Group Annual Report for EL's 8766, 23880, 23883, 23884, 23885, 23886, 26825, 28515, 28727, 28748, 29723, 29724, 29725 and 29896 GR162/12 Barrow Creek Project from 10 September 2012 to 9 September 2013

Abstract

The Barrow Creek Project is located approximately 320km NNW of Alice in the western Arunta region. In December 2009, ABM Resources NL (ABM) purchased the project as Lander River JV tenements from Newmont. In January 2013 EL 29896 was split from EL 26825 on the demand of the DME to comply with current legislation requirements regarding maximum individual tenement size. In May 2012 EL 29723, 29724 and 29725 were granted and were added to the GR162 technical reporting group in July 2013. ABM explores the tenement for the potential of gold mineralisation. Exploration during the year ending 9 September 2013 included; geological field mapping, geochemical and biogeochemical sampling, RC drilling and the review of the three new tenements which were added to the project in May 2013. Field mapping and ground validation by Vandenberg, L.C (EL 26825, 29896) resulted in the completion of a geological map covering approximately 187sq km over the Tulsa - Kroda area and generated three outcropping zones of potential mineralisation. The mapped Zone 2 dolerite was possibly intersected in EMRC100004. In five campaigns of geochemical surface sampling, a total of 1000 surface samples, including 136 rock chip, 717 soil, five lag and 142 biogeochemical samples were collected on four tenements (EL 23883, EL 23885, EL 26825, EL 29896). At the Tulsa prospect (EL26825) two surface sampling programs were completed to follow up on airborne EM survey conductor targets. The first geochemical program (TU_GS1) consisted of two parallel traverses of pH sampling, which confirmed a surface geochemical gold anomalism, supported by multielement pathfinders and pH, over the inferred northern extension of the Kroda shear zone. The second geochemical program (TU_GS2), at Tulsa, was completed in two stages as a systematic survey on a 250 x 500 m spaced sample grid covering approximately 63km. The second program (TU_GS2) confirmed surface geochemical gold anomalism, supported by multielement pathfinders over the inferred northern extension of the Kroda shear zone. The results of sampling at the Eleanor and Harrison prospects (EL 23885) were already reported in the previous annual Barrow Creek Report, as they were part of the sampling campaigns, which extended to a minor degree just across the 9 September 2013 reporting date. At the Waldron's Hill prospect (EL 23883) two of the seven rock chip samples returned significant gold assay result (max. 2.39ppm Au). Surface sampling at the Tulsa, Emma and Kroda prospect area (EL 26825, 29896) during the field mapping campaign confirmed gold mineralisation. The maximum gold assay result was 3.73 g/t from sample EMRK100040, which was collected 830m north-west of the Kroda 1 prospect along the interpreted extension of the mineralised north-west striking shear, and taken from a 10m long outcropping quartz vein (Vandenberg's geological map). The multi-element trends in the data of a 125 sample biogeochemical survey at the Kroda 1 (EL 26825) and Kroda 3 prospects (EL 29896) provide compelling evidence that the dominant plant species - mulga (Acacia aneura) - can assist in mapping structural breaks and perhaps lithology. Following a regional airborne electromagnetic survey earlier in the 2012 field season, a 2km long and 50m wide electromagnetic conductor was identified over the eastern Barrow Creek area, along strike of the Kroda 1 prospect (EL 26825), where anomalous copper had been intersected previously. The strength of the conductor indicated a possible accumulation of sulphide minerals and is coincident with a surface copper and zinc anomaly from historical geochemical sampling. This anomaly was named the 'Emma Prospect' (EL 26825). The Emma prospect was targeted with nine RC holes for a total of 2,234m. Results revealed wide intersections with pyrite (iron sulphide) mineralisation, combined with low-level but anomalous gold and copper mineralisation. The best intervals included 31m at 48 ppb gold (including 1m at 0.5 g/t gold) in hole EMRC100007, and 11m at 120ppm copper, including 1m at 470ppm copper in hole EMRC100006. Intersected stratigraphy included a sequence of quartz mica schist with andalusite porphyroblasts and was interpreted to be part of the Bullion Schist (meta-turbidite sequence). The quartz mica schist alternated with amphibolite lenses, interpreted as meta-dolerite. Two phases of metadolerite have been identified, with a different appearance and a different multi-element response.