Group Annual Report for EL's 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 from 1 February 2016 to 31 January 2017

Abstract

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 is exploring the tenements for the potential for gold mineralisation. Exploration Licences 22850, 23208, 24434, 24437, 25844, 26616, 27124, 27339, 27813 and 23823 expired on 30 June 2016 on amalgamation into four new Exploration Licences. The Bonanza project currently comprises the following 17 tenements: Exploration Licences EL 23659, 24436, 25194, 26608, 26610, 27127, 27378, 28322, 28324, 28325, 28327, 28328, 28394, 31288, 31289, 31290 and 31291. Due the completion of the Old Pirate mining operation in March 2016 ABM reorientated itself back to a company with a more streamlined exploration focused outlook and a divestment strategy which included the Bonanza Project plus the Old Pirate mineral lease ML 29822. Exploration consisted of 28 rock-chip samples and 20 soil samples on 3 tenements. The water quality was monitored in 1 water bore (M10A - 2 samples). The project wide ongoing rock chip sampling focused on the Maverick and Syrene granite as possible granite-related porphyry (Buccaneer deposit) gold systems and minor Capstan prospect reconnaissance sampling. The maximum gold assay value returned 0.023 ppm Au from sample G106214 (500m west of the Capstan prospect on EL 31291). Recommendations deriving from the systematic soil sampling at the Syrene prospect area (EL 27589 and EL 24436) will be included in the 2018 GR 164 report. The ground water sampling results indicated a similar result as the 2015 water quality. Proposed work for the 2017 field season will employ wide-spaced shallow RAB drilling as a reconnaissance tool rather than soil sampling. Angled RAB and RC drilling is proposed for defined targets.