Annual report from 1 November 2015 to 11 February 2016 and Final report from grant to 11 February 2016 for EL 9343, EL 9442, EL9449, EL 10305, EL 10306, EL 24299, EL 24492, EL 24567, EL 24858, EL 24949, EL 25630, EL 25632, EL 25866, EL 27780, EL 27872, EL 28028, EL 29459, EL 29460 and EL 29483 Lake Mackay Project

Abstract

The relinquished tenements formed part of ABM?s Lake Mackay Project which is located approximately 460km WNW of Alice Springs in the western Arunta region. The project comprised 21 granted Exploration Licences 9343, 9442, 9449, 10305, 10306, 24299, 24492, 24567, 24858, 24915, 24949, 25630, 25632, 25866, 27780, 27872, 27906, 28028, 29459, 29460, and 29483. These tenements were amalgamated for group reporting GR165. In August 2002 Exploration Licences 8694, 8696, 8697, 9442 and 9449 were granted to Normandy Gold Exploration (Normandy) and Tanami Exploration NL (TENL). Normandy was taken over by Newmont Mining Corporation and the Normandy tenements were subsequently transferred to the Newmont Mining Corporation subsidiary Newmont Gold Exploration (Newmont). In 2004 Newmont withdrew from the Joint Venture and EL 9442 plus EL 9449 were transferred, to TENL. In December 2009, ABM Resources NL (ABM) purchased EL 8696, 8697, 9442 and 9449 from TENL. Fourteen of the Lake Mackay Project tenements were subject to a Joint Venture Agreement with Deep Yellow Limited (DYL) which holds the right to explore the tenements for uranium. No work has been undertaken by DYL during the life of the tenements. In August 2013, ABM signed an exploration agreement with Independence Group NL (IGO) in respect of ABM?s Lake Mackay Project. IGO was exploring the Lake Mackay Project for gold. In January 2016 ABM reviewed its overall tenement situation and concluded to relinquish 19 of the 21 tenements after IGO decided to focus on the 2015 Bumblebee prospect discovery located in EL 24915 by withdrawing the majority of the main Lake Mackay area from the exploration agreement with ABM. This report is the annual and final report covering exploration from the various grant dates to 11 February 2016 in respect of the nineteen surrendered tenements; ELs 9343, 9442, 9449, 10305, 10306, 24299, 24492, 24567, 24848, 24949, 25630, 25632, 25866, 27780, 27872, 28028, 29459, 29460 and 29483. No on ground exploration was conducted during the short period from 11 November 2015 to 11 February 2016, the final year of term. Over the 14 years of term exploration was completed by Newmont, TENL, ABM and IGO. Exploration activities included surface sampling, drilling, geophysical surveys, geological mapping and petrological investigations. A total of 21,072 surface samples comprising Lag, Rock Chip, BCL and Soil samples were collected. A total of 1,149 drill holes for a total of 52,583.3m comprising Vacuum, RAB, Aircore and RC drilling were completed. The geophysical surveys comprised ground magnetics and ground gravity as well as an infill airborne gravity survey in collaboration with the NTGS. Reprocessing of geophysical data with three different methods was completed. A total of 20 petrological investigations of drill chips were completed. Geological mapping was undertaken of 4 prospect areas; Dodger, Tekapo, Manapouri and Taupo.