ABM Resources NL ('ABM' or 'the Company') is pleased to provide an update on recent drilling in the Du Faur Project area, part of the Company's Lake Mackay alliance with Independence Group NL ('IGO') (ASX:IGO).
The Bumblebee Prospect Discovery:
Located 55 kilometres north east of the town of Kintore and 400 kilometres west of Alice Springs in the Northern Territory and part of the wider Du Faur Project area / Warumpi Margin Project.
First drill results from the oxide, supergene and fresh-rock (sulphide) zones respectively at the Bumblebee Prospect include:
Multi-element surface geochemistry anomaly > 1 kilometre in strike length
Metal association and geology indicate analogies to Cloncurry style iron oxide copper gold (IOCG) deposits.
Next Steps at Bumblebee and Surrounding Areas:
IGO and ABM to extend the alliance in this region
Further exploration to include geophysics, geochemistry and drilling.
Darren Holden, Managing Director of ABM Resources said, 'This is a remarkable set of first drill results from Bumblebee. These results are not only a new discovery, but as the first high-grade drill results in this entire region potentially herald a whole new mineral district. We look forward to bringing you further updates on this exciting development.'
Du Faur Project Area (EL24915) including Bumblebee Discovery
The Bumblebee Prospect is located within the Du Faur Project area (EL24915) approximately 55 kilometres north east of Kintore, 17 kilometres north of the Gary Junction Road and ~400 kilometres west of Alice Springs in the Northern Territory.
In the second half of 2014, Independence Group NL (IGO), in alliance with ABM, conducted broad spaced soil sampling throughout EL24915. This program identified numerous multi-element soil anomalies and also a rock sample was collected that returned results including 1.60% nickel, 1.61% cobalt and 38.5% manganese (refer release 30/01/2015).
As part of the follow up work, IGO recently drill tested numerous geochemistry anomalies with a shallow air-core drill program.
Drilling at the Bumblebee Prospect intersected gold, silver, copper, lead, zinc and cobalt mineralisation in the oxide zone, in a supergene-enriched zone and in fresh rock (refer Figure 1). The oxide zone mineralogy includes malachite, azurite and chrysocolla (secondary copper oxide minerals) with native copper in the supergene zone. In the fresh rock, minerals observed include chalcopyrite (copper sulphide), pyrite (iron sulphide) and magnetite (iron oxide).
The Bumblebee Prospect consists of a multi-element soil geochemistry anomaly that strikes east-west for over 1 kilometre. The peak of the soil geochemistry anomaly is coincident with a window through the transported sand-dune sediments and it is possible that anomalism extends farther under sand cover. In drilling, mineralisation was intersected on one drill section which indicates a southerly
dipping mineralised zone within an east-west striking structure. Further work is required establish the extents and geometry of this mineralised zone.
The combination of the multi-element metal association, the high-grade metamorphic rocks and presence of magnetite is similar to distal signatures of Cloncurry-style iron oxide copper gold (IOCG) deposits (e.g Ernest Henry or Osborne copper-gold mines in Queensland). However, further work is required to form a coherent metallogenic model for this region and this interpretation may change.
The next steps at Bumblebee include an aeromagnetic survey to identify prospective structures and accumulations of magnetite (IOCG analogues); ground-based electromagnetic techniques for targeting accumulations of massive or disseminated sulphide minerals; along with further surface geochemistry and drilling.
Figure 2. Bumblebee drill program and geochemical anomaly map on aerial imagery
Figure 3. Du Faur project area showing prospect locations with interpreted geology
The drill program also tested 4 other geochemistry anomalies in this area. The Springer Prospect drilling returned 1m grading 2.8g/t gold. The Prowl Prospect drilling returned 1 metre grading 3.4g/t gold and 1 metre grading 2.4g/t gold.
The Warumpi Margin Project (part of the Lake Mackay Alliance)
The Arunta geological region is represented by Proterozoic metamorphosed sediments and intrusions consisting of geological provinces including the Aileron and Warumpi Provinces.
