BMG Resources (ASX: BMG) has executed a toll treatment agreement with Wiluna Mining, facilitating the processing of ore from BMG’s Abercromby gold project in Western Australia. BMG Resources is an Australian-based gold exploration company focused on discovering and developing economically viable deposits. The deal allows for near-surface ore from Abercromby’s open pit to be treated at Wiluna’s Matilda processing plant, situated 20 kilometres north-east.
The agreement stipulates that BMG will deliver ore to the Matilda run-of-mine pad, retaining ownership during processing. Wiluna will handle crushing, processing, and delivery to a nominated refinery. Toll treatment fees will be determined by a fixed rate per tonne, adjusted based on the prevailing gold price and ore characteristics. The conventional carbon-in-leach (CIL) facility is expected to provide a favourable processing solution to support a scoping study for mine development at Abercromby.
BMG is progressing its scoping study to assess the optimal low-capex, high-margin scenario for potential mining at Abercromby. Non-executive chair John Prineas views the agreement as a significant step in the company’s transition from gold developer to producer. He noted that the company is excited to accelerate feasibility studies for mining at Abercromby, which could deliver significant value to shareholders, especially with gold prices at record highs.
Abercromby, located in the Agnew-Wiluna Greenstone Belt, has a maiden mineral resource estimate of 11.12 million tonnes grading 1.45 grams per tonne gold for 518,000oz. The resource starts near the surface and remains open at depth, allowing for potential open-pit development transitioning to underground mining.
