Partial relinquishment report for EL 23926 Bonita Project from 11 April 2012 to 7 September 2015

Abstract

The relinquished area of EL 23926 formed part of the ABM Resources NL (ABM) Bonita project which comprises Exploration Licenses 29367, 29368, 23926 and 23927 (Figure 1). On 20th August 2012 the amalgamated technical reporting for Bonita was approved and the group reporting ID GR 253/12 assigned. ABM explores the tenement for the potential of gold mineralisation. In 2012 ABM applied for the tenements for their strategic position along strike of its holdings of the mineralised Reynolds Range corridor, and its interpreted similar geology. In 2013, work completed consisted of regional desktop studies, including geophysical and geological interpretations which resulted in the planning and completion of an airborne electromagnetic (AEM) survey over two of the project tenements [EL 23926 and 29368] and two surface sampling programs. None of the surface sampling covered the relinquished area. In 2014 and 2015 as ABM's focus turned to development the Old Pirate project no exploration was conducted; but as part of ABM's strategy to ensure exploration of its tenement portfolio, ABM negotiated an agreement in late 2013 whereby Clancy Exploration Limited (Clancy) had an option to acquire the North Arunta project tenements. Clancy commenced a pre-acquisition, substantial program of compilation and re-processing of potential field datasets covering an Area of Influence in the Tanami - North Arunta region, which includes the Bonita project. This work was undertaken by Fathom Geophysics. Clancy was unable to complete a capital raising to fund exploration and was therefore unable to meet the conditions precedent and had to withdraw from the agreement to acquire the North Arunta tenement package. Following the withdrawal of Clancy, ABM was not in a position to undertake any exploration on the Bonita project during the 2014 field season. Further expressions of interest were sought for joint venture of the North Arunta project tenements. Whilst there was some interest nothing had eventuated at the time when writing this report. Consequently ABM was required to a 'block reduction for non-compliance with expenditure covenant'. This resulted in the relinquishment of 80 blocks of the 240 - a 33% reduction of the EL 23926 tenement area. The relinquished areas of EL 23926 were selected due to the lack of significant magnetic features which warranting follow up work and the absence of geochemical results plus the improbability of upgrading the prospectivity with additional sampling.