P P
In early 2015, ABM acquired a further ~4900km2of exploration license applications (Figure 4) in this area that cover over 140km of strike length of a pronounced geophysical gravity ridge along the margin of the Aileron and Warumpi provinces. These exploration license applications also form part of the Lake Mackay alliance agreement with IGO (refer release 21/08/2013). IGO has completed the required expenditure for Phase 1 (option phase) of the agreement and a decision to proceed to Phase 2 (the earn-in phase) is required by November 2015. However, given that access on the Du Faur Project area was only granted last year, and exploration on this tenement and the wider Warumpi Margin Project is still in the early stage, both ABM and IGO have negotiated in principle to extend the option term to allow time for granting of new exploration licence applications and further on-ground exploration work. This extension is pending completion of paperwork and a further announcement will be made on this shortly.
ABM and IGO have also entered into an earn-in and joint venture agreement with Metals X Ltd for the adjoining tenement application immediately north of EL24915. This tenement application (EL29748) is held by Castile Resources Pty Ltd - a wholly owned subsidiary of Metals X Ltd (ASX:MLX). ABM and IGO (after granting of the tenement) can collectively earn an initial 51% of the tenement (pro-rata 70% IGO and 30% ABM) by spending $500,000 with further rights to earn up to 76.925%. This tenement is an application and, as with all exploration license applications in this area, requires consent of the traditional owners via the Central Land Council prior to granting. The IGO / ABM alliance is tasked with advancing the tenement to granted status.
Figure 4. Gravity geophysical map (bouguer anomaly) and ABM's exploration licenses at the Warumpi Margin Project
About ABM Resources
ABM is 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 gold production such as the Old Pirate High-Grade Gold Project, large scale discoveries such as Buccaneer, and regional exploration discoveries such as the Hyperion Gold Project. In addition, ABM is committed to regional exploration programs throughout its extensive holdings including the alliance with Independence Group NL at the regional Lake Mackay Project.
Figure 5. ABM's land position in the Central Desert
Signed
Darren Holden - Managing Director
Competent Persons Statement
The information in this announcement relating to recent exploration drill results from the Lake Mackay Project is based on information compiled by Independence Group NL and reviewed / checked by Mr Darren Holden who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Holden 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 Holden consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.
Appendix 1:
Table A1. Significant Intercept calculations for Bumblebee Tenements
Hole No
Depth From (m)
Depth To (m)
Vertical depth (m)
Width (m)
Gold (g/t)
Silver (g/t)
Copper (%)
Lead (%)
Zinc (%)
Cobalt (%)
15LMAC030
29
31
25
2
1.3
34.6
7.4
1.3
1.6
0.09
15LMAC031
35
42
30
7
3.3
37.7
3.2
0.9
1.3
0.08
15LMAC032
56
61
48
5
2.4
12.4
1.4
0.2
1.0
0.10
All intercepts based on >1g/t gold.
Table A2. Drill hole details of 2015 drill program at Du Faur ordered from high to low on maximum gold assay in the hole.
