Group Annual Report for EL's 22850, 23208, 23659, 24344, 24436, 24437, 25194, 25844, 26608, 26610, 26616, 27124, 27127, 27339, 27378, 27813, 28322, 28323, 28324, 28325, 28327 and 28328, Bonanza Project GR164/13 from 31 December 2011 to 30 December 2012

Abstract

Exploration during the reporting period included diamond and RC drilling, vein / costean sampling, surface sampling, geological mapping, resource estimates, scope studying and metallurgical testing. ABM focused their on-ground activities on the wider Twin Bonanza Gold Camp in EL 28322 (previously EL 23661) and completed desktop studies plus re-evaluation of targets on the other tenements of the project. Most of the rock chip sampling was associated with the field mapping. The best assay result returned for the rock chip sampling was 2.77ppm gold from BERK100081 (bucky, planar, quartz) located approximately 785m south of Casa (proper) prospect on EL 26616. The vein / costean sampling program continued in 2012 in the wider Old Pirate area. The trenching program, infilling and extending along strike as well as testing newly discovered veins, resulted in a substantial extension of the 2011 mineralisation. The 2012 program revealed vein sections with the same magnitude of mineralisation at the East and Western Limb of the Old Pirate, 'New Veins', Golden Hind Vein, Old Glory Vein and the Heartland Vein. At the Casa Prospect (EL 26616) vein sampling returned ten elevated gold assay results (max. 3.18 ppm) The field mapping extended the 2011 mapped prospect geology and added further structural details especially at the Old Pirate resource and the Crows Nest prospect. Ten new prospects (Jack-Sparrow, Nova, Rudder, Skullduggery, Vampire West, Warry, Plank, Voyager and Post) in the wider Old Pirate area were added to the mapping. At the Buccaneer prospect the drilling in-filled and further extend the resource. The results will be used to update the Buccaneer resource estimates in 2013. At the Old Pirate prospect the drilling extended the mineralisation of the deposit to the north along the western as well as the eastern limbs of the anticline and helped to delineate the structure through the centre of the fold. The results of the 2012 infill drilling (25m spacing) will be used for a resource extension and a resource category upgrade in 2013. In April 2012 ABM updated the 2011 JORC compliant resource estimates for the Old Pirate Resource and the Buccaneer Resource integrating the results of the 2011 exploration. At the Old Pirate Deposit the April 2012 resource estimate (Inferred + Indicated), utilising a topcut, states 1.673Mt of ore averaging 7.95g/t for a total of 427,400 ounces gold. At the Buccaneer Porphyry Deposit the updated April 2012 resource estimate (Inferred and a new Indicated Resource) represents an overall global increase of 60% of gold ounces to the 2011 estimates. 127.9Mt averaging 0.65g/t gold for 2.67 million ounces gold (0.2g/t cut-off); 88.3Mt averaging 0.80g/t gold for 2.26 million ounces gold (0.4g/t cut-off); 44.1Mt averaging 1.1g/t gold for 1.57 million ounces (0.6g/t cut-off). The metallurgical test work of two 100kg samples of vein material from eleven outcropping veins at the Old Pirate Gold Prospect investigated the potential to extract the gold using two different low-cost gravity methods. Both the Consep Knelson Concentrator test-work and the Gekko Python amenability test-work conclude that the Old Pirate material is able to yield extremely high gravity gold recoveries up to 97.3%. The scoping study indicates an initial 2 year mine life for the Stage 1 pit with total revenue of $418.4M against a total expense of $160.6M resulting in a $257.8M cash flow.