Phase 3 Surface Vein Sampling Extends Old Pirate
Sydney, July 16, 2012 AEST (ABN Newswire) - ABM Resources NL (
ASX:ABU) is pleased to announce the third phase of its 2012 program of systematic longitudinal sampling of veins extensional to the Old Pirate high grade deposit in the Northern Territory, Australia.
Highlights of Phase 3 sampling along the strike length of veins at Old Pirate:
- Western Limb vein with an average width of 0.19 metres extends north beyond the existing resource with surface sampling returning:
-- 126 metres strike length averaging 42.37g/t gold.
- A peak value of 502g/t gold was returned from a surface sample.
- A recently discovered outcrop 600 metres further north is directly along strike and may provide further extensions (pending sampling).
Darren Holden, Managing Director, said, "Similarly to results announced on 9 July 2012, these further high-grade vein samples continue to expand the target areas at Old Pirate. Our exploration season continues apace, and drill assays and further surface results are expected shortly."
The Western Limb Vein
The Western Limb vein at Old Pirate is a straight continuous quartz vein ranging in width from 4 metres to less than 10cm. On 08/02/2012 ABM released results from the 2011 sampling on the Western Limb of 102 metres strike-length sampled with a grade averaging 32.62g/t gold. Previous drill results indicate that the Western Limb extends to at least 150 metres below surface. The 2011 surface sampling and drill results were used in the resource estimation work presented on 16/04/2012.
These latest results confirm that the Western Limb vein continues to the north with high gold grades over narrow widths. Recent surface mapping has identified a vein outcrop approximately 600 metres further north along strike of the Western Limb and shows increased widths (1 to 2 metres) and provides the potential for even further extensions of the Western Limb lodes.
2012 Vein 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.
View the full announcement here:
http://media.abnnewswire.net/media/en/docs/ASX-ABU-596364.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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