Hole ID
Hole Type
Total Depth (m)
East (GDA94
Zone 52)
North (GDA94
Zone 52)
RL
(m)
Dip (degrees)
Azimuth
Max Assay Gold (g/t)
Prospect
15LMAC031
AC
52
588303
7450496
481
-60
0
6.144
Bumblebee
15LMAC032
AC
70
588304
7450472
481
-60
0
3.841
Bumblebee
15LMAC073
AC
31
559326
7445722
465
-60
315
3.433
Prowl
15LMAC033
AC
40
572704
7446795
475
-60
315
2.754
Springer
15LMAC071
AC
62
559301
7445750
468
-60
315
2.418
Prowl
15LMAC030
AC
46
588303
7450510
481
-60
0
1.398
Bumblebee
15LMAC034
AC
60
572720
7446782
475
-60
315
1.35
Springer
15LMAC036
AC
46
573012
7446968
476
-60
315
0.755
Springer
15LMAC035
AC
28
572727
7446817
474
-60
315
0.397
Springer
15LMAC077
AC
20
559363
7445687
467
-60
315
0.345
Prowl
15LMAC068
AC
31
572280
7446374
473
-60
135
0.273
Springer
15LMAC024
AC
55
588509
7450585
483
-60
0
0.224
Bumblebee
15LMAC069
AC
31
572269
7446381
481
-60
135
0.213
Springer
15LMAC029
AC
49
588299
7450533
481
-60
0
0.161
Bumblebee
15LMAC080
AC
19
559388
7445668
468
-60
315
0.134
Prowl
15LMAC084
AC
21
559428
7445622
469
-60
315
0.129
Prowl
15LMAC037
AC
49
572998
7446979
477
-60
315
0.113
Springer
15LMAC049
AC
36
572513
7446695
481
-60
130
0.085
Springer
15LMAC057
AC
37
572613
7446600
482
-60
130
0.078
Springer
15LMAC056
AC
32
572602
7446610
482
-60
130
0.073
Springer
15LMAC072
AC
40
559314
7445735
465
-60
315
0.072
Prowl
15LMAC048
AC
30
572517
7446687
474
-60
130
0.066
Springer
15LMAC081
AC
22
559403
7445653
468
-60
315
0.066
Prowl
15LMAC038
AC
49
573030
7446955
474
-60
315
0.065
Springer
15LMAC079
AC
19
559379
7445673
467
-60
315
0.065
Prowl
15LMAC083
AC
20
559418
7445629
469
-60
315
0.052
Prowl
15LMAC047
AC
31
572537
7446672
474
-60
130
0.05
Springer
15LMAC050
AC
31
572503
7446706
467
-60
130
0.044
Springer
15LMAC082
AC
28
559413
7445640
469
-60
315
0.039
Prowl
Hole ID
Hole Type
Total Depth (m)
East (GDA94
Zone 52)
North (GDA94
Zone 52)
RL
(m)
Dip (degrees)
Azimuth
Max Assay Gold (g/t)
Prospect
15LMAC055
AC
35
572591
7446619
481
-60
130
0.038
Springer
15LMAC060
AC
34
572331
7446617
484
-60
130
0.038
Springer
15LMAC074
AC
31
559338
7445711
465
-60
315
0.037
Prowl
15LMAC023
AC
58
588499
7450611
482
-60
0
0.036
Bumblebee
15LMAC067
AC
31
572294
7446366
476
-60
140
0.035
Springer
15LMAC089
AC
39
559279
7445772
465
-60
315
0.035
Prowl
15LMAC046
AC
34
572548
7446661
480
-60
130
0.033
Springer
15LMAC044
AC
40
572733
7446766
473
-60
315
0.032
Springer
15LMAC058
AC
31
572626
7446586
478
-60
130
0.032
Springer
15LMAC087
AC
19
559450
7445599
468
-60
315
0.027
Prowl
15LMAC028
AC
52
588300
7450556
481
-60
0
0.022
Bumblebee
15LMAC061
AC
30
572321
7446630
477
-60
130
0.022
Springer
15LMAC054
AC
34
572580
7446631
472
-60
130
0.021
Springer
15LMAC076
AC
20
559354
7445692
466
-60
315
0.021
Prowl
15LMAC026
AC
58
588305
7450606
481
-60
0
0.02
Bumblebee
15LMAC027
AC
58
588302
7450581
481
-60
0
0.019
Bumblebee
15LMAC065
AC
30
572279
7446670
478
-60
130
0.019
Springer
15LMAC045
AC
34
572557
7446650
471
-60
130
0.018
Springer
15LMAC011
AC
12
607200
7449669
496
-60
0
0.017
MR_F
15LMAC020
AC
23
606537
7441647
518
-60
0
0.016
MR_E
15LMAC053
AC
34
572569
7446639
472
-60
130
0.016
Springer
