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ASX ANNOUNCEMENT / MEDIA RELEASE ASX:ABU
23 March 2016
Geophysical Survey Results Enhance Bumblebee Prospect
ABM Resources NL ("ABM" or the "Company") is pleased to announce that results have been received for an electromagnetic (EM) survey completed by Independence Group NL ("IGO") at the Bumblebee Prospect that have further enhanced the potential of this promising exploration target.
Highlights
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Strong and clear conductor identified
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Coincident with surface geochemical anomaly and mineralised drill intercepts
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500 metres strike and greater than 200 metres depth extent
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Diamond drilling program and DHEM to follow in the June quarter
The Bumblebee Prospect was discovered in 2015 when initial air-core drilling of a multi-element surface geochemistry anomaly returned significant precious and base metal values, including 7 metres averaging 3.3g/t gold, 37.7g/t silver, 3.2% copper, 0.9% lead, 1.3% zinc and 0.08% cobalt approximately 30 metres
below surface (ASX 6 October 2015).
The recent EM survey identified a strong and clear conductor in a position consistent with the geochemical anomaly and the sulphides intersected by the air-core drilling. The conductor has a strike length of approximately 500 metres as shown in Figure 1 below.
The conductor has been modelled as a series of three contiguous plates along its strike. The middle plate, centred on easting 588,300mE, starts at 110 metres below surface and has been interpreted to have a steep southerly dip and an unconstrained depth extent of between 200 and 400 metres. The central plate is shown in cross-section in Figure 2, together with the air-core drill intercepts and preliminary interpretation of mineralisation.
The modelled conductor displays characteristics consistent with being associated with mineralisation, however in the absence of deeper drilling there is no conclusive evidence that the source of the conductor is the extension of mineralisation intersected in the air-core program. IGO are planning to drill a series of diamond holes to test the conductor and provide further information on its location, size and source. Down hole EM (DHEM) surveys will be carried out on these planned holes with the aim of further defining the target. This work is expected to be performed in the June quarter of 2016.
In addition to enhancing the prospectivity of the Bumblebee Prospect and providing a clear target for further drilling, the EM program appears to indicate that soil geochemistry and ground electromagnetic surveying could be effective and efficient exploration tools at the Lake Mackay Project.
Figure 1: Mid time channel 17 (3.1ms) showing the main central conductor
Figure 2: Cross-section on 588,300mE showing modelled plate and air-core drill hole intercepts
Location and Ownership
The Bumblebee Prospect is located within the Lake Mackay Project on exploration licence EL24915, a tenement wholly owned by ABM. IGO are conducting exploration on ABM's Lake Mackay tenements under an agreement executed in August 2013 (ASX release of 21 August 2013) under which IGO can elect to enter into a farm-in and joint venture agreement over the tenements. This agreement was extended in late 2015 (ASX release of 7 December 2015).
Figure 3: ABM project location plan
Bumblebee is situated close to the northern boundary of EL24915, however the mineralisation and the EM conductor have been interpreted to dip south towards the centre of the tenement. Exploration licence application EL29748, held by Castile Resources Pty Ltd ("Castile"), a subsidiary of Metals X Limited, is situated immediately north of EL24915. ABM and IGO have entered into a joint venture and farm-in agreement with Castile whereby they have the right to earn an interest up to 76.925% (pro-rata IGO 70% and ABM 30%) in EL29748.
Figure 4: EL 24915 geology plan
Details of the EM Program
Eight lines of slingram moving loop EM (MLEM) were completed over an area of geochemical anomalism defined by the soil sampling on EL24915. The completed lines did not fully cover the extent of the soil geochemical anomaly, though they did cover the strongest parts as well as the zone of mineralisation intersected in the 2015 aircore drilling. 200m square loops were used with 100m station spacing and 200m line spacing. A further three lines of infill MLEM surveying was completed to help define a large anomaly identified and ensure a robust drill target could be obtained. On completion of the program, 125 stations of MLEM for 11.4 line km of MLEM had been completed. All data have been collected in GDA94 MGA zone 52. Table 1 below shows the equipment and system configuration.
Table 1: Bumblebee MLTEM survey parameters
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Configuration
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Slingram
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Loop Size
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200m
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Line Spacing
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200m
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Station Spacing
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100m
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Total line km
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11.4
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Receiver system
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Smartem24
EMIT Fluxgate - Bz (up), Bx (north), By (west)
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Sensor Location
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200m north of loop Centre
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Transmitter
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IGO TEX II
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Effective current
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~60A
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Frequency
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1Hz
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Signed
Brett Lambert Managing Director
Competent Persons Statement
The information in this announcement relating to recent exploration results from the Lake Mackay Project is based on information compiled by Independence Group NL and reviewed / checked by Mr Alwin van Roij who is a Member of The Australasian Institute of Mining and Metallurgy. Mr van Roij is a full time employee of ABM Resources NL and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves". Mr van Roij consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.