Western Australian focused gold and lithium explorer BMG Resources Limited (ASX: BMG) is pleased to announce it has exercised its Option to acquire the Bullabulling Project, located 25km west of Coolgardie in the Eastern Goldfields of Western Australia, following highly encouraging results from the maiden RC drilling program.
Initial assays from the recent drilling program undertaken by BMG1 have returned anomalous lithium and gold intercepts, confirming strong prospectivity for both lithium and gold within the tenure. Details of completed drill holes and assays received are contained in Schedule 1 to this announcement. Historic exploration identified widespread pegmatite occurrences within the Project tenure, several of which contain lithium mineralisation assaying greater than 1% Li2O. Work undertaken by BMG prior to the RC campaign confirmed the LCT characteristics of these pegmatites through geochemical assay ratio analysis2 . 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.
BMG Resources Managing Director Bruce McCracken said: 'BMG is delighted to bring the Bullabulling Project into our portfolio of Western Australian gold and lithium projects and secure a foothold in the emerging Coolgardie lithium and gold region. 'This highly prospective lithium and gold project presents a robust investment case for BMG, and an outstanding opportunity to generate shareholder value through early-stage exploration. 'The Coolgardie region boasts a long history of mining where the ground is well understood. Bullabulling is located close to infrastructure and major discoveries, including Mt Marion to the east and Nepean and West Spargoville to the south.
Lithium results returned to date show early potential for the discovery of significant lithium-bearing pegmatites, and the outstanding drill intercept in the first gold hole south of historic workings at Poolmans is highlyencouraging. 'Assays are expected in coming weeks that will drive news flow and inform our strategy with the drill bit as we pursue further exploration success.'
Lithium
The southern traverse of 8 holes at Ubini intersected highly fractionated pegmatites in holes 23BBRC012 and 23BBRC016 (3m @ 0.31% Li2O from 12m and 4m @ 0.16% Li2O from 13m respectively). The intervals also contained elevated associated elements (23BBRC012 3m @ 555ppm Cs, 1,556ppm Rb and 55ppm Ta from 12m and 23BBRC016 4m @ 219ppm Cs, 738ppm Rb and 12ppm Ta from 13m). The interval in 23BBRC012 is interpreted to be an extension of the outcropping pegmatite some 240m to the north-west which returned 1.7% Li2O and 1.09% Li2O from previous rock chip sampling. While probe drilling for the down dip continuation of the Red Panda outcrop has so far been unsuccessful, tracing the roots of this occurrence remains a priority. Drilling of the northern fence of holes at Purple Panda has demonstrated significant pegmatite occurrences underlying the strong rubidium anomalism in soils. While these pegmatites have not returned economically significant rocks with respect to lithium in the results so far, their presence will be considered as part of a wider metallogenic model to aid in exploration.
Next Steps
Completion of the acquisition of Fairplay Gold Pty Ltd, the vehicle which holds the Bullabulling Project, is expected to be finalised in the next week. The purchase price of $200,000 in cash and 15 million BMG shares will be paid at Completion. The vendors will hold the consideration shares in voluntary escrow for a period of 12 months. Refer to ASX Announcement on 15 February 2023 'BMG Expands WA Lithium and Gold Footprint with Project Acquisition' for the details of the Option. Once all the outstanding assay results are returned and analysed, BMG anticipates a follow up drilling program to further test the strike extent of the anomalous LCT pegmatites identified from this current drilling program, together with other priority targets that remain to be drilled. This announcement has been authorised for release by Bruce McCracken, Managing Director of BMG Resources Limited
Contact:
Tel: +61 8 9424 9390
Email: enquiry@bmgl.com.au
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
Cautionary Note Regarding Forward-Looking Information
Forward looking statements are statements that are not historical facts. Words such as 'expects', 'anticipates', 'believes', 'potential', 'may' and similar expressions are intended to identify forward looking statements. These statements include, but are not limited to, statements regarding future production, resources and reserves and exploration results. All such statements are subject to risks and uncertainties many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in or implied by the forward looking statements. Investors should not construe forward looking statements as guarantees of future performance due to the inherent uncertainties therein.
About BMG
BMG Resources (ASX: BMG) is developing its portfolio of 100%-owned projects located in Tier 1 and emerging gold and lithium districts in Western Australia. At BMG's flagship Abercromby Gold Project (11.12Mt @ 1.45 g/t Au for 518koz Au), located in the Agnew-Wiluna Greenstone Belt, the Company is pursuing a dual exploration strategy targeting Resource growth at the Capital Deposit, and pursuing a pipeline of regional targets that are highly prospective for further Capital-style mineralisation. The Invincible Gold-Lithium Project is located in the central Pilbara and hosts 12.5km of the Warrawoora shear. The South Boddington Gold Project, located in the Saddleback Greenstone belt that hosts the giant 40Moz+ Boddington deposit. BMG has recently exercised its option to acquire a 100% interest in the Bullabulling Gold-Lithium Project, located in the emerging Coolgardie gold and lithium region. Completion of the acquisition is anticipated to be finalised shortly.
BMG RESOURCES LIMITED 
