Eighth combined annual report for EL 8696, EL 8697, EL 9442 and EL 9449 Lake Mackay Project for year ending 21 August 2010

Abstract

The Lake Mackay Project is located approximately 460km WNW of Alice in the western Arunta region. The project comprises four granted Exploration Licences - EL 8696, EL 8697, EL 9442 and EL 9449. All tenements were registered to Tanami Exploration (TENL), a wholly owned subsidiary of Tanami Gold NL (TGNL), a publicly listed company. In December 2009, ABM Resources NL (ABM) purchased EL 8696, EL 8697, EL 9442 and EL 9449 from TENL. ABM explores the tenement for the potential of gold mineralisation. Previous exploration has outlined several prospects within the Lake Mackay Project area. In the first two years of tenure previous managers Newmont Gold Exploration Pty Ltd (Newmont Gold) defined the Taupo, Te-Anau and Manapouri anomalies. Geochemical sampling and RAB drilling by TENL in the third year identified the Whakatipu, Tekapo and Ohau anomalies. An Aircore drilling program at the Tekapo prospect in Year 4 targeted gossanous ironstone and returned several promising intersections peaking at 16 metres at 3.4g/t Au from 29 metres in LMA133. In Year 5 an aircore drilling, lag and rock chip sampling program followed up the mineralisation discovered in Year 4. In Year 6 a review, a petrographical investigation as well as a combined ground magnetic and gravity survey were conducted. In Year 7 only ABM undertook exploration including a fieldtrip and the reprocessing of geophysical data. In 2010 ABM commissioned Fathom Geophysics Pty Ltd to reprocess aeromagnetic data covering all their Northern Territory tenements. The reprocessing included the Lake Mackay Project area. Three different methods of processing were applied, the Tanami Structure Detection, the Tanami Remanent Magnetization Analysis and the Tanami Radial Symmetry Processing. ABM reviewed and evaluated the exploration potential of the area but no on-ground exploration was conducted during the eighth year of term due to the sale of EL 8696, EL 8697, EL 9442 and EL 9449 from TENL to ABM.