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Highlights:

  • BMG Resources confirms receipt of all December 2024 assay results across two laboratories.
  • BMG trading 30% lower at AUD 0.0070 on 11 July 2025.
  • Company clarifies delays in reporting due to assay inconsistencies and re-testing requirements

BMG Resources Limited (ASX:BMG) has issued a detailed response to the ASX Aware Letter dated 8 July 2025, addressing queries related to the timing and disclosure of assay results from its December 2024 drilling campaign at the Abercromby Gold Project in Western Australia.

The company confirmed that while three diamond drill holes were completed in December 2024, assay results were not disclosed immediately due to concerns over the reliability of preliminary data. This cautious approach led BMG to conduct re-assays before informing the market.

BMG explained that the December 2024 drill program resulted in the completion of three holes (24ABDD001–003). Core samples were cut and submitted to two laboratories in separate batches on 20 February and 13 April 2025. Initial results termed “Preliminary Assays” were returned on 17 March and 8 May.

The preliminary results raised concerns for BMG’s technical team, especially in relation to drill hole 24ABDD003. Despite being located between two historical holes that had returned thick, high-grade gold intersections, the new hole yielded only a short 1.14m interval grading 2.77g/t Au. This discrepancy prompted the company to re-submit samples to an independent umpire laboratory on 3 June, with final results “Final Assays” received on 2 July.

BMG stated that the inconsistency between predicted geological models and assay outcomes warranted caution. Releasing potentially flawed data, according to the company, risked misleading investors and breaching ASX disclosure rules. Therefore, the results were withheld until verified. The company made its formal disclosure of all assay results on 11 July 2025, following internal review and data validation.

Responding to the ASX’s inquiry on whether visual descriptions of drill core should have been treated as material information, BMG reaffirmed its view that such observations without supporting laboratory assays do not meet the threshold for price-sensitive disclosure. The 23 December 2024 update included a disclaimer stating that visual assessments are not a substitute for assay results.

BMG also noted that the drilling activity reported in December covered a small subset of the broader Mineral Resource Estimate (MRE), and therefore did not significantly alter the company’s project valuation or risk profile.

Regarding its December Quarterly Report, BMG acknowledged that initial timelines for assay delivery then expected by mid-February were inaccurate due to delays from third-party contractors and changes in laboratory providers. The company claimed these estimates were based on good faith consultations at the time and issued corrections via ASX on 11 February 2025.

In its response to a February ASX price query, BMG clarified that samples had not yet been dispatched to labs as previously projected. The company attributed this delay to unfamiliarity with new contractors and subsequently took steps to improve oversight of the sampling process.

BMG Resources is a Perth-based mineral exploration company focused primarily on gold development in Western Australia. Its flagship Abercromby Gold Project, located in the Wiluna district, has attracted investor attention for its historical high-grade intersections and expansion potential.

BMG shares were trading 30% lower at AUD 0.0070 as on 11 July 2025.