BPM WA Gold explorer: First drill results in. More drilling this quarter. “Moonshot” targets await...

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 4,040,333 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.

A couple of hours ago, US President Donald Trump said he “is not concerned with the decline in the US dollar”.

(source)

Here is how gold responded - shooting up 3.4% off what were already all time highs:

(source)

(3.4% is a big single day move for gold, especially off an all time high.)

Our WA gold exploration Investment BPM Minerals (ASX:BPM) has a massive 630km2 project about 150km east of Kalgoorlie.

BPM’s project sits along the same structures that host the 8M ounce Tropicana gold discovery (now a mine owned by $79BN AngloGold and $6.3BN Regis Resources):

(Source) (Source)

BPM has 75km of mineralised strike within its project, and has a pipeline of drill targets (years worth of exploration), but for now and in 2026, we are most interested in:

1. Beachcomber - Ground that already has high grade gold hits and is getting drilled out now.

BPM just drilled this target, hit gold in all 24 holes and has another drill program planned for February/March...

2. Bonnie and Clyde - Two nearby targets in a ~6km long gold in soil anomaly that has never been drilled before.

Bonnie and Clyde are two of the many completely undrilled targets where BPM can go for a “moonshot” new discovery...

(permitting and approvals in progress - this is going to be the big one once they start drilling it)

Here is what the soil anomaly targets look like in between the 8Moz Tropicana and 510koz Glenburg:

(Source)

This could be the footprint of a major gold system...

It’s not just us interested in Bonnie & Clyde -Tom Woolrych, fund manager from Deutsche Rohstoff AG, gave BPM and these targets a shout out on the Money of Mine podcast last week, when explaining why he personally bought BPM shares - listen here.

Always nice to hear fund managers give a shout out to the smaller stocks in our Portfolio.

BPM is currently capped at $27M and held $5.6M cash in the bank at the end of December, which gives it enough runway to plug a few more potentially company making holes into the ground.

BPM has very few shares and options on issue, which means the share price can move quickly on good news.

BPM’s broad plan is to grow defined gold resources (at Beachcomber and beyond) and make a discovery of new deposits along the broader 75km corridor.

Soil sampling results are imminent.

BPM is going out drilling again this quarter.

And that big Bonnie and Clyde target awaits drilling later this year...

BPM hit gold in all 24 holes at Beachcomber Prospect

Last week BPM delivered drill results from its first drill campaign at its Beachcomber Prospect.

BPM hit gold in every hole...

(Source - BPM announcement)

New soil sampling results are imminent, and armed with both sets of data, BPM is going to go drilling again this quarter.

BPM is drilling ground that was actually once held by AngloGold Ashanti.

After Anglo discovered Tropicana and redirected all its focus there, the ground BPM holds now was left alone for over a decade...

Last week BPM released results from the first 24 holes drilled on the project - hitting gold in every single hole:

(source)

Mineralisation is open both along strike and down dip...

BPM is already planning the next round of drilling - permits are in place for follow up drilling this quarter.

So the focus for the next round of drilling looks like it will be testing for extensions to the structures in the direction of the “open” arrows in the image below:

(source)

BPM expects to be drilling at Beachcomber again THIS QUARTER.

First target of many...

Beachcomber is just the first target of several opportunities - remember there is over 75km of strike for BPM to test.

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

(Source)

A big win for us over the next few months would be IF BPM can extend and replicate the Anglo hits showing that Beachcomber is bigger than first thought...

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...

BPM’s already got one giant undrilled target to test...

One of those regional targets that has already started capturing the hearts and minds of investors (including us) is the “Bonnie and Clyde” targets.

It even got a mention on the Money of Mine podcast by fund manager Tom Woolrych from Deutsche Rohstoff AG, who gave BPM a shoutout as a recent PA (personal account) purchase.

The BPM target Tom is most interested in is the Bonnie & Clyde target, which is not yet fully permitted.

Tom is keen to see that target drilled once permitting is sorted (so are we).

Check out the Money of Mine podcast section where BPM is talked about here.

It’s always good to see fund managers that normally look at bigger companies venture down to the micro cap end of town, and look at some of our Investments.

So - two targets (“Bonnie” and “Clyde”) sit across a ~6km long gold in soil anomaly... that has NEVER been drilled before.

On targets like these, BPM is drilling with no previous drilling results to guide them - so any big unexpected hits could bring with it a lot of market interest.

Especially considering the scale - a ~6km long soil anomaly.

