Perth, July 24, 2008 AEST (ABN Newswire) - ABM Resources NL (ASX:ABU) Announce a very active June Quarter 2008 achieved with the following results:
- Second and final tranche of funds received from the placement of 40 million shares at 10 cents each to raise gross proceeds of $4 million
- 1,300m diamond drilling program at the Erayinia JV Base Metals Project was completed
- RC drilling commenced at the Mimosa JV Gold Project in Mozambique
- Commenced rock chip sampling of newly acquired Kondole Hill and Myunga IOCG project located in Zambia
- Farm in on Broads Dam gold project awaiting grant of tenements
- IP survey completed by Altera Resources at the potential base metals discovery at Gascoyne JV Project; and
- Rehabilitation at Broads Dam and Broad Arrow was completed and the rehabilitation at the Norseman gold site commenced with the objective of releasing performance bonds totalling $561,000.
Drilling programs are planned to continue at the Mimosa and Erayinia projects in the next quarter.
1. EXPLORATION
(a) Erayinia JV Base Metals Project
Erayinia Project Background
The Erayinia Project (70:30 JV with Hawthorn Resources Limited) is located approximately 150 km east south east of Kalgoorlie within an Archaean greenstone belt at the southeast margin of the Yilgarn Craton. Exploration carried out 17 years ago identified copper-zinc mineralization in a possible Volcanic Massive Sulphide (VMS) environment. Focused exploration initiated by ABM Resources from 2005 onwards has confirmed the presence of a VMS zone (King prospect). A total of 25 drill targets have been identified within a 40 km long greenstone belt at Erayinia based on geophysical and geochemical anomalism. ABM is now intensifying its exploration drilling programs to determine the size and economic potential of its King prospect and the broader project area.
June Quarter Exploration
ABM Resources announced during the quarter that a very significant high grade intercept of 4 metres grading 11.5% Zinc in drill hole ECD132 was returned from its recently completed three hole diamond drilling program at the King Prospect. Individual one metre intercepts ranged in grade from 8.9% Zn to 15% Zn.
The diamond drilling was aimed at testing the new highly conductive body below the previously reported high-grade intersection of 5 metres grading 10.6% Zinc in drill hole ED116 identified by the second DHTEM survey in December 2007. The drilling program also tested the northern limit of the zinc mineralization in the Northern Lens.
The high-grade intercept associated with the sphalerite rich massive sulphides in drill hole ECD132 at the northern limit of the Northern Lens at King demonstrates that the Northern Lens may be much larger in size than previously interpreted (see long section on the following page). The drilling program has also extended the massive sulphide zone below and to the north of hole ED116.
The massive sulphide zone mineral assemblage visibly comprises sphalerite-pyrite/pyrrhotite-magnetite-galena. On either side of the massive sulphide zone are 1 to 2 metres of disseminated sulphides including sphalerite and (rare) galena. The host rock appears to be tuffaceous (banded chloritic-sericitic-siliceous schist) but adjacent to the massive sulphides, chlorite is dominant. Within the massive sulphide zone are angular siliceous fragments which may be relics of volcanic breccia or ejecta.
The table below details the significant assay results from drill hole ECD132. Assay results from the massive sulphide mineralization intersected in the other two diamond holes are awaited.
-------------------------------------------------------Hole ID North East Interval Width Zn Pb Cu Ag m m % ppm ppm ppm-------------------------------------------------------ECD132 6538640 484807 323-324 1 1.52 139 121 7 324-326 2 0.30 187 215 3 326-327 1 2.80 1830 309 33 327-331 4 11.50 1560 277 67ED143 6538665 484920 517-520 3 Results awaitedED144 6538690 484892 478-483 5 Results awaited-------------------------------------------------------
Drill core sample primary preparation has been crushing the whole core sample. The whole sample was pulverized in a vibrating disc pulveriser. Samples have been processed using a robotic sample preparation system. Samples were digested and analysed using the Aqua Regia method. Pb and Ag were determined by Inductively Coupled Plasma (ICP) Mass Spectrometry and Zn and Cu by Inductively Coupled Plasma (ICP) Optical Emission Spectrometry.
September Quarter 2008 Planned Exploration - Erayinia JV
A new program of diamond drilling to further outline the extent of the high grade lens at the King Prospect is expected to commence in the early part of the September Quarter 2008. A program of RC pre-collars for the diamond drilling is underway.
(b) Mimosa Gold Project JV
Mimosa Project Background
ABM Resources NL acquired equity in the highly prospective Mimosa gold project in the under-explored Archaean greenstone belt of the Manica Province in central Mozambique, approximately 800km north of the Mozambique capital of Maputo, near the border of Zimbabwe.
