BMG Resources, an Australia-based gold exploration company, is set to acquire the Bullabulling project in a move to expand its Western Australian lithium and gold footprint.

In this connection, the company has entered into a binding option agreement to acquire a 100% interest in the project, which is located nearly 25km west of Coolgardie in the Eastern Goldfields.

The exploration company currently owns the Abercromby gold project, Invincible gold project, and the South Boddington gold project, all located in Western Australia.

BMG Resources has secured an exclusive option for the project, which will be exercised by acquiring all the shares in Fairplay, which owns all tenements for the asset, or by directly acquiring all the tenements that make up the project.

The publicly-listed gold exploration company has an exclusive option period of four months, that is until mid-June 2023. The option fee is A$40,000 ($27,604) in cash, while the purchase price is A$200,000 ($138,019) in cash and 15 million shares of the company.

Located immediately next to and along strike from the multi-million ounce Bullabulling Gold Mine, the 185km2 project is said to have highly prospective lithium and gold targets.

BMG Resources plans to carry out groundwork to evaluate and validate the potential for economic lithium-cesium-tantalum (LCT) pegmatite mineralisation at the project. After the option period, the company intends to lay the groundwork to undertake exploration at a larger extent.

The gold explorer claimed that multiple LCT pegmatites have been mapped across the project tenure with a high priority pegmatite corridor of over 4km that remains open along strike.

It also said that several gold occurrences have been confirmed in historic exploration across the project tenure, however, there has been limited follow-up.

BMG Resources managing director Bruce McCracken said: “The Bullabulling project is an excellent opportunity to secure a material foothold in a largely unexplored area of the highly attractive Coolgardie lithium and gold district and is a complementary addition to our portfolio of Western Australian exploration projects, including the high grade Abercromby Gold Project where the Company is targeting a maiden resource.

“This highly prospective project hosts confirmed lithium bearing pegmatites and gold and shares geological similarities to other Goldfields lithium deposits like Mt Marion to the east and Nepean to the south.”