are free milling and achieved high overall gold recovery, varying from 93-95%. They also had some free gold, as the gravity recovery varied from 34-41%.

The gravity tails (leach feed) also showed good leach recoveries, with a majority of the leaching occurring in the first 8hrs, however the samples continued to leach up to 48hrs. Lime and cyanide consumption was also low. It would be expected that when processing in saline/hypersaline water conditions that these would increase, and further testwork using site water will be completed in due course.

Overall, the sighter tests conducted on these two composites show that they are free milling and are amenable to typical low-cost metallurgical processes for gold ores common in Western Australia. Extrapolation of these results implies high gold recoveries for the entire deposit when treated via a typical gravity gold recovery and cyanidation process. NEXT STEPS: Future work is planned to optimise processing parameters as BMG moves closer to economic evaluation and eventual exploitation of the deposit.