Mimosa lies in the east-west trending Manica-Mutare-Odzi Greenstone Belt which extends into Zimbabwe and has historically produced an estimated 2.5 million ounces of gold, mostly from the Zimbabwean side of the border. Very little modern exploration has been carried out in the Mozambiquan section of the greenstone belt until recently. However, there are now several international companies actively working in the area including Pan African Resources, which has recently announced a 1.7 million ounce gold resource at its Fair Bride Prospect, 13 km SE of Mimosa.
Local artisanal miners have been mining gold from quartz veins at Mimosa by hand for approximately 20 years. The project consists of three exploration licenses (2234L, 2295L and 1435L) totalling 960 hectares of which 40 hectares are currently being worked by a well controlled small association of approximately 200 artisanal miners. A long term agreement has been reached with the artisanal association for tenement access, exploration activities and mine development framework. ABM currently holds 67.33% of the Mimosa project, which will allow ABM, through exploration funding of USD 3 Million, to increase its project interest to 86.33%
June Quarter Exploration
An RC drilling program of 5,000m commenced at Mimosa to test gold mineralization associated with north-east and south-west trending structures within an altered and quartz veined granitoid following a systematic rock chip sampling program reported in the last quarter with gold values of up to 30.1g/t. A total of 4 RC drill holes for 335m were completed and drill samples are being prepared for despatch to Genalysis in Perth.
A systematic soil sampling program on a grid spacing of 50m X 50m was completed over two areas at Mimosa. A total of 806 samples were collected and despatched to Genalysis in Perth for BLEG analysis. Results are awaited.
September Quarter 2008 Planned Exploration - Mimosa JV
During the September Quarter, the RC rig has been replaced by a diamond rig due to adverse drilling conditions. The diamond drilling program will continue and is expected to be completed in the September quarter. The awaited results of the systematic soil sampling program will be assessed to assist in defining new drill targets for subsequent testing.
(c) Gascoyne Base Metals Project JV
ABM's Joint Venture partner Altera Resources Ltd (Altera) completed exploration activities at the Gascoyne Base Metals Project (GBMP) including an IP survey and geological interpretation of aerial photography data. The project is located approximately 250 km to the east of Carnarvon in the Gascoyne region in Western Australia. The GBMP is a joint venture between Altera and ABM Resources NL, whereby Altera is earning a 65% interest.
September Quarter 2008 Planned Exploration - Gascoyne JV
An IP survey was completed by Fugro Ground Geophysics to follow up the very significant results of 2.3% Pb and 0.9% Cu returned from first pass RC drilling during the March Quarter 2008. Analysis of the IP data is currently underway.
(d) Rare Earths Prospect Brockman JV
An agreement was reached with Mt Gibson Iron resulting in the termination of the Joint Venture Agreement that covers the Brockman tenements.
(e) Tenement Portfolio
An interest in the Kandole Hill and Myunga licenses was acquired in the Zambian copper belt through a Joint Venture structure with Ayr Infrastructure.
ABM has increased its holding in the Mimosa gold project to 67.33% in June 2008 through the acquisition of an interest of Ayr Resources Africa.
Through a farm-in heads of agreement, an interest in three Prospecting Licences (PL's 16/2386 - 16/2388) located at Broads Dam in Western Australia was acquired. The tenements, which are yet to be granted, are reversion applications over part of Mining Lease applications 16/295-297.
(f) Rehabilitation
Rehabilitation obligations stemming from the operations of Australasian Gold Mines going back many years at Broads Dam, Broad Arrow and Norseman (Red While and Blue) have been undertaken. The Broads Dam and Broad Arrow work has been completed and the Norseman work is well advanced and is expected to be completed in the September Quarter. The objective is to achieve release by the Department of Industry and Resources of the performance bonds, totalling $561,000, held against these projects as soon as possible.
2. BUSINESS DEVELOPMENT
(a) Kandole Hill and Myunga JV, Zambia
During April 2008, ABM Resources has secured a Joint Venture interest in two small scale mining licenses located at Kandole Hill and Myunga in the Zambian copper belt. These projects were offered to ABM through the Cooperative Agreement (CA) between ABM and Ayr Infrastructure that was announced on 8 May 2007. Other than reviewing a number of previously identified potential projects in Zambia, the agreement between AYR Infrastructure and ABM has been discontinued by mutual agreement. The parties will continue to work with each other to maintain the positive relationship that exists between them and will continue be working together on the Kandole Hill and Myunga copper project.
