Group Annual Report for EL 8766, 23880, 23883, 23884, 23885, 23886, 26825, 28515, 28727, 28748, 29723, 29724, 29725 and 29896, GR162/12 Barrow Creek Project from 10 September 2013 to 9 September 2014

Abstract

The Barrow Creek Project is located approximately 320km NNW of Alice in the western Arunta region (Figure 1). The number of granted exploration licences rose to fourteen, now including -8766, 23880, 23883, 23884, 23885, 23886, 26825, 28515, 28727, 28748, 29723, 29724, 29725 and 29896. 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 GR162/12 technical reporting group in July 2013. ABM explores the tenement for the potential of gold mineralisation. As ABM focused on bringing the high-grade Old Pirate Gold Deposit at its Bonanza project into production through staged development, which commenced in June 2013, ABM started to implement its divestment policy. In November 2013, as part of ABM?s divestment policy ABM reached an agreement with Clancy Exploration Ltd (ASX: CLY) ('Clancy') whereby Clancy will have the option to acquire 100% of ABM's interests in the North Arunta Regional Projects, which the GR-162-12 tenements form a part of. In March 2014 ABM conducted a one-day reconnaissance trip to introduce Clancy representatives to the ground. Clancy commenced a substantial program of compilation and re-processing of potential field datasets covering an Area of Influence (AOI) in the Tanami - North Arunta region, which includes the Barrow Creek project. This work was undertaken by Fathom Geophysics. Public domain data and closed file ABM surveys of Total Magnetic Intensity (TMI) data was processed using the differential Reduced to the Pole method to produce a selection of images for a later stage interpretation. The detailed differential Reduced to the Pole regional imagery by Fathom Geophysics was used by consultant Dr Leon Vandenberg to compile a 1:100,000 scale basement geology interpretation. By 2nd August 2014 Clancy had not completed the proposed transaction under the negotiated terms, and renegotiations were initiated. At the end of the reporting period, the renegotiations and investigations of alternative arrangements had not been finalised. 2013 recommendations and conclusions remained valid.