BMG Resources Limited (ASX: BMG) has identified multiple targets showing structural and magnetic features at the Dragon Project located in the West Arunta region of Western Australia.
“Exploration ground in the West Arunta is highly sought after following the significant Luni discovery by WA1 which has spectacularly propelled that company’s share price from 20 cents at the time of its IPO in February 2022 to more than $12 today – a market capitalisation of more than $770 million,” John Prineas, BMG’s Non-Executive Chairman, said.
“BMG has an outstanding opportunity to acquire a large landholding adjacent to WA1’s project – an opportunity that we believe could provide our company with a pathway to potentially replicate some of WA1’s success.
“Our ongoing review of exploration data for the West Arunta region has delivered very positive findings with geological features identified at our Dragon Niobium-REE Project which show similarities to the geological setting for Luni and other mineralised carbonatites in the region.
“Several coincident structural and magnetic features, often with a supporting elevated gravity feature, have been identified across the Dragon Project area – this is a textbook signature for mineralised carbonatites. Importantly, these targets are located along or near structures that could have served as conduits for potential carbonatite intrusions.
“Our exploration review of the Dragon tenure is ongoing and we are excited to see potential ‘look-a-like’ targets to the Luni-style carbonatite emerging on this under-explored ground.”
West Arunta Region
The West Arunta region is an emerging world-class district for Niobium-REE mineralisation following major discoveries there by WA1 and Encounter Resources Limited (ASX: ENR).
Other companies – including Rio Tinto (ASX: RIO) (in its own right and also in joint venture with Tali Resources), CGN Resources (ASX: CGR) and MTM Critical Metals (ASX: MTM) – are actively exploring in the West Arunta.
BMG’s Dragon Project represents a large, contiguous landholding of 1,470 sq. km – a project of impressive scale and strategically well-located near successful explorers.
Dragon Niobium-REE Project
Historical exploration in the West Arunta region is very limited. BMG has reviewed Government generated geophysical surveys as well as published exploration reports by historical and current explorers including WA1 and Encounter.
Where discoveries have been made, there is a clear correlation of mineralised carbonatites with strong magnetic stratigraphy along major crustal structures.
At the Dragon Project, several areas have been identified where strong magnetic features are located against major faults.
These areas are considered highly prospective for potential carbonatites and represent priority exploration targets.
BMG proposes to complete close-spaced, high resolution geophysical surveys in due course to better delineate drill targets. Further on-ground field mapping as well as geochemical sampling of outcrop and soils will also be completed.
BMG believes that systematic exploration at the Dragon Project using modern exploration methods offers an excellent opportunity for a new discovery.
Niobium – Background
Niobium is classified as a critical metal by the Australian Government and a strategic metal by the US Government, recognising its importance to strategic sectors like defence, clean energy and aerospace – as well as its severe supply concentration.
The primary use of niobium today is to produce Ferroniobium (FeNb). The largest application is for use as an alloy in the steel industry to improve the strength and mechanical properties of steel.
A key growth market for niobium is the production of Niobium oxide which is increasingly used in technology and clean energy. Niobium oxide is already widely used for superconductive magnets and capacitors, MRI equipment and optical lenses. These are all high growth markets.
Recent developments in lithium-ion battery technology have created a new and rapidly expanding market for niobium. The use of niobium enables the development of batteries with fast charging capabilities, stable delivery of high energy densities, improved safety in longer durability and enhanced battery life.
Currently global supply is dominated by Brazil (90% of global production), creating very strong market interest in any opportunity to diversify supply sources to other Tier 1 jurisdictions like Australia.
The Dragon Project provides BMG with an opportunity to be involved in a critical metal with an exciting growth future and which is making a contribution to the clean energy transition.
