Group annual report EL 9250, EL 26619, EL 27125, EL 27126, EL 27979, EL 31330 and EL 31331 Suplejack Project GR166 from 30 November 2015 to 29 November 2016

Abstract

The Suplejack Project is located approximately 700km NNW of Alice Springs in the northern portion of the Tanami Desert. The project currently comprises seven granted Exploration Licences - ELs 9250, 26619, 27125, 27126, 27979, 31330 and 31331. ABM is exploring the tenements for the potential of gold mineralisation. In March 2016, 37 blocks were relinquished from EL 27566. With effect from 13 July 2016, ELs 26483, 27566 and 27812 expired upon grant of replacement EL 31331. ELs 26609 and 28333 expired effective 26 August 2016 upon grant of replacement EL 31330. In 2016 all exploration was focused on EL 9250 and consisted of tenement and prospect wide geological mapping including the collection of historic drill spoil samples, the completion of 94 RC holes for 9,522m, 7 RC pre-collared diamond core holes for 1,831m, 3,716 downhole XRF readings were collected over all drill holes the collection of 320 geochemical soil samples plus 490 rock chip samples at several prospects. The mapping resulted in an interpreted geological basement map at a scale of 1: 20,000. Numerous mafic units of the Suplejack trend were defined. The lithogeochemistry deriving from the multi - element results of the surface and historic drill spoil sampling complemented this. Additional east-southeast trending veins were identified around the Stoney Ridge prospect and towards the Pandora prospect. Quartz breccia and zoned alteration trends highlight the possibility of porphyry related mineralisation. Regional mapping around Brokenwood prospect and Limestone Ridge identified packages of basalt, gabbro and andesite / rhyolite. A trial soil sampling program was completed covering Hyperion prospect in detail (10m x 50m sample spacing), the Hyperion / Tethys structure in moderate detail (250m x 250m) and extended at 1km x 1km spacing across Telesto, Stoney Ridge and Jasper Hill. The 10m x 50m spaced soil samples over the core of known mineralisation at Hyperion had a strong gold and arsenic response in the hanging wall to the mineralised structure despite the presence of 3 - 5m of transported cover. Values are multiple of the background of the survey and the tight spaced sampling was effective in delineating mineralisation and trends. The wider spaced samples at 250m x 250m also confirms further strike extents to mineralisation and appears to be an optimal spacing to extend mineralisation at Hyperion and identify mineralisation elsewhere. However, the results are clouded by additional anomalous results over topographic highs, which form discrete zones with assays an order of magnitude higher than background. 1km spaced samples are thought to be sufficient to determine system scale footprints. Whilst we already know that the Suplejack system is already defined by more detailed work, the kilometre spacing was extended towards the east over the lesser explored Telesto block. Results show patchy anomalism in line with the 250m x 250m grid and elevated results predominantly over exposed regolith. Initial mineralisation at the north-south Seuss structure was confirmed with 27 rock chips returning grades of up to 3.02ppm, and an average grade of 0.8ppm. Anomalous rock chips and a mapped outline of the structure define a 300m strike extent, and a width varying between 5 - 15m. Numerous +1ppm Au gold results were returned from outcropping quartz at the Brokenwood and Stoney Ridge targets with a maximum of 77.7ppm gold at Brokenwood. The drilling program followed the 2015 recommendations significantly and comprised infill plus extensional drilling at Tethys (previously named Hyperion East), Hyperion South as well as step out drilling further to the east and west of Hyperion along the same mineralised structure plus the drilling of the newly discovered Suess Breccia Fault and new prospects on EL 9250. The RC drilling demonstrated that gold mineralisation extends along the east-west striking Hyperion-Tethys trend for at least 1,300 metres. The RC drilling at all eight prospects returned anomalous gold intercepts of greater than 0.1g/t, confirming the potential of Suplejack to host a camp scale gold system. Drilling has confirmed the recently discovered Suess Breccia as a north-south striking structure with mineralization open along strike and down dip and observations from diamond core aid the understanding of the shoot controls. The data has resulted in the identification of other structures with similar characteristics to those seen in the southern part of the Suplejack Project. Numerous significant gold intercepts were returned including: HSRD100002 (Hyperion South) - 9 metres at 5.4 g/t gold; TYRC100001 - 17 metres at 5.7g/t; TYRD100003 (Suess) - 13 metres at 5.6 g/t gold; TYRC100028 - 7m at 13.2g/t gold. The down hole XRF readings were collected to establish a general initial multi-element dataset. The data set was visually checked and apart of the expected gold - arsenic association no relation between the base metal XRF-readings and the elevated gold assay values could be established. It was recommended; to continue the geological modelling, and 3D structural interpretation and grade estimation for an update on the Hyperion-Tethys and Seuss Mineral Resource model (EL 9250) plus a resource review of the mineralisation at Tregony prospect (EL 31331); to continue the definition drilling of the Suess Breccia; and to rank and prioritise other Suplejack Project targets as part of the strategic review of ABM's target portfolio