Annual Report for Mineral Lease 29822 Twin Bonanza 1 from 28 March 2015 to 27 March 2016

Abstract

At the 28th of March 2014 Mineral Lease 29822 was granted to ABM Resources NL a publicly listed company (ABM) for a period of 25 years. The ML 29822 of 3.26 square kilometre forms part of ABM's Twin Bonanza Project which is located approximately 820km NW of Alice Springs near the border to Western Australia (Figure 1). ABM explores the tenement for the potential for gold mineralisation. Exploration consisted of surface sampling, trench mapping, and drilling. Mining activities took place during the entire reporting period. A total 53 sRC holes for 3,561m and 48 Air Core holes for 3,305m were completed. One 200m long east west trench which forms part of the diversion drains south of the mining camp was mapped and selectively sampled. Best gold assay value returned was 0.54ppm. Drilling at the Bandit prospect failed to extend or confirm continuous zones of high grade gold mineralisation. A maximum gold assay value of 23.5 ppm was returned from a depth interval of 33-34m in BTAC100019. Drilling at the Buccaneer deposit confirmed significant widths of high-grade mineralisation in the shallowest parts of the Buccaneer deposit. The metallurgical test work carried out on selected diamond drill core intervals drilled at Buccaneer in 2014, representing oxide to oxide/fresh transition material, have demonstrated excellent gold recoveries using conventional cyanide leaching at grind sizes from 75 micrometre to 150 micrometre and also achieved good performance (81%) on material crushed to 10 mm, indicating potential for processing via heap leaching. Mining activities at the Old Pirate restarted at the following dates: Mining commenced 9 March 2015; Milling commenced 26 May 2015 at the Coyote processing plant; First gold poured 17 June 2015. In November 2015 difficulties in reconciliation of key mining data led to an adjustment of the mining plan. Principal changes to the open pit designs were the reductions of the pit depths at Old Pirate Central by 10 metres and at Old Pirate South by 25 metres. These changes led to the completion of mining at end of March 2016, with all pits reaching final depth and five metre 'good bye cuts' excavated on retreat. Until 31 March 2016 a total of 155,176 tonnes of ore were mined containing 29,526 ounces of gold. Processing of stockpiles at the Coyote plant was scheduled for completion by mid-April 2016.