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 from 31 October 2013 to 31 January 2015

Abstract

Exploration Licences 22850, 23208, 23659, 24344, 24436, 24437, 25194, 25844, 26608, 26610, 26616, 27124, 27127, 27339, 27378, 27813, 28322, 28323, 28324, 28325, 28327 and 28328 form part of the ABM's Bonanza Project which currently comprises a total of 22 tenements. The Bonanza Project is located approximately 820km NW of Alice Springs near the border to Western Australia (Figure 1). Tenements are registered to Australian Tenement Holdings Pty Ltd (ATH), a wholly owned subsidiary of ABM Resources NL (ABM), a publicly listed company, and ABM directly. ABM explores the tenement for the potential for gold mineralisation. At the 28th of March 2014 Mineral Lease 29822 was granted to ABM. Mineral Lease 29822 covers parts of EL 28322. An application to amend the reporting date with a reporting period 1 February to 31 January for the Bonanza GR164 group report was approved. Exploration consisted of surface sampling (2,228 rock chip), prospect (1) and pit mapping (2), costean sampling (271 rock chip), a handheld X-ray fluorescent (XRF) analyzer program (347 locations), reconnaissance trips to locate potential quartz veins (212 locations) project wide, water bore (1) drilling and pump testing, the completion of the 6 month trial mining, an ABM internal reconciliation between grade control data, geology and head-grade and a reconciliation of the gold produced and ore milled by an independent metallurgist. None of the five samples collected on EL 28328 (Maverick) returned elevated gold assay results. On EL 24344 (Maverick South) 11 samples returned a maximum result of 0.04ppm Au. On EL 28327 the Vampire Prospect cluster is located approximately 14 kilometres north of the Old Pirate Deposit. Geologically, the area consists of quartz veins hosted primarily in a sandstone sedimentary sequence. The campaign discovered visible gold in surface sampling, and systematic longitudinal channel sampling of veins revealed a high-grade structure approximately 60 metres long with variable widths between 20cm and 60cm, which averaged 14g/t gold. The best results of the 852 samples collected were returned from sample VAMP109208 with 161 ppm Au and VAMP109204 with 157 ppm Au. It was recommended to increase the sampling density, accompanied by mapping and trenching. None of the 257 samples collected on EL 23208 (Jack) returned elevated gold assay results no further investigations were recommended. As a follow up on the previous systematic soil sampling in the area of the Beam and Casa prospects, on EL 26616, a total of 1100 rock chip samples of out cropping and sub cropping quartz veins were collected. The maximum assay result returned was 5.81ppm gold from sample W246446. Further work is planned at Beam-Casa prospects to better delineate the As and Au anomalies present there. Trenches are planned south of the exposed mineralised outcrop in an area where past soil geochemistry data showed encouraging results and the outcropping quartz veins disappear under recent aeolian and sheet-wash alluvial cover. On EL 28323 (Port and Capstan prospects) the three samples collected returned below detection limit ( less than 0.01ppm) gold assay values. XRF investigations were proposed. One water bore (M10A) for 90m was completed on EL 28322 to establish a monitoring bore for the Wilsons water bore. The pump test of M10A revealed an average aquifer transmissivity of 2.2 m2/d. One water sample was analysed returning 10,500 mg/l Total Dissolved Solids as well as 2,380 mg/l sulphate contents. The electrical conductivity (EC) profiling was completed averaging 16,585 Microsiemens Per Centimeter. As a result of several reconnaissance trips into under explored areas that had not been visited by ABM for some time, a total of 212 quartz vein outcrop locations were found and recorded. The use of a handheld XRF unit as a low cost exploration tool was trialled. Across The Tanami, significant gold deposits and targets are accompanied by broad, high level arsenic anomalies. Based on this empirical observation, ABM used an Innov-X Delta handheld XRF unit to measure arsenic response over Old Pirate, and a number of other known gold anomalous mineral systems. The trial was successful, and a series of 'threshold' values were determined. A result of >20ppm As (from HH XRF) will relate to potentially economic gold mineralisation, whereas a result of 45ppm As, or greater, will relate to potential ore grades. At the Capstan and Top Hat prospects (EL 28323) outcropping quartz veins, ironstone and chert were mapped and subsequently XRF tested with a line of readings across (max. 18.6ppm As) and one line (moderate arsenic results) along the interpreted fold nose of the prospect area. Follow up work to determine the nature of the of arsenic anomalism is recommended, Geological flitch mapping (EL 28322) was continued by mapping the exposed solid geology at the Golden Hind (GH_A) and quartz vein mapping at the Old Pirate South (OPS_A) open pit to a large scale. At the Golden Hind, geology is now interpreted to be a shear zone that hosts interbedded haematitic fine sands and silts with mineralized quartz stringers. Mapping at Old Pirate South interpreted the mineralized system in place as a shallow, south plunging M-fold. On the 3rd June 2013 trial mining (EL 28322) started which involved free-digging (no blasting required) of high-grade, gold-bearing material from the near-surface environment to a depth of between 1.5 and 5 metres. The trial mining was completed on the 20th December 2013. During the six months of trial mining, a total of 8,122 tonnes of ore, from 15 small pits, including Golden Hind, Old Pirate South, East-Side veins, SE Veins, Old Pirate Central / Eastern Limb and the Western Limb had been mined. Closed spaced costean trench sampling was undertaken as part of the trial mining exercise. A total of 271 vein / costean samples were collected at the Western Limb and at the Golden Hind Prospect. ABM's internal geological and grade control analysis showed that overall the mineralised system performed to expectation with several zones providing better than expected high-grade mineralised continuity. This trial mining (Stage 1) exercise revealed many new insights into the local scale geology and the distribution of mineralisation, with several new additional as well as extensional targets were generated. The trial mining confirmed the presence of shallowly plunging high-grade folded and thickened veins. The fold hinges plunge shallower than expected at 18 to 22. In April 2014 the trial mining plus the processing programme were analysed and reviewed by an independent metallurgist. This reconciliation of the gold produced and ore milled calculated that: 8,122 tonnes were processed. at 15.4g/t head-grade. 86% gold was recovered using the gravity methods. 3,454 ounces recovered. The overall trial mining result was a strong vindication of the project and has confirmed that Old Pirate is a high-grade deposit that can be mined to geological boundaries in an open-pit environment. The flitch mapping of the 2 small pits resulted in large scaled solid geological maps. In September 2014 the Old Pirate resource estimate was updated. It will be reported separately in the 2015 annual report for the new ML 29822. The data of 49 Rock chip samples (W229201 to W229249) on EL 28325 which were not reported in the previous annual report returned 13 samples with elevated gold assays (>0.1ppm). The best gold assay result from this set of samples was 19.25 ppm Au from rock chip sample W229220.