Here is that image again from BPM’s most recent presentation comparing Bonnie and Clyde to both the Tropicana discovery (owned by $79BN AngloGold Ashanti and $6.3BN Regis Resources) and the recent discovery by $654M Benz Mining:

(Source)

Tropicana has been producing gold for over a decade and Benz Mining’s discovery triggered a ~540% move in Benz’s share price inside the last 12 months:

(Source)

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.

A quality team running BPM’s exploration here

Both BPM’s Bonnie and Clyde and the 8M ounce Tropicana are in proterozoic aged gold systems.

And if you don't know what that is... it's fine, neither do we.

The vendors of the assets (and now a part of the BPM exploration team) Luke Blais and Dr Ross Chandler would definitely know what all that means.

Both won the 2023 Explorer of the Year for a rare earths discovery at Dreadnought Resources.

(source)

Oh and BPM also has Dr Barry Murphy onboard as its consulting geologist...

Murphy was behind $2.2BN Predictive Discovery’s find in Guinea.

A small cap stock made a 5.5M ounce discovery which turned it into a ~$2.2BN valued acquisition in under 6 years...

Next for the regional targets are heritage surveys and permitting - once all that’s done we can finally see BPM start to drill the highest priority targets...

(source)

We think a gold discovery for BPM could be especially valuable because:

1. The market has an obvious comparison to point to when it comes to success in this part of WA (The 8M ounce Tropicana discovery), and;
2. The project is in an area that should get both corporate and market interest into it IF a discovery is made.

BPM’s project sits across major cross cutting shear zones - similar to Tropicana...

(We are not geologists, but just by looking at the map below, we can see there is correlation between the shear zones and gold deposits forming nearby)

(source)

BPM’s project is also close to multiple operating processing plants within a 200km radius of the project, which means if BPM is able to make a new discovery, it would have inherent value to the owners of those mills.

The positive from that is that there will be a fundamental valuation backstop on the discovery guided by what those mill owners are willing to pay for the resources in the ground.

Alternatively, BPM also gets multiple picks of mill owners it could negotiate toll-milling deals with.

(source)

Obviously it's still far too early to be thinking about who and which mill might take BPM ore, but it's nice to know there are options IF something is found.

At this stage the company has no defined resource estimates so talks of production are premature and more speculative than anything else.

Ultimately we are Invested in BPM to see the company make a material discovery and we are backing the BPM team to do just that.

We are hoping BPM can deliver our Big Bet 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). 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 development risk, country 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

Drilling at WA gold project 🔄

Last week BPM released the drilling results from its maiden drill program on its project - at the Beachcomber Prospect.

More soil sampling results are imminent.

And a follow up drill campaign is already in the works with 2,500m of RC drilling currently planned to get underway in late February/early March, so there isn’t long to wait for this - a few weeks really.

Here are the milestones we will be tracking here:

• ✅ Drilling starts
• ✅ Drilling completion
• ✅ Assay results
• 🔄 Soil sampling assays
• 🔲 Next round of drilling (to start in February/March)

Target generation works at WA gold project 🔄

We expect the market to really start taking an interest in BPM and its regional targets once all of the permitting is done on these parts of BPM’s project.

Especially as we get closer to drilling at the Bonnie and Clyde prospect...

For the regional targets here are the milestones we are tracking:

• 🔲 Heritage surveys
• 🔲 Tenement granted (expected in 2026)
• ✅ Soil sampling completion
• 🔄 Soil sampling results (“early 2026”)
• 🔲 Targets selected for further drilling

What are the risks?

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

BPM plans to start its second round of drilling in February/March, there is a risk exploration results fail to deliver up to market expectation.

Given there are historic drilling results on the project already, the market will likely build in expectations that BPM can at least replicate those results.

IF drilling fails to deliver any economic mineralisation OR extensions to the known gold mineralisation on its project the market could re-rate the stock 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 stock market investment, investing in BPM carries a range of risks which may affect the value of the company, some of which cannot be foreseen (this is the nature of risks).

Here we aim to identify a few more risks.

BPM is highly sensitive to movements in the gold price. A sustained downturn could hurt the project’s potential value and limit BPM’s ability to raise funds for exploration.

As a small company with a market cap of ~$27M, BPM is highly speculative. Even after recent share price moves, the current valuation may already reflect some of the anticipated upside.

Like all junior explorers, BPM is reliant on capital markets to fund exploration. Any future capital raise could dilute existing shareholders.

Finally, while WA is one of the more stable mining jurisdictions globally, there are always regulatory, environmental, heritage and permitting risks that could delay or prevent project development.

Investors should carefully consider these risks and seek professional advice suited 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