15LMAC003
AC
16
607001
7449674
498
-60
0
0.014
MR_F
15LMAC066
AC
31
572301
7446351
477
-60
135
0.013
Springer
15LMAC042
AC
46
572676
7446826
473
-60
315
0.012
Springer
15LMAC022
AC
31
588499
7450636
481
-60
0
0.011
Bumblebee
15LMAC007
AC
43
607004
7449512
497
-60
0
0.01
MR_F
15LMAC043
AC
44
572659
7446842
476
-60
315
0.01
Springer
15LMAC086
AC
18
559442
7445608
469
-60
315
0.01
Prowl
15LMAC008
AC
43
607002
7449468
498
-60
0
0.009
MR_F
15LMAC075
AC
31
559346
7445699
466
-60
315
0.009
Prowl
15LMAC078
AC
19
559370
7445679
467
-60
315
0.009
Prowl
15LMAC085
AC
19
559434
7445616
469
-60
315
0.009
Prowl
15LMAC088
AC
23
559469
7445583
468
-60
315
0.008
Prowl
15LMAC002
AC
4
607001
7449709
496
-60
0
0.007
MR_F
15LMAC014
AC
10
607203
7449547
496
-60
0
0.007
MR_F
15LMAC021
AC
32
606536
7441633
518
-60
0
0.007
MR_E
15LMAC039
AC
46
572984
7446996
477
-60
315
0.007
Springer
15LMAC051
AC
32
572493
7446715
471
-60
130
0.007
Springer
15LMAC070
AC
31
572261
7446393
482
-60
135
0.007
Springer
15LMAC006
AC
9
607010
7449546
497
-60
0
0.006
MR_F
15LMAC010
AC
6
607203
7449708
496
-60
0
0.006
MR_F
15LMAC040
AC
43
572966
7447011
474
-60
315
0.006
Springer
15LMAC041
AC
40
572690
7446812
474
-60
315
0.006
Springer
Hole ID
Hole Type
Total Depth (m)
East (GDA94
Zone 52)
North (GDA94
Zone 52)
RL
(m)
Dip (degrees)
Azimuth
Max Assay Gold (g/t)
Prospect
15LMAC025
AC
49
588511
7450560
482
-60
0
0.005
Bumblebee
15LMAC063
AC
31
572300
7446648
478
-60
130
0.005
Springer
15LMAC004
AC
17
606998
7449633
498
-60
0
0.004
MR_F
15LMAC005
AC
16
607000
7449590
498
-60
0
0.004
MR_F
15LMAC013
AC
7
607201
7449589
497
-60
0
0.004
MR_F
15LMAC062
AC
31
572310
7446640
477
-60
130
0.004
Springer
15LMAC064
AC
31
572290
7446658
478
-60
130
0.004
Springer
15LMAC012
AC
5
607197
7449622
497
-60
0
0.003
MR_F
15LMAC017
AC
5
606901
7441709
520
-60
0
0.003
MR_E
15LMAC052
AC
31
572482
7446725
480
-60
130
0.003
Springer
15LMAC001
AC
10
606999
7449750
497
-60
0
0.002
MR_F
15LMAC009
AC
7
607200
7449751
497
-60
0
0.002
MR_F
15LMAC015
AC
5
607203
7449512
497
-60
0
0.002
MR_F
15LMAC016
AC
13
607202
7449471
495
-60
0
0.002
MR_F
15LMAC018
AC
22
606903
7441692
520
-60
0
0.002
MR_E
15LMAC059
AC
34
572343
7446608
477
-60
130
0.002
Springer
15LMAC019
AC
28
606903
7441672
520
-60
0
0.001
MR_E
JORC Code, 2012 Edition - Table 1- Du Faur Project Area, Lake Mackay Drilling 2015
Section 1 Sampling Techniques and Data
Criteria
JORC Code explanation
Commentary
Sampling techniques
Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralisation that are Material to the Public Report.
In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
Aircore Drilling (AC) was undertaken in 2015 to test 5 soil geochemical anomalies. 89 holes were drilled to an average depth of 31.2 metres, for 2781 metres.
One metre AC samples were collected and composited to four metres to produce a 3kg sample.
Samples were dried, pulverised to -75um and split to produce a nominal 200 gram sub sample. A 10g charge was analysed using aqua-regia digestion with an MS finish for gold and pathfinder elements.
For anomalous samples individual metre samples were also collected.
