Annual Report for Mineral Lease 29822 Twin Bonanza 1 from 28th March 2016 to 27th March 2017

Abstract

In 2016 the third year of term exploration included groundwater monitoring and sampling as well as a resource re-estimate. No on-ground exploration was completed. Mining had ceased 30 March 2016 and processing of stockpiles at the Coyote plant was completed during the June 2016 quarter taking the total fully reconciled gold production from the project to 29,376 ounces. ABM engaged Saprolite Environmental Pty Ltd (Saprolite) to compile, present and analyse groundwater monitoring data collected during 2016. Groundwater monitoring events were conducted in March, June and December 2016. Regarding the water quality a few minor exceedances of warning and trigger levels were noted. In bore M05 and M07, the warning level for sulphate were slightly exceeded but dropped back to low and average levels in December 2016. In bore A01 fluoride exceeded the trigger level for March, but returned to historical levels in June 2016. Comparison of pre-operational and operational monitoring results and with those from the analogue bores in both fractured rock and palaeochannel aquifers suggested that the original objective of maintaining a similar level of water quality post closure as was present in the pre-mine environment have been met. Saprolite's report presented a review of the groundwater monitoring schedule and future reduced requirements, in light of cessation of mining activities and reduced site presence. Following the completion of mining ABM commissioned independent CSA Global Pty Ltd ('CSA Global') to re-estimate the mineral resource for the Old Pirate Gold Mine. CSA Global re-estimated the Old Pirate Mineral Resource above a cut-off grade of 1 g/t Au and depleted for mining. The total indicated and inferred resource has 760,000 tonnes of ore at a grade of 4.7g/t gold containing 114,900 ounces of gold. The Mineral Resource presents a material decrease in tonnage, grade and contained ounces, compared to the Mineral Resource published in 2014. The 'CSA Global' competent person and ABM believe there are reasonable prospects for eventual economic extraction of the Mineral Resource.