Sixth annual report EL 23888 Stafford from the 12 August 2009 to 11 August 2010 Reynolds Range Project

Abstract

EL 23888 was originally granted to Newmont Australia Pty Ltd (Newmont) on 12 August 2004. On 19 December 2006, EL 23888 was transferred to Tanami Exploration NL (TENL) who explored the tenement as part of their Reynolds Range Project area, where TENL identified the potential for quartzvein-hosted gold mineralisation in the Proterozoic basement rocks. In 2008 TENL introduced a third party, Deep Yellow Limited (DYL) to explore the tenement for the potential of uranium mineralisation. In December 2009, ABM Resources NL (ABM) purchased EL 23888 from TGNL. ABM explores the tenement for the potential of gold mineralisation. EL 23888 lies in Central Australia centred approximately 220 kilometres north-northwest of Alice Springs. It is situated in the central part of the Aileron Province of the Arunta Region. All exploration on EL 23888 during the sixth year of term was carried out by ABM. It included surface sampling as well as RC and diamond drilling. Significant surface sample (rock chip) assay results were returned from both the Pine Hill Prospect with a maximum value of 1.79 g/t Au (PH200004) as well as from the Reward Prospect with maximum value of 271g/t Ag (RW 200005) and a 20.30% Cu (RW200006) assay value. In 2010 RC and Diamond drilling tested targets of a high grade sediment hosted veins style along the Stafford Mineralised Zone. The results at the Sabre Prospect extend the mineralised zone to a width of more than 120 metres. Best intercepts were associated with sulphidic quartz veining in metamorphosed silt and sandstones (semipelite and psammite) and included 17meters at 3.93g/t gold including 2 meters of 18.15g/t Au came from the Sabre Prospect. At the Falchion Prospect the best intersection returned 29m at 2.32g/t Au and 32m at 1.84 g/t Au also in conjunction with quartz veins hosted within metamorphosed sandstone. The one RC hole drilled at the Assegai prospect returned no significant intercepts.