An end of hole (EOH) sample was collected for lithogeochemistry. A 3kg sample was collected. The sample was dried, pulverised to -75um and split to produce a nominal 200 gram sub sample. This was analysed with Lithium Borate Fusion with an ICP-OES and ICP-MS finish.
Magnetic susceptibility was recorded for each composite sample.
Lithogeochemistry has also been conducted on selected samples to aid in understanding the style of mineralization present on the project. This was analysed with Lithium Borate Fusion with an ICP-OES and ICP-MS finish, a 4 acid digestion with an ICP-OES and ICP-MS finish, Fire Assay with an MS Finish.
Drilling techniques
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
A Drillboss 200 AC drilling rig, owned and operated by Bostech Drilling, was used to collect the AC samples. The face sampling AC bit has a diameter of 87mm (3.5 inches) and collects samples through an inner tube reducing the potential for sample contamination.
In fresh rock, an 87mm (3.5 inches) aircore hammer was used.
Drill sample recovery
Method of recording and assessing core and chip sample recoveries and results assessed.
Measures taken to maximise sample recovery and ensure representative nature of the samples.
Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
The sample recovery was estimated by the relative size of the piles of drill spoil that were placed on the ground.
Sample quality was recorded during logging (wetdry samples) and qualitative recovery codes (C=contaminated, G=good, M=moderate, O=oversize, P=poor, U=undersize) were assigned to the samples.
Logging
Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
The total length and percentage of the relevant intersections logged.
The AC chips were logged on 1 metre intervals using the IGO coding system. Lithology, weathering, colour, alteration, veining and mineralisation and oxidation state are logged. This drilling is for exploration purposes and is not intended for resource estimation. No geotechnical logging was conducted.
Sampling was Qualitative (geological logging) and Quantitative (magnetic susceptibility).
Each hole was logged and sampled in full. A representative chip sample of each metre drilled was collected for future reference.
Criteria
JORC Code explanation
Commentary
Sub-sampling techniques and sample preparation
If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.
Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second- half sampling.
Whether sample sizes are appropriate to the grain size of the material being sampled.
One-metre drill samples were laid out on to the ground in 10m rows and four-metre composite samples of approximately 3kg were collected using an aluminium scoop, into pre-numbered calico bags. The majority of samples (>90%) were dry.
Samples were prepared at the Intertek Laboratory in Alice Springs. Samples were dried and the whole sample pulverised to 85% passing 75µm, and a sub-sample of approx. 200g retained. 10g was used for analysis.
A duplicate field sample was taken at a rate of 1 in 50.
Field duplicate assay results are reviewed to confirm that the sample results are representative.
For exploration drilling the sample size is considered appropriate to give an indication of mineralisation given that the sample is crushed to -75µm.
Quality of assay data and laboratory tests
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
Aqua Regia with an MS finish was used, this has a detection limit of 1ppb Au.
All samples >500ppb Au were re-assayed using fire assay.
Any metals that exceeded the Aqua Regia threshold were re- assayed using a 4 acid digestion. These methods are considered appropriate for AC drilling.
No geophysical or XRF results are used in exploration results reported.
Laboratory QAQC involves the use of internal lab standards and blanks using certified reference materials. Lab duplicates are also monitored to ensure the sample results are representative.
Independence Group also provides reference samples and blanks that are inserted every 50 samples.
Verification of sampling and assaying
The verification of significant intersections by either independent or alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
Significant intersections were checked by IGO personnel and ABM personnel
No twinned holes were completed.
Primary data was collected in Field Marshall files. Data are imported directly to the database with importers that have built in validation rules. Assay data are imported directly from digital assay files and are merged in the database with sample information. Data are uploaded to a master SQL database stored in Perth, which is backed up daily. Data is reviewed and manually validated upon completion of drilling.
On occasions assay analysis will be repeated if they fail the company QAQC protocols, however, no adjustments are made to assay data once accepted into the database.
Location of data points
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
Hole collars were recorded using Garmin handheld GPS. Expected accuracy is + or - 5m for easting and northing. All holes were drilled to -60 dip and no down-hole surveys were undertaken. The azimuth of the drill collars were measured with a compass and recorded in the database.