The ABM-AYR Infrastructure Pty Ltd Partnership ("AAP") has entered into a partnership with Lyapana Mine Ltd ("Lyapana") to explore and develop the Kandole Hill and Myunga projects. Upon the decision to commence a bankable feasibility study, the shareholdings will be AAP - 85% and Lyapana - 15%. A partnership agreement has been completed that provides ABM with a 70% interest in the Kandole Hill and Myunga Project.
Project Details and Geology
The highly prospective Kandole Hill and Myunga project in Zambia is located around 250 km to the north of Zambia's capital Lusaka (see location diagram on the following page). The conceptual model is an Iron Oxide Copper Gold (IOCG) style of mineralisation. Zambia is well endowed with mineral deposits, particularly copper, and prior to 1972 was one of the world's leading producers.
The project consists of two licences (SML310 and SML311) totalling 800 hectares and lies within the Lufilian Arc, a broad arcuate structure, conventionally described as about 150 km wide and 500 km long. The structure is probably better considered as a "mobile belt" similar to the Paterson Orogen or Halls Creek Mobile Belt in Australia and extends through Angola and Namibia.
The geology comprises of Upper Proterozoic sequence of terrigenous sediments of the Zambian Copperbelt. The sediments are siltstone and carbonate formations which have been selectively and locally mineralised to form copper deposits. Within the project region there are cross cutting structures which manifest at the surface as hematite caps. These hematite cap areas at Kandole Hill and Myunga are of a possible IOCG style of mineralisation. Initial reconnaissance rock chip sampling at Kandole Hill by ABM has returned anomalous copper values.
(b) Broads Dam Gold Project Farm-in
During April 2008, ABM entered into a farm-in heads of agreement (Farm-in HOA) with Broads Dam Gold Holdings Pty Ltd (Broads Dam) a subsidiary of Australian Gold Investments Limited (AGV) to explore and develop 3 Prospecting Licences (PL's 16/2386 - 16/2388) located at Broads Dam in Western Australia. The tenements, which are yet to be granted, are reversion applications over part of Mining Lease applications 16/295-297.
The AGV Broads Dam Gold Project area is centred 40km NW of Kalgoorlie and approximately 15 km NW of the Kundana Gold Mine. The three tenements covered by the farm-in had exploration work completed by previous explorers who identified two significant gold targets, T11 and T12. T11 and T12 were identified on the basis of anomalous geochemical results. These targets lie on the Zuleika Shear Zone at the boundary of volcanogenic sediments and greenstone rocks which are cross cut by NS and NE trending faults. The tenements are considered to have the potential to host high grade gold deposits similar to those delineated at Kundana.
As with the other areas in the Broads Dam tenement package, left-lateral movement along the Zuleika Shear Zone within the tenement package appears to have generated reidel shears leading to brittle fracture deformation and the formation of fault jogs and zones of dilation favouring gold mineralisation.
The Farm-in HOA comes into effect on the Broads Dam tenements being granted and gives ABM the right to earn up to a 40% joint venture interest in the three Prospecting Licences in four stages.
ABU is the manager of the joint venture. A formal joint venture agreement is to be negotiated upon ABU earning its first 10% joint venture interest.
3. CORPORATE
A$4 Million Share Placement Completed
ABM announced to the ASX on 11 April 2008 that it received commitments for the placement of 40 million shares at 10 cents per share with receipt of proceeds from the first tranche, representing A$2.1 million for 21 million shares at 10 cents each. These shares were allotted to clients of Australian stockbroking firms and existing shareholders. The second tranche was received in June 2008 which completed the A$4 million placement. The funds from the raising will primarily be used to fund exploration at Mimosa and Erayinia and for working capital.
Corporate Development during the September Quarter
ABM is very pleased to have secured two well-credentialed and experienced technical non-executive directors, Simon Rigby and Joe Ariti, and looks forward to their input in the exploration of our highly prospective projects.
ABM would like to sincerely thank David Reynolds for his positive and long term work for the company and wishes him all the best in his retirement.
About ABM Resources NL
ABM Resources (ASX:ABU) is developing several gold discoveries in the Central Desert region of the Northern Territory of Australia. The Company has a multi-tiered approach to exploration and development with a combination of high-grade production scenarios such as the Old Pirate High-Grade Gold Project, large scale discoveries such as Buccaneer, and regional exploration discoveries such as the Hyperion Gold Project. In addition, ABM is committed to regional exploration programs throughout its extensive holdings including the alliance with Independence Group NL at the regional Lake Mackay Project.
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