Annual Report EL 25041 Barrow Creek Project from 20 December 2013 to 9 September 2014

Abstract

EL 25041 forms part of the ABM Resources NL (ABM) Barrow Creek project which comprised Exploration Licenses 8766, 23880, 23883, 23884, 23885, 23886, 26825, 28515, 28727, 28748, 29723, 29724, 29725 and 29896. The Barrow Creek project is centered approximately 320km NNW of Alice Springs in the North Arunta region and stretches for 236km west to northwest of the town of Barrow Creek (Figure 1). The tenement area was selected as it was included in Newmont's Tanami Regional 2006 Framework study which highlighted the prospectivity of the area and adjoins ABM's Barrow Creek project. ABM explored the tenement for the potential of gold mineralisation. As ABM focused on bringing the high-grade Old Pirate Gold Deposit at its Bonanza project into production through staged development, which commenced in June 2013, ABM started to implement its divestment policy. In November 2013, as part of ABM's divestment policy ABM reached an agreement with Clancy Exploration Ltd (ASX: CLY) ('Clancy') whereby Clancy will have the option to acquire 100% of ABM's interests in the North Arunta Regional Projects, which the EL 25041 forms a part of. Clancy commenced a substantial program of compilation and re-processing of potential field datasets covering an Area of Influence (AOI) in the Tanami - North Arunta region, which includes the Barrow Creek project. This work was undertaken by Fathom Geophysics. Public domain data and closed file ABM surveys of Total Magnetic Intensity (TMI) data was processed using the differential Reduced to the Pole method to produce a selection of images for a later stage interpretation. The detailed differential Reduced to the Pole regional imagery by Fathom Geophysics was used by consultant Dr Leon Vandenberg to compile a 1:100,000 scale basement geology interpretation. Following a due diligence period and approval of the terms of the agreement by its shareholders on 7 May 2014, Clancy commenced a $2.5M capital raising to fund exploration of the North Arunta project. Unfortunately, given the extremely challenging exploration investment environment, the fund raising was not completed by the deadline of 2 August 2014. Following the unsuccessful investigation of other possible funding options, Clancy were forced to withdraw from the agreement. At the end of the reporting period, investigations and negotiations for alternative arrangements had not been finalised. No on ground exploration was carried out. No recommendations were made.