ABM Resources NL (ASX:ABU) First Results from Old Glory: Potential for Third Open Pit

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Perth, Australia, Nov 16, 2012 - (ABN Newswire) - ABM Resources NL (ASX:ABU.AX - News) is pleased to announce the first ever drill results and further systematic sampling from the Old Glory Prospect located 500m south of the Old Pirate Deposit.

Highlights from Old Glory Prospect (located 500m south of Old Pirate Deposit)

- Surface vein sampling:
- - Mineralisation extends over multiple surface veins (average width 0.5m) with? 285m of strike length vein sampled averaging 4.24g/t gold.

- The first two reconnaissance drill holes on the prospect both intersected mineralised zones with:
- - OPRC1000176 intersecting 3m averaging 8.33g/t gold from 8m down hole and
- - OPRC1000175 intersecting 5m averaging 7.36g/t gold from 10m down hole.

- More than 200m strike-length of surface mineralised vein remains to be tested with drilling.

Darren Holden, Managing Director, said, "These latest results confirm yet another surface gold discovery in the environs of Old Pirate. The Old Glory veins were previously thought to be unprospective. However, the latest sampling results show more extensive mineralised veins and the first two drill holes intersected significant mineralisation. With the discovery from surface, Old Glory demonstrates the potential for a third open pit alongside the Old Pirate and Golden Hind discoveries."

Old Glory

The Old Glory Prospect is a quartz-vein outcrop approximately 500m south of Old Pirate and 250m north of Golden Hind. The area consists of multiple outcrops of quartz veins between 0.2 and 5m wide.
The Company recently conducted surface sampling and an initial two-hole reconnaissance drill program at Old Glory. The surface sampling showed that the mineralised quartz veins are more extensive than previously thought.

Both drill holes completed at Old Glory focused on the southern end of the prospect where previous surface sampling revealed grades up to 136g/t gold. Both holes intersected mineralisation with 3m averaging 8.33g/t gold and 5m averaging 7.36g/t respectively. The central part of Old Glory with surface sampling results up to 61.70g/t gold and the northern part with multiple veins with surface results up to 76.40g/t gold remain to be drill tested.

2012 Vein Discoveries, Implications for Resource Development and Next Steps

ABM has explored Old Pirate since 2010. It was the innovation of using systematic surface sampling in mid 2011 that allowed the Company to better understand the coarse gold and the associated statistical nugget effect. In April 2012 the Company announced a maiden inferred and indicated resource totalling 565,000 ounces of gold averaging 10.5g/t gold (uncut) at Old Pirate (refer Appendix 3).

Recent metallurgical test-work indicates that gold liberates readily from the quartz veins using simple crushing and gravity separation methods. Further to existing resource estimation, ABM has conducted extensional exploration drilling, extensional surface sampling and has also drill-confirmed a new discovery at the Golden Hind Prospect located 800 metres south of Old Pirate.

Old Pirate sits on the same exploration license as the large-scale / bulk-tonnage Buccaneer Porphyry Gold Deposit.

Upon assessment of the overall scale and completion of requisite studies over the Old Pirate project area, which includes base-line environmental surveys, the Company will be in a position to apply for a mining lease. Environmental work has been conducted in tandem with on-ground exploration. The Company has also recently applied for a permit to conduct a 10,000 tonne bulk sample / trial mining exercise at Old Pirate. The purpose of the trial mining will be to reconcile mineable widths, grade and metallurgical recoveries.

Surface Vein Sampling Rationale and Sampling Method

Gold in the Old Pirate area can be coarse (up to 5mm gold grains) and is hosted within quartz veins. However, the distribution of the gold within these veins is not uniform, and hence drilling will likely under-call the overall grade due to the fact that there is a less than 1 in 5 chance of intersecting mineralised grades in any particular part of the vein.

Upon advice from external consultants, rigorous and systematic sampling of the quartz along the strike length of veins at Old Pirate was proposed. This work is akin to grade control of the first mining bench at Old Pirate.

Over 700m of sampling was conducted in 2011 and combined with drilling to estimate the gold resources at Old Pirate (16/04/2012). ABM has recommenced the program in 2012 of which the ongoing work is presented here. This information, along with statistical parameters and extents of mineralisation, will be used to aid with further drilling and resource work.

The process for the surface sampling program is:

1. Natural outcropping veins are mapped for location and width and sampled at 1 metre strike length intervals.
2. A small digger then exposes those parts of the veins that are hidden underneath shallow soil cover to provide a combined map of natural outcrop and exposed quartz vein.
3. For each metre of exposed quartz vein (both in natural outcrop and cleared veins) two representative samples of up to 10kg are collected. Quartz is selected systematically in a grid pattern so as not to bias individual samples. Both samples are sent to the laboratory.
4. The sample width depends on the width of the vein or exposed areas. In cases where the vein width is generally greater than 1 metre, multiple samples may be collected across the vein. On narrow portions of the vein (e.g. less than 20cm) estimating the actual width is difficult due to the oxidised surrounding shale being intermingled with the vein.
5. The maximum depth of the digging is 60cm (due to permit regulations, safety considerations and to minimise environmental impact). If the soil cover is greater than 60cm then sampling does not take place despite the likelihood of the vein continuing beneath 60cm.
6. Samples are processed by ALS Global in Alice Springs (NT), and ALS Global in Perth (WA) where they are weighed and analysed using regular fire assay (AA26D). Samples greater than 100g/t are re-assayed using AA26D / Over Limit Dilution method.
7. Overall statistics and spatial distribution for vein strike length and grade are calculated by measuring sampled portions of vein (including a projection of short lengths (8. Samples are surveyed with a hand-held GPS using waypoint averaging for ~20cm spatial accuracy.
9. Surface samples are weighted for sample width prior to being used in any resource estimation work.

To view all table and chart datta, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ABU-613988.pdf


About ABM Resources NL:

ABM Resources (ASX:ABU.AX - News) is an exploration company developing several gold discoveries in the Central Desert region of the Northern Territory of Australia. The Company has a multi-tiered approach to exploration and development with a combination of high grade potentially short-term production scenarios such as Old Pirate and the Golden Hind, large scale discoveries such as Buccaneer, and regional exploration discoveries such as the Kroda Gold Project. In addition, ABM Resources is committed to regional exploration programs throughout its extensive holdings.

Contact:

 
ABM Resources NL
T: +61-8-9423-9777
F: +61-8-9423-9733
WWW: www.abmresources.com.au
 

Source:

ABM Resources NL

Copyright (C) 2012 ABN Newswire. All rights reserved.

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