ASX ANNOUNCEMENT / MEDIA RELEASE ASX:ABU
11 October 2016
ABM provides strategy update and announces commencement of diamond drilling at Suplejack
Highlights
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New leadership team in place and strategic initiatives underway to unlock value within the Company's portfolio
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Implementation of a focussed exploration strategy on ABM's under-explored and highly prospective tenement holdings in the Tanami region
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Divestment process to explore potential monetisation of the Bonanza Project, including Old Pirate and Buccaneer
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Early stage exploration projects being evaluated for joint venture (JV) interest
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Diamond drilling at Suplejack has intersected mineralisation
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Independence Group (IGO) to commence RC drilling at Lake Mackay
ABM Resources NL ("ABM" or the "Company") provides the following update on the Company's activities.
New Strategy and Leadership
ABM has developed and is executing a clear and focussed strategy to unlock the potential of its large tenement holding in the premier, under-explored Tanami gold mining district. Management and Board are implementing the following key initiatives:
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Rationalise the portfolio through the divestment of assets that no longer fit with ABM's strategy
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Expedite discovery on early stage exploration areas through JV with strong partners
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Aggressive exploration targeting new, world class gold deposits
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Rapidly progressing the highest quality advanced targets to Resource
The new leadership under experienced geologists, Tommy McKeith (Chairman) and Matt Briggs (Managing Director), has seen rapid implementation of ABM's growth strategy. The strategy reflects the shift from mining to a focussed exploration company. Mr McKeith and Mr Briggs bring a combined 50 years of experience in gold exploration and were both involved in the discovery of multiple deposits. They are driving a review of ABM's project areas, targets and approach to exploration, while drilling continues on the high quality prospects at Suplejack (Figure 1). The tenement holding has been split into geological based areas to be ranked and prioritised for work in line with the strategy. As part of this review some projects are already being considered for JV or divestment.
Managing Director of ABM, Matt Briggs, said: "This is the only gold opportunity of its kind in Australia
- an unmatched package of highly prospective and under-explored gold country. The company has supportive shareholders and the funding to rapidly progress exploration on the portfolio and add value through discovery."
Figure 1: ABM tenement map
Bonanza Divestment Process
Following the receipt of several unsolicited expressions of interest in the Bonanza Project, ABM has commenced a formal process to invite third party interest. The potential divestment would include the Resources at Old Pirate and Buccaneer. Due diligence is currently underway by a number of companies and ABM expects to be in a position to provide a further update to shareholders on the sale process towards the end of the year. Any decision on whether or not to divest, or JV, any assets will depend on whether offers received represent superior value for ABM shareholders. A successful divestment would provide additional funding to expedite exploration and discovery on ABM's highest priority projects.
JV discussions commenced on Tanami
Discussions are underway to JV the South Tanami Project. External funding and technical collaboration would allow the development and testing of earlier stage targets while retaining a material interest in any discoveries made. With a partner, ABM could bring forward a world class discovery while progressing its emerging camp scale opportunity at Suplejack.
Diamond Drilling is underway at Suplejack
The Hyperion-Tethys Prospect is situated within the emerging camp-scale Suplejack Project on exploration license EL9250. RC drilling carried out in June 2016 demonstrated that significant gold mineralisation extends along the east-west striking Hyperion-Tethys trend for at least 1,300 metres (ASX 18 July 2016). Drilling has confirmed gold mineralisation exhibiting both strong grades and widths and significant potential exists to extend the current resource of 3.0Mt at 2.11 g/t gold for 202,200oz (Appendix 2). Suplejack is an emerging camp-scale target containing multiple advanced drilling prospects. The Hyperion-Tethys Prospect was previously drilled to less than an average 80m below surface (Figure 2).
Figure 2: Longitudinal Projection of the Hyperion-Tethys Prospect showing planned drilling intersections
Diamond drilling has commenced on the Hyperion-Tethys Prospect. The program includes drilling approximately 2,000 metres of RC pre-collars and diamond core, and is scheduled to be completed during November 2016. This program aims to improve understanding of the shoot controls along the 1,300 metre trend. Additionally in the current program and in future drilling, ABM aims to significantly extend mineralisation along strike and down dip. The Company is also advancing work on the first of multiple parallel structures identified in the area, including Hyperion South (ASX 25 August 2016).
The first diamond drill hole, HYDD100001, has been completed. This hole intersected strong veining and alteration at the targeted depth confirming ABM geologist's interpretation. Sericite-silica alteration and quartz-carbonate-pyrite veining were intersected over a broad interval with the most intense interval at 190.5 to 200.2 metres (Figure 3).
Figure 3: Core tray photograph of HYDD100001 with depths annotated from 190.5 to 200.2 metres. Note the moderate- strongly silica-sericite-pyrite altered dolerite with quartz-carbonate-pyrite veining with sulphide laminations
New Fault Breccia Identified at Tethys (Suess Fault)
The drill program underway will also test the interpretation of a new structure, the Suess Fault. This structure which was identified in surface mapping, has been confirmed as mineralised through assaying of rock chip samples. Assaying for gold returned results of up to 6.3 g/t gold from outcrop (see Appendix 1 for a full listing of surface samples at Suess). The North-South striking structure is mapped for more than 300 metres on surface (Figure 4), and potentially extends under shallow cover to the North and South. Currently a single hole is planned to test the orientation of the new structure however the program will be revised if this hole successfully confirms the interpretation. The intersection of Suess with the Hyperion-Tethys structure is coincident with the multiple intersections/shallowing of dip previously reported on section 614180mE Figure 5 (ASX 25 August 2016).
Figure 4: Plan of the Hyperion-Tethys Prospect showing the position of the Suess fault breccia mapped at surface
Figure 5: Hyperion-Tethys Cross-section looking west at 614180mE