ASX ANNOUNCEMENT / MEDIA RELEASE ASX:ABU

20 February 2017

SUPLEJACK: 53% INCREASE IN INDICATED AND INFERRED RESOURCES TO 309,900 OZ OF GOLD

ABM Resources NL ("ABM" or the "Company") is pleased to announce an increased Mineral Resource estimate for the Suplejack Project

Highlights

  • Suplejack Mineral Resource increases to 309,900 ounces, representing a 53% increase in ounces of gold

  • JORC 2012 Code compliant Mineral Resource of 4.51 million tonnes at 2.1 g/t Au for 309,900 ounces of gold above a 0.8 g/t cut-off and within 180 metres of surface

  • First declaration of Indicated Resource at Suplejack of 0.93 million tonnes at 2.34 g/t Au for 70,200 ounces of gold

  • First Resources declared on the recently discovered Seuss Fault

  • Resource now based 100% on reverse circulation and diamond drilling

  • Grade estimation generated by independent specialists, Optiro Pty Ltd, under ABM's guidance

  • Drilling to recommence at Seuss as soon as the wet weather breaks

Managing Director Matt Briggs said "A high quality Resource estimate gives ABM confidence in the continued growth at Suplejack towards the company's target for the project to be a standalone operation. I am excited to get the rigs back out to Seuss and the surrounding targets to continue growing the Resources at Suplejack. RC drilling will recommence at Suplejack as soon as the wet season breaks. Initial drilling will test strike extensions of Seuss and structures parallel to Hyperion-Tethys."

Background

The Hyperion-Tethys Prospect is situated within the emerging camp-scale Suplejack Project on exploration license EL9250 (Figure 1). The area has historically received sporadic exploration with many prospective targets yet to be tested with bedrock drilling. Shallow drilling often ended in the depleted oxide zone testing the area ineffectively. Recent RC and diamond drilling in 2016 has delineated 4 shoots on the Hyperion-Tethys Structure over its 1.3km length and defined the first Resources at Seuss. As part of its focused exploration strategy ABM is growing Resources at Suplejack and progressing the discovery of new standalone projects.

Resource update

The 2017 Resource declaration totals 4.51 million tonnes at 2.14 g/t for 309,900 ounces of gold. Resources are quoted above a 0.8g/t Au cut-off and above the 230mRL (160-180m vertically below surface) to limit the inventory reported to align with the future prospects of eventual economic open pit extraction.

Drilling completed during late 2016 led to the declaration of the first Resources at Seuss, Resource growth at Hyperion-Tethys and an updated geological interpretation on Hyperion South. Suplejack now has its first Indicated Resource of 0.93 million tonnes at 2.34 g/t for 70,200 ounces of gold. The statement also includes the first Resources declared on the recent Seuss discovery of 0.63 million tonnes at 2.85 g/t for 57,300 ounces of gold. Resource details of each structure and their classification are outlined in Table 1.

