Highlights

  • BMG Resources has launched diamond drilling as part of a major 10,000m resource development program at its Abercromby Gold Project in Western Australia.
  • The campaign is operating 24/7, with approximately 1,100m of drilling already completed.
  • Drilling targets high-grade extensions to the existing 518,000oz Gold Mineral Resource, which remains open at depth and along strike.
  • The company is finalizing a Scoping Study, with initial assay results expected within 4 to 5 weeks.
  • Shareholders will vote on 15 April 2026 to change the company name to "WA Gold Limited" (proposed ticker: WAU).

BMG Resources Limited (ASX: BMG) shares jumped 7.69% to AUD 0.028 on 1 April 2026, extending a massive 180% rally over the past year. Today’s uptick follows news that the company has transitioned to diamond drilling to test the deep, high-grade potential of its Capital Deposit, moving closer to its goal of becoming a near-term gold producer.

Deep Targets and High-Grade Potential

After successfully completing reverse circulation (RC) pre-collars to an average depth of 130m, BMG is now utilizing diamond rigs to reach total hole depths of between 275m and 500m. This phase is critical, as geological modeling suggests that gold grades at Abercromby increase at depth—a characteristic similar to major regional discoveries like the Never Never deposit.

The current Mineral Resource Estimate (MRE) at the Capital Deposit stands at:

  • Total Resource: 11.12Mt @ 1.45 g/t Au for 518,000 oz Au.
  • Indicated: 4.15Mt @ 1.23 g/t Au for 165koz Au.
  • Inferred: 6.96Mt @ 1.58 g/t Au for 353koz Au.

A Proven Pathway to Production

Beyond exploration, BMG is aggressively de-risking the project's economic viability. Key development advantages for Abercromby include:

  • Infrastructure: Located within trucking distance of existing operating plants; an MoU is in place with Wiluna Mining for potential processing at the Matilda CIL plant.
  • Metallurgy: Test work confirms the gold is "free milling" with high recoveries ranging from 93% to 95%.
  • Mining Profile: The deposit begins near the surface, making it highly amenable to open-pit mining.

CEO Ben Pollard noted that the company is focused on a "measured approach to resource development" while ensuring that every meter drilled adds tangible value to the upcoming Scoping Study.

Rebranding to "WA Gold Limited"

To better align its corporate identity with its flagship assets, BMG has proposed a name change to WA Gold Limited. This move, subject to shareholder approval on 15 April, reflects the company's commitment to the Western Australian gold sector during a period of robust metal prices.

What This Means for Investors?

The commencement of diamond drilling is a high-conviction move by BMG to prove that Abercromby is a much larger system than currently defined. By targeting the "roots" of the Capital Deposit where grades are expected to improve, the company is aiming for a resource upgrade that could significantly alter the economics of its pending Scoping Study. With a name change on the horizon and results due in May, BMG is positioning itself as a high-growth gold play in a tier-one jurisdiction.