Group Annual Report for 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 Bonanza Project GR164 from 1 February 2015 to 31 January 2016

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. Exploration consisted of prospect (10) plus regional mapping, surface sampling (923 rock chip samples), a XRF analyser program (233 readings), drilling 73 slim RC holes for 5,070.5m plus 43 AC holes for 3,691m (total 3,445 drill chip samples). The water quality was monitored in 2 water bores (11 samples). The mapping resulted in an updated 1:500,000 merged regional basement map and a geological update of the geo-dynamic setting as well as the local geology of the Bonanza project. The mapping of the Vampire prospect area resulted in a geological map showing quartz veins and associated fault structures cross-cutting stratigraphy and transecting the limb of a southsouthwest trending anticlinal fold. Anticlinal folds are associated with deposits such as Old Pirate, Coyote and Callie in this region. Rock-formations include sandstone of the Ware Group and interbedded sandstone and shale of the Killi Killi Formation. The mapping in the Grand Maverick prospect area resulted in a 'work in progress' geological sketched map. The project wide ongoing rock chip sampling accompanied the geological mapping was reconnaissance sampling or was a precursor to help with the design of a drilling program. Best gold assay value returned was 33.9ppm (Sample ID W258170) located west of the Casa prospect on EL 26616. At the Casa prospect area (EL 26616) the drilling targeted areas beneath widespread, anomalous surface geochemistry. The best result (3 metres averaging 3.52g/t gold) was in the northernmost hole (hole ID CSAC100050) and hence potentially provides a vector to mineralisation to the north which should be followed up mapping and surface sampling. At the Black Cat prospect (EL 28325) drilling targeted 4 areas beneath outcropping quartz veins (with visible gold) and areas of historic shallow drilling with anomalous results. Most drill results were low-grade; however, re-split check sampling was undertaken on the higher grade results where visible gold was sighted in drill chips returned elevated assay results (Max. Au grade was 3 metres averaging 9.18g/t gold in BLAC100030. It was recommended to complete step out mapping and sampling along strike accompanied by trenching. At the Vampire prospect (EL 28327) the drilling programme was designed to test the high grade results at surface within the Ware Group and to test the conceptual target within the fold nose located to the west of the majority of outcrop. Drill results are mainly low-grade and did not emulate the high-grade results seen at surface. Best intercept encountered was 3m at 2.29g/t Au from VMAC100009. It was recommended to complete further interpretation of the structural geology to ascertain the plunge of the high-grade mineralisation within the quartz veins combined with further surface sampling.