Group Annual Report for Bluebush Project EL 23659, EL 24436, EL 26610, EL 27127, EL 28327, EL 31288, EL 31290 and EL 31291 from 1 February 2017 to 31 January 2018 and EL 27119 and EL 27589 from 23 August 2016 to 31 January 2018 and EL 29860 from 14 September 2016 to 31 January 2018

Abstract

The Bluebush project is located approximately 800km 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 gold mineralisation. The Bluebush project currently comprises 11 Exploration Licences - EL 23659, 24436, 26610, 27127, 28327, 31288, 31290, 31291, 27119, 27589 and 29860. In January 2018 a decision was made to split the Bonanza project into two separate reporting groups in line with changes in ABM's geological model. In February 2018 ABM's application to establish a new group status for 11 of the Bonanza project GR164 tenements was approved. For the newly formed group GR 479 named the Bluebush project the reporting period was kept as before 1 February 2017 to 31 January 2018. In 2017 ABM's exploration strategy concentrated on areas dominated by Dead Bullock Formation and folding and faulting complexity as highlighted in ABM's 2016 prospectivity study. Exploration during the year included 340 surface samples and 159 Aircore holes for 8474m. The surface samples plus the 159 2017 AC EOH samples were used in a (when writing this report) work in progress lithogeochemistry study in partnership with the CSIRO resulting in a geological map showing combined the bed rock geology and the lithogeochemistry (Figure 2). Significant first pass reconnaissance drilling results were received at the northern end of the Capstan prospect area (EL 31291). An 8km long anomalous zone was delineated and should be tested with a combination of RAB/AC drilling and RC drilling. The anomalous results included 6m at 248 ppb Au from 39m (BL0003), 39m at 24ppb Au from 21m including 3m at 92ppb from 42m (BL0019) and 15m at 32ppb Au from 42m (BL0030). To the north of the NW- SE trending fault drilling intersected micaceous sandstones, greywackes and siltstones. To the south of the fault drilling intersected silicified siltstones, cherts and minor sandstones. The anomalous results appear to correlate with the NW- SE trending fault, which intersects the folded stratigraphy. Lithogeochemistry confirmed that Dead Bullock Formation was only intersected in the centre of the eastern most drill line (Figure 2). The drilling identified a significant leaching profile up to 40m depth. The drilling over the Indefatigable (EL 31291) and Wild Turkey prospect (EL 27119) areas were not successful at highlighting any gold anomalous areas. Results from the systematic soil sampling at the Syrene prospect area (EL 27589) in 2016 which were not included in the 2017 Bonanza report are now included in this report. No recommendations deriving from the 2016 soil sampling at the Syrene prospect area were made. The completion of closer spaced aeromagnetic data was proposed.