Group Annual Report for EL's 9343, 9442, 9449, 10305, 10306, 24299, 24492, 24567, 24858, 24915, 24949, 25630, 25632, 25866, 27780, 27872, 27906, 28028, 29459, 29460 and 29483 GR165 Lake MacKay Project from 1 November 2014 to 31 October 2015

Abstract

ABM's Lake Mackay Project is located approximately 460km WNW of Alice Springs in the western Arunta region. The project comprises of 21 granted Exploration Licences 9343, 9442, 9449, 10305, 10306, 24299, 24492, 24567, 24858, 24915, 24949, 25630, 25632, 25866, 27780, 27872, 27906, 28028, 29459, 29460, and 29483. These tenements are amalgamated for group reporting GR 165/13. Fourteen of the Lake Mackay Project tenements are currently subject to a Joint Venture Agreement with Deep Yellow Limited (DYL) which has the right to explore the tenements for uranium. No work was undertaken by DYL during the reporting period. On the 20th August 2013, ABM signed an exploration agreement with the Independence Group NL., Perth (IGO) for ABM's Lake Mackay Project. IGO is currently exploring the Lake Mackay Project for gold. All on-ground exploration was conducted by IGO during the reporting period ending on 31st October 2015. Exploration during the reporting period consisted of infill surface geochemical sampling, geological mapping and aircore drilling of targets generated from the soil sampling. A total of 1,429 soil samples and 98 rock samples were collected from the project in this reporting period. 6 targets identified from the sampling were tested with aircore drilling consisting of 94 holes for a total of 3,258m. Three out of the 6 targets that were drill tested returned >1 g/t Au intercepts. The Bumblebee Prospect was the most significant. The best intercept at the Bumblebee Prospect was 7m at 3.29 g/t Au, 37.7g/t Ag, 3.25% Cu, 0.87% Pb, 1.43% Zn, 0.09% Bi and 0.08% Co from the Supergene zone where native Cu was observed in the drill chips. A preliminary interpretation of the Lithogeochemical data and Petrography of some drill chips suggests that the Bumblebee Prospect may be an Fe poor member of the IOCG deposit clan. Additional drilling and sampling will be required to confirm this. The field mapping on EL 24915 was started but was not completed until after the reporting period and will be included in the next annual report.