BPM starts phase 2 drilling next to $2.2BN Capricorn Metals
Our micro cap exploration Investment BPM Minerals (ASX: BPM) just kicked off its second phase of drilling at its Claw gold project.
BPM’s Claw project sits immediately to the south of $2.2BN Capricorn Metals 3.24m ounce Mount Gibson gold project.
BPM’s drill program is for ~3,000m of Aircore (AC) and Reverse Circulation (RC) drilling at the Louie Prospect.
Louie is a ~1km long target and sits right along the border that BPM shares with Capricorn Metals.
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Context on BPM’s drill targets:
First of all, Capricorn’s Mount Gibson project is made up of several open pit mines.
The open pit mines come together to form a ~3.24M ounce project wide JORC resource.
All of the open pit mines (shown as black dots on the image below) run along a north-to-south trend and are along strike from BPM’s project.
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So BPM isn't necessarily looking for an extension to Capricorn’s gold project - instead, it is looking for repeat structures along that north-south trend.
If BPM can find even one of these structures, considering the company’s tiny market cap we think it would be a great result for BPM, and the market could reward it.
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What’s next for BPM?
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Going into this drill program our bull/base/bear case expectations are as follows:
- Bull case = BPM finds a 5m+ intercepts with gold grades greater than 1.5g/t - this would be a really good result for a maiden drill program especially considering the Capricorn’s JORC is based on grades of ~0.8g/t gold.
- Base case = Grades above 0.8g/t but thin intercepts - any hits with grades above 0.8g/t no matter how thin will be a good start to drilling at the project and be enough for us to want to see BPM run at least one more drill program at the project.
- Bear case = Grades <0.5g/t - this would probably mean any gold found is too low of a grade to become an economic mine.