BPM: First result from giant WA gold prospect - 4m at 20.57g/t gold and 8m at 9.23g/t gold. Here’s what we want to see next.

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 2,803,550 BPM Shares at the time of publishing this article. The Company has been engaged by BPM to share our commentary on the progress of our Investment in BPM over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs. Any forward-looking statements are uncertain and not a guaranteed outcome.

Two drill holes in...

Our $25M capped Investment BPM Minerals (ASX:BPM) just hit 4m at 20.57g/t gold and 8m at 9.23g/t gold:

(source)

Epic at a first glance:

What we don't know yet is IF BPM has hit isolated pockets of gold OR clipped the edge of something bigger - but we will soon, with a stream of assay results to follow this quarter and next.

Going into this drill program we had been comparing BPM’s giant undrilled target, a ~6km long ‘gold in soil’ anomaly, to two big gold discoveries in Western Australia.

The 8M ounce Tropicana gold mine and the Glenburgh discovery by $1.5BN Benz Mining:

(source)

BPM’s Bonnie & Clyde prospect covers a similar footprint BUT until now, had never been drilled before.

Below again is BPM’s first ever gold hit at Bonnie & Clyde, AND how many drill results are yet to come in (38 holes worth).

What we DON’T know is whether BPM has hit isolated pockets of gold today OR clipped the edge of something bigger...

That’s what the next batch of assays will tell us hopefully inside the next few weeks - the holes are drilled and assays are already in the lab.

The bull case would be seeing this (this would be an incredible result if it happened):

(source)

Of course this is complete speculation on our part - merely what we would like to see as long term BPM Investors - there might not be any gold at all.

It’s important to note that this is NOT a “twin-hole” or a “director’s special” - when explorers drill parts of a project that have been drilled before - knowing they will hit something good...

And we know WA gold projects have been drilled a lot over many decades.

However this is the first time ever that BPM’s ~6km long gold in soil anomaly has ever been drill tested.

BPM hasn’t labelled it a discovery yet - but we will take 4m at 20.57g/t gold and 8m at 9.23g/t any day of the week for only the second hole into a giant target like this.

BPM already has 38 holes completed - meaning we could see the results from 36 other holes reported in the next few weeks.

What we do know so far is that:

• The gold is in basement rocks
• The gold is directly under the soil anomaly
• It’s beneath 15-30m of cover
• It’s in the same high grade metamorphic rocks that host Tropicana.

So the soil anomalies seem to be working so far in terms of pointing to gold below.

Let’s see what else BPM finds across those four other Bonnie targets too - those targets are separate to the drill hits announced today:

(source)

For a company of its size (market cap of ~$25M), BPM has a decent amount of cash too...

BPM had $5.3M cash at 30 September 2026 and just had $3.0M in options exercised - so somewhere around ~$8.3M of cash. (source)

So it's very unlikely we will see trading halt + cap raise shenanigans + painful dilution before the next batch of assays can show us whether or not BPM’s just made a big new WA gold discovery or not.

Sorry brokers...

The ASX gets behind gold discoveries in WA - so success for BPM could re-rate the stock like we have seen with Benz Mining

Going into this drill program we were comparing BPM’s giant target (~6km long soil anomaly) to two big discoveries in WA:

1. The 8M ounce Tropicana gold mine owned by $59BN AngloGold Ashanti and $4.7BN Regis Resources - mainly because they share the same geology + same belt + BPM’s ground was once owned by the guys who discovered Tropicana,
   
   AND
   
2. The 510k ounce Glenburgh discovery (with a 10-12M ounce exploration target) made by $1.5BN Benz Mining. (source)

(source)

Tropicana was a long time ago BUT the Benz story has been an incredible recent win on the ASX.

Up from ~18c to $5.56 (at its peak) - Benz is currently capped at $1.5BN:

(source)(source)(source)(source)(source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Why are we mentioning a $1.5BN capped company when talking about BPM?

We think the Benz story is relevant to BPM because its re-rate has happened in current market conditions AND because the stock had a lot of doubters along the way.

So a lot of people sat on the sidelines watching the stock moon over the last 18 months.

We think any residual FOMO left over from the people who missed Benz, could start looking at BPM (especially if the next batch of assays extend the worm and BPM officially calls it a discovery).

We have already seen two institutions take cornerstone positions in BPM

Terra Capital and Tribeca Investment Partners came onto BPM’s register just after the Bonnie & Clyde tenements were granted (at 23c per share - so above the current price):

(source)

Fund manager Tom Woolrych from Deutsche Rohstoff AG was even talking up the target back in January as something he is very excited about in his PA (Personal Account). view here

He then went back on the Money of Mine podcast in late September this year.

And did a four minute bull take on BPM - which was introduced as “the first one on, and maybe the only one on this list, that isn’t actually a TSX or Canadian company”. (watch from 1:05:10)

(source)

It's highly likely that he (and the Tribeca/Terra guys are reading and re-reading today’s results).

All three of those (IF they like what they see) have the capacity to follow through and back a big discovery IF BPM declares one with its next batch of assays.

Terra manages a natural resources fund so can keep adding to their position IF they want, Tribeca cleaned up on Hycroft Mining in the US (a gold and silver stock) so will have cash to deploy into something else that has a high potential return.

(Or maybe Tom - the fund manager who called Azure Minerals at 28c before its $3.70 takeover puts BPM into his fund...)

Both of those guys will be leaning forward in their chairs waiting for the next batch of assay results now:

No doubt it's early days right now - only one of the two holes hit gold and who knows if this is from the centre of the deposit, an isolated hit OR BPM just clipping the edge of something bigger.

No one knows at the moment.

