High Grade Gold Results from the Golden Hind Discovery
Perth, Aug 6, 2012 AEST (ABN Newswire) - ABM Resources NL (
ASX:ABU) is pleased to announce the first systematic surface sampling results for gold at The Golden Hind Prospect located 800 metres south of the Company's Old Pirate High Grade Gold deposit. Golden Hind is part of the Company's Twin Bonanza Gold Camp Project in the Northern Territory of Australia.
Highlights from the Golden Hind Prospect:
- Multiple sub-parallel veins up to 2 metres wide.
- 200 metre mineralised strike length with samples averaging 29.57g/t in longitudinal surface sampling with a high grade section of:
-- 60 metres strike length with samples averaging 103.23g/t gold.
- Peak assay result of 784g/t gold.
- Further surface sampling results pending.
- Drilling to commence at the Golden Hind Prospect shortly.
Darren Holden, Managing Director of ABM Resources, said "The discovery of a second high grade gold deposit less than a kilometre from Old Pirate is an excellent outcome. Overall the spectacular grades from the Golden Hind are some of the highest we have ever seen from the systematic surface sampling and we look forward to mobilising the drill rig on to this new gold prospect."
The 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 3000 samples of new vein material, most of which are outside the existing resource. A detailed description of the sampling process is provided in this release.
The Golden Hind Prospect consists of a series of outcropping veins ranging from 2 metres to 30cm in width. The vein array has been mapped over a strike length of approximately 400 metres and continues under shallow cover to the northwest and southeast. Approximately 200 metres of the vein array is confirmed to be mineralised, within which a very high-grade section of 60 metres averages 103.23g/t gold (Figure 1, see link below). There are further assay results and extensions to the Golden Hind Prospect pending sampling and assay. A drill rig is scheduled to test the Prospect with an initial 10 to 15 hole program shortly.
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, see link below).
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 and Golden Hind 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 and extensions 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 full ABM Resources announcement including Tables and Figures, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-ABU-599343.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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