New Prospect with Coarse Visible Gold at Surface
Perth, June 28, 2012 AEST (ABN Newswire) - ABM Resources NL (
ASX:ABU) is pleased to announce the discovery of coarse visible gold at The Golden Hind Prospect located 800 metres south of Old Pirate on the Company's Twin Bonanza Gold Camp Project.
New Prospect named "The Golden Hind" Prospect.
- The Golden Hind Prospect is located 800m south of the Old Pirate resource area.
- Approximately 400m strike length of outcropping vein between 30cm and 3 metres in width extending under cover along strike.
- Coarse visible gold observed in hand-specimen with assays pending.
- Never before drill-tested zone.
General Exploration Update
- 44 holes for 8460 metres completed at Old Pirate pending assay.
- 14 holes for 5502 metres completed at Buccaneer with 3864 metres pending assay.
- 2400 metres of extensional surface sampling completed at Old Pirate and extensional nearby prospects completed pending assay.
The New "Golden Hind" Prospect
Following on from the success of the 2011 surface sampling program, ABM has continued the approach of exposing and systematically sampling near-surface and outcropping veins. So far, in 2012, the Company has collected over 2400 samples of new vein material that is mostly outside the existing resource. A detailed description of the process is provided in this release.
The Golden Hind Prospect is a single outcropping vein ranging from 3 metres to 30cm in width. The vein has been mapped over a strike length of approximately 400 metres and continues under shallow cover to the northwest and southeast. To the southeast the vein is interpreted to wrap around an anticline (an arch shaped geological structure) and is structurally analogous to the main Old Pirate deposit (Figure 2).
Recently the Company started systematic 1 metre strike length sampling of the outcropping portions of the vein following up on a single historic 4.4g/t gold rock-chip sample. So far approximately 200 samples of The Golden Hind Prospect have been collected and are pending assay. Coarse visible gold has been sighted in the vein (Figure 1, 3 & 4) and it is not known if all or only part of the vein is mineralised. ABM is continuing with the sampling of the vein and dependent on overall results a rig will mobilise to drill test the prospect.
There are several other outcropping veins in the vicinity of The Golden Hind Prospect which will also be systematically sampled.
Other News - Exploration Update
ABM is continuing its intensive exploration program at Old Pirate. To date a total of 44 holes for 8460 metres have been completed on projected extensions and infill at Old Pirate. A further 14 holes for 5502 metres have been completed at Buccaneer. Other than the first four of the Buccaneer holes already announced (14/6/2012) all holes are pending completion of assay.
In addition to the drilling, systematic exposing of veins and sampling of natural outcrop has been undertaken. To date over 2400 metres of extensional veins at Old Pirate have been exposed and sampled. The Company recently reported the first results from this work revealing 185 metres strike length averaging 30.96g/t gold at the new "East Side" vein at Old Pirate (refer announcement 15/06/2012).
ABM is also conducting a regional soil sampling geochemistry program on the wider Twin Bonanza Project area.
Extensional Discoveries, Implications for Resource Development and Next Steps ABM has been exploring Old Pirate since 2010. However, it was the innovation of using systematic surface sampling in mid 2011 that allowed the Company to better understand the coarse gold and statistical nugget effect. In April 2012 the Company announced a maiden inferred and indicated resource totalling 565,000 ounces of gold averaging 10.65g/t gold uncut at Old Pirate (refer Appendix 1).
In May 2012 the Company announced an initial independent scoping study based on a preliminary open pit mine design and the installation of a small scale gravity gold recovery plant. This scoping study showed the potential for low capital expenditure of $27M and strong cash flows of over $250M after costs over two years. With the surface sampling and drilling work underway ABM is assessing the overall scale of the Old Pirate system in order to update the resource estimation work and the scoping study in the near future.
Furthermore, Old Pirate sits on the same exploration license as the large scale / bulk tonnage Buccaneer Porphyry Gold Deposit. The Company is currently assessing whether there are processing and development synergies between the two deposits.
Upon assessment of the overall scale and completion of requisite studies over the Old Pirate project area, which includes base line flora / fauna surveys, the Company will be in a position to apply for a mineral lease.
Surface Vein Sampling Rationale and Sampling Method
Gold in the Old Pirate area can be coarse (up to 2 to 3mm grains) and is hosted within quartz veins.
However, the distribution of the gold within these veins is not uniform, and hence drilling will likely under-call the overall grade due to the fact that there is a less than 1 in 4 chance of intersecting high grade in any particular part of the vein. Upon advice from external consultants, rigorous and systematic sampling of the quartz along the strike length of veins at Old Pirate was proposed. Over 700m of sampling was conducted in 2011 and combined with drilling to estimate the gold resources at Old Pirate (16/04/2012). ABM has recommenced the program in 2012 of which the on-going work is presented here. This information, along with statistical parameters and extents of mineralisation, will be used to aid with further drilling and resource work.
The process for the surface sampling program is:
1. Natural outcropping veins are mapped for location and width and sampled at 1 metre strike length intervals.
2. A small digger then exposes those parts of the veins that are hidden underneath shallow soil cover to provide a combined map of natural outcrop and exposed quartz vein.
3. For each metre of exposed quartz vein (both in natural outcrop and cleared veins) two representative samples of approximately 4 to 10kg are collected. Quartz is selected systematically in a grid pattern so as not to bias individual samples. Both samples are sent to the laboratory.
4. The sample width depends on the width of the vein or exposed areas. In cases where the vein width is generally greater than 1 metre, multiple samples may be collected across the vein.
5. The maximum depth of the digging is 60cm (due to permit regulations, safety considerations and to minimise environmental impact). If the soil cover is greater than 60cm then sampling does not take place despite the likelihood of the vein continuing beneath 60cm.
6. Samples are processed by ALS Global in Alice Springs (NT), and ALS Global in Perth (WA) where they are weighed and analysed using regular fire assay (AA26D). Samples greater than 100g/t are re-assayed using AA26D / Over Limit Dilution method.
7. Overall statistics and spatial distribution for vein strike length and grade are calculated by measuring sampled portions of vein (including a projection of short lengths (<10 metres) where the vein is inferred to have extended under cover) and then averaging all of the samples along the length. Individual entire veins that are un-mineralised (<1g/t) are excluded from overall statistics.
8. Samples are surveyed with a hand-held GPS using waypoint averaging for ~20cm spatial accuracy.
9. Surface samples are weighted for sample width prior to being used in any resource estimation work.
To view the complete ABM Resources announcement including Figures 1-7 and Appendix 1, please click the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-ABU-594636.pdf
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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