BMG Resources Limited (ASX: BMG) (BMG or the Company) is pleased to advise that it has completed approximately 2,880m of drilling at the Company's 100% owned Abercromby Gold Project in the north-eastern Goldfields of Western Australia.

Abercromby is located on the Wiluna Greenstone Belt, one of Western Australia's most significant gold-producing regions with a gold endowment of +40Moz Au, and surrounded by Northern Star Resources' (ASX: NST) Jundee and Wiluna Mining's (ASX: WMX) Wiluna operations.

Commenting on BMG's first drill campaign at Abercromby, managing director Bruce McCracken said: 'This successful maiden campaign by BMG - and the first drilling to be carried out at Abercromby in more than 15 years - has given us strong confidence in the potential of this high-grade project. The objective was to better understand the geology and potential continuity of the gold mineralisation at the Capital prospect. 'We look forward to receiving the assay results before incorporating them into our planning for the next round drilling at Abercromby early in 2021.'

Preliminary drilling observations are highly encouraging

A number of drill holes intersected intervals of intense hydrothermal alteration with breccias containing quartz-carbonate-sericite veining with sulphides. This kind of mineralogy is known to be associated with gold mineralisation intersected elsewhere within the Abercromby project area.

A number of drill holes also intersected the basalt-gabbro contact, which is believed to be the lithological contact that acts as a control on gold mineralisation at Abercromby. Importantly, the zones of alteration encountered by drilling show a close association with this lithological contact. This is a significant geological finding that will assist in further targeting of gold mineralisation and resource definition drilling.

The Company awaits receipt of laboratory assays to confirm the extent of any gold mineralisation intersected, with first assays expected by late January 2021.

Drill campaign

BMG's maiden drill program at Abercromby was designed to test the nature and continuity of known gold mineralisation at the Capital prospect, which has yielded multiple thick high-grade gold intersections. 13 drill holes have been completed by BMG, comprising approximately 2,246m of RC drilling and 635m of diamond coring.

A number of planned holes were not completed due to time constraints and will be added to the 2021 drill campaign. Additional drilling at Abercromby will be planned once assay results are received and reviewed. Observations of drill hole data referred to above are based on visual interpretation and are, therefore, preliminary in nature. A conclusive determination of any gold or other metal values in the drill holes will be confirmed when laboratory assays are available.

About the Abercromby Project

The Abercromby Project is located on the Wiluna Greenstone Belt, one of Western Australia's most significant gold-producing regions with a gold endowment of +40Moz Au - second only to Kalgoorlie globally in terms of historic production.

The geology at Abercromby is very favourable for gold mineralisation, with high-grade gold interpreted to be hosted in dolerite sill associated with granophyric zone - similar to gold deposits at St Ives and across the Kalgoorlie Golden Mile. Historic drilling at Abercromby has intersected multiple thick intervals of high-grade gold mineralisation to confirm the presence of a large high-grade gold system. BMG holds 100% of Abercromby, which comprises the gold and other mineral rights (ex-uranium) of two granted mining leases (M53/1095 and M53/336).

This announcement has been authorised for release by Bruce McCracken, Managing Director of BMG Resources Limited.

Contact:

Bruce McCracken

Tel: +61 8 9424 9390

Email: enquiry@bmgl.com.au

Disclaimer

Forward looking statements are statements that are not historical facts. Words such as 'expects', 'anticipates', 'believes', 'potential', 'may' and similar expressions are intended to identify forward looking statements. These statements include, but are not limited to, statements regarding future production, resources and reserves and exploration results. All such statements are subject to risks and uncertainties many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in or implied by the forward looking statements. Investors should not construe forward looking statements as guarantees of future performance due to the inherent uncertainties therein.

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