BMG - 10,000m drill program to expand 518k ounce gold resource starting this month

Our WA gold Investment BMG Resources (ASX: BMG) just confirmed drilling at its 518K ounce Abercromby project would start “on or about 24 February 2026”.

The drill program is on BMG’s 100% owned Abercromby project in WA with:

• A 518k ounce gold resource (with gold at A$7,100 per ounce).
• In the Famous WA “Northern Goldfields” gold region hosting many, multi-million ounce gold deposits.
• Sitting within trucking distance to two giant mills - with one mill owner planning to raise $200-300M via a ~$400M ASX listing and has publicly stated they are looking at “growth initiatives, and/or corporate transactions”. (and BMG already has a toll treatment MoU with them - more on this in a second)
• “Scoping study into a potential low-capex, fast payback mining proposal” due this quarter
• and the “moonshot” exploration theory - BMG says the project could host a similar style deposit to the $2.5BN, 2.1M ounce “Never Never” discovery made by Spartan Resources…

(BMG also has another “moonshot” gold exploration project which could be a possible extension of a 4.5M ounce gold deposit - but today’s announcement is all about Abercromby)

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BMG will be drilling in and around the existing 518K ounce gold resource, where some of the previous holes have had some seriously strong hits:

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Importantly though, BMG confirmed the diamond holes would test for extensions at depth - which IF they come in could add more weight to the whole “Never Never” style ductile gold exploration upside on the project.

For some context - “Never Never” was the 2.1M ounce discovery Spartan Resources made that led to its $2.5BN takeover only 2.5 years after discovery.

Here is where BMG is planning to drill relative to its resource - what we will be looking out for is if the gold extends at depth:

(source)

BMG also confirmed that some of the drill program would be going into testing extensions to the south of the existing resource.

So we could see BMG add size/scale to its already large resource after this round of drilling is done.

Here is an image we marked up showing where those targets to the south sit:

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Yesterday, we listened to a webinar run by BMG where the new CEO Ben Pollard and Chair John Prineas detailed what to expect over the next 12 or so months.

This was the firsts time hearing from CEO Ben, so it's a good watch - especially considering he just bought 25M shares by exercising 2c options recently. (source)

(source)

Check out the full presentation here: BMG Resources (ASX: BMG) Investor Webinar | Strategy, Drill Program & 12 Month Milestones

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Here are the 10 Reasons We Invested in BMG

1. BMG has an existing 518K ounce gold resource

We think the current resource underpins BMG’s current market cap. With some drilling, we think BMG could grow the resource to over 1M ounces (which is in line with management incentives). We think the current resource more than underpins BMG’s current market cap at ~$25M.

2. Blue sky exploration upside on the existing resource

BMG’s theory is that its existing resource could be a part of a “Never Never” style ductile gold structure. The 2.1M ounce Never Never deposit discovered by Spartan Resources was taken over for ~$2.5BN only 2.5 years after discovery.

3. Existing resource sits on a granted Mining Lease

BMG’s 518k ounce resource sits on granted Mining Leases. BMG also has an MoU in place with a nearby plant operator, so technically BMG could start mining its existing resource fairly quickly.

4. Nearby plant operator is planning to complete a $400M relisting on the ASX

The plant operator BMG has an MoU in place with (Wiluna Mining) is planning to raise $200-300M and relist on the ASX. We think that cash and more market interest in the region will be good for BMG.

5. BMG’s other project is next door to a 4.5M ounce gold deposit

BMG also holds ground next door to Minerals 260’s 4.5M ounce gold deposit in WA. Minerals 260 (in its own words) thinks its deposit extends west - which is directly where BMG’s ground sits. BMG is yet to drill this ground.

6. We are backing John Prineas from St George Mining here

We Invested in John’s other company St George Mining (ASX: SGQ), and it has been one of our best performers for 2025, up 560% from our Initial Entry Price.

(past performance is not an indicator of future performance)

7. The ASX likes WA gold companies

Australian investors understand WA gold and many have made money from company-making discoveries in WA. This makes it easier for the market to digest a new WA gold stock, and when the market gets behind it share prices can really start to move aggressively.

8. We are Investing alongside Tribeca Investment Partners

We have had success Investing alongside Tribeca with Locksley Resources up 84% and Rapid Critical Metals up 89% from our Initial Entry Price.

(past performance is not an indicator of future performance)

9. Gold price is trading near its all time highs

Gold recently hit new all time highs of ~US$5,600 per ounce and is now trading at ~US$4,655 per ounce (~A$6,700 per ounce) which is well above the typical all in costs to produce gold. We think junior developers with existing resources could run in this gold price environment.

10. New experienced CEO appointed to drive the business forward

Ben Pollard was just appointed CEO of BMG. Ben has more than 25 years experience in exploration and mining in WA, bringing an extensive network of industry contacts.

Ben has been exploration manager at BMG since 2020 so will be very familiar with these assets and be ready to hit the ground running as CEO.

We like Ben’s experience in this part of the world having worked for companies like and delivered value for shareholders of small companies.

Ultimately, we hope the above reasons contribute to BMG achieving our Big Bet which is as follows:

Our BMG Big Bet:

“BMG re-rates to a market cap >$250M+ by: expanding its gold resource at Abercromby to exceed 1M+ ounces, by quickly entering production using a toll treatment model for its existing resources, OR making a discovery at its Bullabulling project.”

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 BMG Investment Memo.

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

Check out our launch note, where we go into more detail why we made BMG our most recent Investment last week: Our Latest Investment: BMG Resources (ASX:BMG)