Suplejack Project - Mineral Resource Estimate - February 2017

Area

Tonnes

Grade

Ounces

Tonnes

Grade

Ounces

Tonnes

Grade

Ounces

Million t

Au g/t

Oz

Million t

Au g/t

Oz

Million t

Au g/t

Oz

Indicated

Inferred

Total

Oxide

Hyperion-Tethys

0.04

1.70

2,300

0.21

3.01

20,500

0.25

2.79

22,800

Seuss

0.17

2.48

13,600

0.17

2.48

13,600

Hyperion South

0.03

1.19

1,300

0.03

1.19

1,300

Total

0.04

1.7

2,300

0.42

2.65

35,400

0.46

2.56

37,700

Transitional

Hyperion-Tethys

0.30

1.69

16,400

0.78

2.16

54,200

1.08

2.03

70,600

Seuss

0.14

2.78

12,800

0.14

2.78

12,800

Hyperion South

0.09

1.31

3,800

0.09

1.31

3,800

Total

0.30

1.69

16,400

1.00

2.17

70,800

1.32

2.06

87,200

Fresh

Hyperion-Tethys

0.59

2.72

51,600

1.59

1.69

86,100

2.18

1.97

137,600

Seuss

0.31

3.07

30,900

0.31

3.07

30,900

Hyperion South

0.25

2.07

16,400

0.25

2.07

16,400

Total

0.59

2.72

51,600

2.15

1.93

133,400

2.74

2.10

184,900

Deposit Total

Hyperion-Tethys

0.93

2.34

70,200

2.58

1.94

160,800

3.51

2.04

231,000

Seuss

0.63

2.85

57,300

0.63

2.85

57,300

Hyperion South

0.37

1.80

21,500

0.37

1.80

21,500

Total

0.93

2.34

70,200

3.58

2.08

239,600

4.51

2.14

309,900

Table 1 - Suplejack Project Area reported above 0.8g/t cut-off and above the 230mRL. Resources may not sum to equal totals due to rounding

Data validation, geological interpretation and modelling were completed by ABM geologists. To ensure the highest standard of grade estimation, industry leading experts at Optiro Pty Ltd were commissioned to generate the grade estimate and Resource tabulation.

Resources added during the period exceed the difference between the 2017 and 2012 Resource models. The previous Resource declared in 2012 (ASX 12 April 2012) was interpreted using Leapfrog generated grade shells. The volumes predicted, in particular those based on single isolated drill holes at Hyperion and Hyperion South, were not supported by the drilling completed by ABM in 2016. The 2017 model honours the shoot controlled nature of mineralisation, the thicknesses intersected in drilling, and forms a robust platform to grow the deposit in the future.

Seuss is open in all directions (Figure 6b). A historic RAB hole drilled 600 metres to the north of the Seuss Resource intersected 3 metres at 0.55g/t gold from 24 metres. This is now interpreted to be the along

strike continuation of the Seuss structure, providing encouragement that the structure continues to the North. Future drilling will confirm if this is Seuss or a structure analogous to Hyperion-Tethys.

Hyperion-Tethys is open along strike and at depth, although the structure is trending into areas of basalt cover. These extensions are a lower priority while ABM has shallower targets to test, such as those illustrated in Figures 1 and 2.

Figure 1 - Southern Suplejack Project Area and structures being targeted in planned 2017 drilling Figure 2 - Hyperion-Tethys Prospect collar plan

Geology

Gold mineralisation at Suplejack has geological similarities to the nearby Groundrush Gold Deposit, which is located 19 kilometres to the south west of the Hyperion-Tethys Prospect. The mineralisation is principally hosted in structurally controlled quartz-carbonate-sulphide veins in shear zones hosted within dolerites and occasionally intruded by granitic dykes.

The mineralisation at the Hyperion and Tethys prospects and Hyperion South is associated with a structural break between regional North-South trending thrust faults. At the Hyperion Prospect, this is a shear zone hosted in differentiated dolerite, typically intruded by granitic dykes. These granitic intrusions are absent at Tethys. The shear zone generally trends at approximately 106 degrees (Figure 2) and dips towards the south at 60-80 degrees (Figure 3). The structure is typically between 4 to 13 metres thick with an average of approximately 6 metres true width.

Drilling has defined the Hyperion-Tethys mineralisation over a strike length of 1,300 metres. Mineralisation extends from surface to a depth of at least 250 metres below surface. In some areas mineralisation is leached in the upper parts of the system with mineralisation tenor increasing from 20 metres below surface.

Mineralisation is characterised by a visible shear texture, quartz veining, and pyrite. The shear is recognized by an increase of quartz veining and the intrusion of one or two parallel felsic dykes. Other identifiers are strong structural deformation in diamond core, and visible fabric development in RC chips, as well as typically elevated arsenic readings from handheld XRF data.

ABM Resources NL published this content on 20 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 19 February 2017 23:13:07 UTC.

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