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.

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.

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.

What’s next for BPM?

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.