Partial relinquishment report for EL 28083 Stafford SE Reynolds Range Project GR251 from 31 January 2011 to 31 January 2017

Abstract

The relinquished blocks are part of ABM Resources NL (ABM) Reynolds Range Project which is located approximately 230 kilometres north-northwest of Alice Springs in the western Arunta region. The project comprises three granted Exploration Licences, EL 28083, EL 23888 (GR251) and EL 23655. ABM explores the project for the potential of gold mineralisation. No on - ground exploration was completed on the surrendered area as all exploration activities focused on other areas of the project. In 2012 Fugro Pty Ltd completed a project wide medium density airborne electromagnetic (AEM) survey. The survey data was processed and interpreted by Fathom Geophysics. No conductive targets were located on the relinquished blocs. In 2014 ABM reached an agreement with Clancy Exploration Ltd (ASX: CLY) ('Clancy') whereby Clancy would have had the option to acquire 100 percent of ABM's interests in the North Arunta Regional Projects, which EL 28083 formed a part of. Clancy asked Fathom Geophysics to compile and re-process of potential field datasets covering the North Arunta region and as such the relinquished blocks. At that time Clancy asked SRK Consulting to do a pre-acquisition assessment of the data, which did not note anything in particular on the relinquished area. Target review and Clancy reprocessing indicated an ESE plunging antiform along retrograde shear zones proximal to the axial plane. Most Reynolds Range prospects are located on either limb. The southern part of EL 28083 does not form part of this antiform and is less likely to host mineralisation. Coincident younger cover sequences hampering cost effective exploration and the presence of a larger unmineralised granite over parts of the blocks render these blocks less prospective. Historic soil, lag, and early RAB does not exceed background levels for gold, arsenic or copper