BMG Resources retracts scoping study

BMG Resources Limited (ASX:BMG) has retracted its previous announcement regarding the Abercromby Gold Project Scoping Study. The company acknowledged that it lacked a reasonable basis for the forward-looking statements due to a high proportion of inferred resources. BMG plans to conduct infill drilling to potentially upgrade resource classifications.

Summary of BMG Resources' announcement

BMG Resources Limited announced the retraction of its Scoping Study for the Abercromby Gold Project due to non-compliance with ASX guidelines on forward-looking statements. The original study included projections based on a significant portion of inferred mineral resources, which the company has now deemed unsupported. BMG plans to undertake an infill drilling program aimed at upgrading the resource classification from Inferred to Indicated, potentially leading to a revised Scoping Study. The retraction underscores the necessity for mining companies to rely on a solid foundation for financial and production forecasts.

Executive commentary on retraction

BMG has determined that it does not have a reasonable basis for the forward-looking statements in the Scoping Study Announcement, as required under ASX Guidance Note 31. As such, BMG retracts all production targets and forecast financial information included in the Scoping Study Announcement.