Group Annual Report for EL 23888 Stafford and EL 28083 Stafford SE Reynolds Range Project GR251 from 5 September 2014 to 4 September 2015

Abstract

The ABM Resources NL (ABM) Reynolds Range Project is located approximately 230 kilometres north-northwest of Alice Springs in the western Arunta region (Figure 1). The project comprises three granted Exploration Licences, EL 28083, EL 23888 and EL 23655. ABM explores the project for the potential of gold mineralisation. Exploration during the year included a pre-acquisition valuation of ABM's North Arunta Package (including EL 28083, EL 23888 ) by Clancy Exploration Ltd (ASX: CLY) ('Clancy') and an ABM field reconnaissance trip combined with XRF measurements and rock chip sampling by ABM. The pre-acquisition evaluation (SRK Consulting for Clancy) noted that the distribution of prospects appear to be zoned around the central intrusions of Agn and appearing to be preferentially emplaced along the Lander River Beds (Aall). The inner zone is marked by Sn and W deposits, followed outwards by gold, Cu and Cu-Au, and then copper and other base metals. ABM's 5 day field trip aimed at ground truthing a number of targets (based on existing geochemical response) with XRF sampling, mapping and rock chip sampling. The Assegai, Falchion, Sabre and Bayonet prospect locations were visited. 59 XRF samples were recorded and 78 rock chip samples were collected and multi - element assayed. Three elevated gold assay and two elevated arsenic results were returned. The maximum Au assay result was 3.38 ppm from ABM15LV053_R1 and the maximum As assay value was >10,000ppm (above the lab method's upper detection limit) from RRRK100122. The best XRF arsenic reading of 4124.06ppm came from RRXRF00019 at a quartz vein at the Falchion prospect. XRF results for Au typically did not exceed the standard deviation; however results for other elements (specifically As) did tend to highlight anomalism. Several occurrences of structurally controlled anomalous mineralisation were located and identified. At Falchion & Sabre: probable shear localised mineralisation trending 84 014 (anomalous As values) trending oblique to main milky-grey quartz veins hosted in fine grained quartz-metasandstone & biotite siltstone Lander Rock Formation; At Assegai: no substantial outcrop of Lander Rock Formation was found to assess potential mineralisation setting; the setting is surmised to be similar to Falchion & Sabre. At Bayonet due to limited outcrop the setting of mineralisation remained unclear. The field observations, the XRF and laboratory results suggest a follow up campaign aimed at targeted sampling, further characterisation and extension of known mineralisation and a discovery of previously unrecognised mineralisation in the area. As of 6 March 2015 the CLC restricted the access to the area south of the Assegai prospect (approximately 50% of the project area) except main access track for transit. The restriction was imposed pending review of previously issued approvals for access and consultation with the Traditional Aboriginal landholders.