BPM right now has a market cap of ~$29.4M, cash of ~$8.3M ($5.3M cash at September 30 + $3M from oppies exercised at 15c confirmed today). (source)

So BPM is only trading at an enterprise value of ~$21M.

Hopefully that's a low enough EV to persuade any of the nervous holders to put their sell orders away and hold into the next batch of results.

(Here it is again - sorry):

While we wait for those assays - BPM also has a maiden JORC resource coming on another project

The 6km long Bonnie & Clyde prospect isn't the only target BPM can drill chasing an 8M ounce Tropicana look-alike.

(source) (source)

BPM has 75km of strike within its project, and has a pipeline of other drill targets.

This other prospect area is where BPM was drilling immediately prior to the current drilling at Bonnie and Clyde, called “Beachcomber”.

That’s where there have been hits like 3m @ 65.8g/t gold and 9m @ 7.77g/t gold AND where BPM has assays pending from right now.

BPM is aiming for a maiden JORC resource on that project in H1-2027. (source)

Looking at the image below - BPM will basically be getting more data over ~300m of strike and ~250m of depth.

(source)

Assay results from this drill program are expected to come through during the quarter.

Any find here - even if it's a few hundred thousand ounces of gold, could start to bring a lot more interest in the other targets BPM has sitting across its ~75km of strike.

Then BPM can use the interest in the stock (and its bigger market cap) to have a real crack at making a large new discovery on completely undrilled targets.

Interestingly, that fund manager we mentioned earlier (Tom Woolrych from Deutsche Rohstoff) actually said in that Pod (here):

“But BPM is one where you see, okay, 30 million, that’s probably fair valuation given that they’ve got Beachcomber... it’s probably sub a million ounces, right? So that’s there. It’s pretty well known, pretty well drilled out. So then you could really launch this thing by getting a good hit at Bonnie and Clyde.”

Nicely put...

Below is BPM’s broader ground package where there is still a lot of work to be done to fully investigate potential discoveries:

(source)

With BPM’s enterprise value at just ~$21M, all we really need is for one of these targets to come in as a major new discovery and we think the market cap of BPM could multiply from where it is today.

No guarantees any of BPM’s targets turn into major discoveries - but for BPM to achieve our Big Bet we will need the company to make a material discovery as follows:

Our BPM Big Bet:

“BPM discovers and defines a large resource, leading to a long term re-rate in the company’s share price by >1,000%”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). The scenario is speculative and does not represent a valuation or forecast. There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including exploration risk, Heritage delay/permitting risk and commodity price risk - just some of which we list in our BPM Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

What’s next for BPM?

🔄 Bonnie & Clyde targets (Drilling underway now)

After today’s announcement the main thing we want to see is the assays from the next batch of holes in and around today’s results.

Here are the catalysts we will be tracking:

• ✅ Key tenement granted
• ✅ Heritage survey
• ✅ Soil sampling
• ✅ Geophysical survey results.
• ✅ RC drilling begins.
• 🔄 Diamond drilling (drilling a few deeper holes later this quarter)
• 🔄 IP survey (looking for targets at depth)
• 🔄 Assay results (Q4-26 AND Q1-27)

🔄 Beachcomber Phase 3 drilling

As mentioned earlier, here we want to see BPM both infill and extend the gold discovered with BPM’s third round of drilling on this prospect.

Here are the catalysts we are tracking across this prospect:

• ✅ Drilling commenced
• ✅ Drilling completed
• 🔄 Assay results - expected Q4 2026
• 🔄 Maiden JORC resource estimate - expected H1 2027

What could go wrong?

In the short term the key risk for BPM will still be “exploration risk”.

BPM’s announcement today doesn’t guarantee that any of the future assay results follow up with similar results.

There is a real possibility that BPM hit nothing (or sub-commercial grades) from the next batch of assays and the probability of this being a NEW discovery takes a big hit.

In that case - especially if the share price runs after today’s news - we would expect to see BPM’s share price re-rate materially lower.

Exploration risk

BPM is still a long way from a discovery, and even further from defining a resource. Just because AngloGold drilled a few holes back in the day, it doesn’t guarantee BPM will hit anything significant in its follow-up drilling. BPM is an early-stage exploration company, and could come up empty-handed.

Source: “What could go wrong” - BPM Investment Memo 21-Aug-2025

Other risks

Like any early-stage exploration company, BPM carries significant risk, here we aim to identify a few more risks.

Target scale and geological continuity remain major hurdles. With only two holes reported at Bonnie & Clyde and just one hitting gold, these thin high-grade intercepts could easily prove isolated rather than part of a continuous mineralised system.

Soil anomalies also carry a high statistical failure rate in exploration. Historical work and structural mapping provide clues, but there is no guarantee these surface geochemical signatures will translate into an economic deposit.

Resource definition risk is another factor to watch at Beachcomber. BPM is targeting a maiden JORC resource in H1 2027, but pending assays might fail to demonstrate the volume or grades necessary for a commercially viable project.

Future funding and dilution risk will inevitably resurface as exploration expands. While BPM currently holds roughly $8.3M in cash, testing multiple prospects across 75km of strike is capital intensive and could eventually require further dilutive capital raises.

Commodity price and junior resource sentiment risks also apply. A sudden pullback in the gold price or a broader market retreat from speculative micro-caps like we are seeing currently could weigh heavily on BPM’s share price regardless of drilling results.

Investors should consider these risks carefully and seek professional advice tailored to their personal circumstances before investing.

Our BPM Investment Memo

You can read our BPM Investment Memo in the link below.

We use this memo to track the progress of all our Investments over time.

Our BPM Investment Memo covers:

• What does BPM do?
• The macro theme for BPM
• Our BPM Big Bet
• What we want to see BPM achieve
• Why we are Invested in BPM
• The key risks to our Investment Thesis
• Our Investment Plan