Group annual report for EL 23926, EL 23927, EL 29367 and EL 29368 GR253 Bonita Project from 16 March 2012 to 15 March 2013

Abstract

ABM explores the Bonita project for the potential of gold mineralisation. ABM applied for the tenements for their strategic position along strike of the mineralised Reynolds Range corridor, and its interpreted similar geology, as well as for several anomalous total magnetic intensity features like the Swampy magnetic high. Exploration in the first year of tenure 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 tenements in collaboration with the NTGS and two surface sampling programs. The airborne electromagnetic (AEM) survey covering the majority area of EL 23926 and EL 29368 comprised 58 lines for a total of 1,229 line km with a 1,000m line spacing and a line direction of 42 degrees. The nominal terrain clearance was 100m. The AEM survey covering 1,233km was completed by Fugro Pty Ltd. (Fugro). The survey data was processed by Fugro and Fathom Geophysics Australia Pty Ltd. (Fathom) completed further processing and interpretation work. Fugro and ABM concluded that the AEM survey revealed a previously unidentified regional structure, as well as generally thick transported cover, deep weathering and two north-south trending palaeo channels towards the eastern parts of the tenement holdings. Fathom concluded that no quantifiable anomalies were recognised in their first-pass plate modelling due to the effects of the overburden, which must be removed from these data, before any effective plate modelling can be done. The two surface sampling program areas Swampy and Bonita were selected in the first place to test conceptual targets of the underlying prospective regional magnetic features interpreted from public domain data. A total of 1239 surface samples were collected; 467 samples on EL 23926 and 772 samples on EL 29368. In order to create access to the tenement and particular to the geochemical survey areas approximately 40 kilometres of track grading and regrading was completed. At the Swampy prospect (EL 29368) the pH survey and the regional soil survey over a magnetic anomaly of 3km in diameter, at the intersection of tectonic scale geological structures produced an anomaly in the 90 - 100 percentile range, covering an area of 7.5km x 2.5km remains open to the south. A second area, 4.5km x 1.5km, is highlighted by gold response in the 80 - 98 percentile range. These anomalies are highly significant as Swampy was a conceptual target in a poorly explored area. At the Bonita prospect (EL 23926) the soil survey showed patchy gold response in the 80 - 100 percentile range over an area of 4.5km x 2.5km, open to the west, coincident with a broad zone of magnetic anomalism. This target was historically very poorly tested, with extensive transported cover, making this a significant result.