Phase 2 Surface Sampling on East Side Vein
Perth, July 9, 2012 AEST (ABN Newswire) - ABM Resources NL (
ASX:ABU) is pleased to announce the second phase of its 2012 program of systematic longitudinal sampling of additional veins extensional to the Old Pirate high grade deposit in the Northern Territory, Australia.
Highlights of Phase 2 sampling along the strike length of veins at Old Pirate:
"East Side" high grade vein is extensional to existing resource and now confirmed to link with Old Pirate South resource area.
Systematic surface sampling results of the East Side vein received for 2012 Phase 2:
- 63 metres strike length averaging 15.42g/t gold linking the East Side vein with the Old Pirate South resource area for a total vein sampling of:
- 343 metres strike length averaging 28.9g/t gold.
- Vein section is up to 3 metres wide with an average width of 1.9 metres with the widest sections carrying the highest grades of up to 273g/t gold.
Two new extensional mineralised quartz veins also identified with an average width of 0.66 metres discovered between the East Side Vein and the main Old Pirate area with cumulative strike length sampling of:
- 110 metres strike length averaging 15.83g/t gold including a higher grade section of:
- 30 metres strike length averaging 55.70g/t gold.
Surface sampling at the Golden Hind Vein completed and pending assay with:
- 400 metres projected target zone with multiple veins.
- 40 metre central section with continuous coarse visible gold sighted.
Darren Holden, Managing Director, said, "The surface sampling work continues to expand the footprint of Old Pirate with an excellent set of results returned. Furthermore, our excitement at the potential of the Golden Hind Prospect grows, with some of the best continuity of samples containing visible gold that we have seen to date."
The "East Side" Vein
Following on from the success of the 2011 surface sampling program, ABM has continued the approach of exposing surface veins and systematically channel / trench sampling them. So far in 2012, the Company has collected over 2000 samples of new vein material. A detailed description of the process is provided below.
The second phase of assay results from Old Pirate's 2012 program includes additional samples from the previously announced East Side vein, and now confirms that this vein links through to the Old Pirate South area.
The East Side vein is located close to, but mostly outside, the eastern margin of the open pit design presented in the scoping study (announced 15/05/2012). Assuming that this vein continues at depth, the pit design would likely be modified to include this vein. Widening the pit to include this vein could also carry the pit deeper into the Old Pirate veins that are within the current resource.
The East Side vein extends to the south towards the Old Pirate South Eastern Limb where longitudinal sampling results presented in 2011 showed 69 metres strike length averaging 49.9g/t gold (announced 05/01/2012).
Other New Mineralised Veins discovered
In addition to the East Side vein two other new mineralised veins have been identified between the East Side and the main Old Pirate area (Figure 1) with a combined length of 110 metres and average grade of 15.83g/t gold. The results of these are presented in Table 3 below (see link, at bottom of release).
A series of rock samples from veins to the south of Old Pirate were also returned and showed generally lower grade results with occasional individual samples carrying higher grades. These are noted in the Appendix.
The Golden Hind Prospect
ABM recently announced the discovery of coarse visible gold at a prospect located 800 metres south of Old Pirate called "The Golden Hind" prospect. The Company has completed mapping and sampling of the outcropping portion of the Golden Hind (Figure 3). The target zone is approximately 400 metres long and consists of multiple veins between 0.1 and 3 metres in width. A central zone is 40 metres long with visible gold observed in hand specimens almost continuously along the length of the vein. Furthermore a rock currently interpreted to be either an intrusive dyke (a quartz feldspar intrusion) or a quartz vein breccia was located in this area and also contained visible gold. Assay results are pending from the surface work at The Golden Hind Prospect and a drilling program is intended to commence in several weeks.
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 the associated 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 2).
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 mining 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, Tables and Appendix's, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-ABU-595796.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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