The grid system is MGA_GDA94 (zone 52), local easting and northing are in MGA.
Handheld GPS is adequate for AC drilling.
Data spacing and distribution
Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied.
The data spacing was designed to cover the peak of the soil anomalies that were identified. Due to the low degree of weathering the hole depth was reduced and the drill spacing was tightened up due to slow penetration rates with the hammer.
This drilling is not used for resource estimation, it was intended to attempt to identify bedrock sources of multi-element soil geochemical anomalies associated with gold mineralised systems.
Criteria
JORC Code explanation
Commentary
Samples were composited over 4 metres. 1m splits were subsequently collected for analysis by a broader suite of elements with ore grade detection limits.
Orientation of data in relation to geological structure
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
The drill lines were designed to be perpendicular to the soil anomalies.
No sampling bias is considered to have been introduced.
Sample security
The measures taken to ensure sample security.
The drill samples were collected in pre-numbered calico bags and then placed in poly-weave bags. They were transported from the field to the sample preparation laboratory in Alice Springs by XM Logistics personnel who were contracted to Independence Group. Once the sample preparation is completed in Alice Springs the samples are transported to Perth for analysis using the laboratories standard chain of custody procedure.
Audits or reviews
The results of any audits or reviews of sampling techniques and data.
No specific audits or reviews have been undertaken at this stage in the programme.
Section 2 Reporting of Exploration Results
Criteria
JORC Code explanation
Mineral tenement and land tenure status
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
The Lake Mackay Project currently consists of the following granted tenements:
The tenements are in good standing and no known impediments exist.
ABM and Independence Group NL ('IGO') entered into a multi-phase agreement covering the Lake Mackay Project on 21 August 2013.
Phase1 - Option Phase (ABM retains 100% interest). IGO earns the right to proceed to Phase 2 by spending
Phase 2- IGO has the option to enter into a farm-in and joint venture agreement with ABM to earn a 70% interest in the project. This would involve making a $1M cash payment to ABM or subscribing for $1.5M ABM shares in placement with a 6 month escrow period and spending $6M on exploration on the project over 4 years.
$1.6 million on exploration expenditure within 2 years.
Exploration done by other parties
Acknowledgment and appraisal of exploration by other parties.
Historically, large parts of the Lake Mackay project area have been moderately explored since 1996 by Newmont Pty Ltd and then Tanami Gold NL. Hundreds of surface samples were collected and Vacuum-RAB-AC drill holes completed, mainly within the areas of residual soils close to known intercepts.
A number of prospects were identified from this work and more moderate levels of shallow RAB, and various geophysical surveys were completed. This exploration identified some sub- economic gold (Au) occurrences, although follow-up work was not completed at that time.
ABM followed up these anomalies and conceptual targets in 2011 with targeted and reconnaissance RC drilling, this verified the Tekapo Au and Cu anomalism.
Criteria
JORC Code explanation
EL24915 was previously explored by BHP in the South Tanami JV. BHP flew a Geotem survey in 1999 and did ground EM and drilling in 2004 targeting Ni sulphides.
Geology
Deposit type, geological setting and style of mineralisation.
The project area is considered highly prospective for orogenic shear hosted gold deposits based on similarities that exist between the West Arunta and the Granites- Tanami Block with respect to gold deposition timing and structural settings.
The region is also considered to have potential for a range of commodities and mineralising styles. These type of deposits include:
IOCG
Porphyry/intrusion related gold and base metals (including IRG)
Ultramafic intrusion related Ni-Cu-PGE
Drill hole Information
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
easting and northing of the drill hole collar
elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
dip and azimuth of the hole
down hole length and interception depth
hole length.
If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Included in Table A1 and A2
Data aggregation methods
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should be clearly stated.
Only intersections > 1g/t Au are displayed in Tables A1. Peak assay for each drill hole assay is shown in Table A2.
Relationship between mineralisation widths and intercept lengths
These relationships are particularly important in the reporting of Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').
Intercepts are downhole width.
Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
Refer figure 1 & 2 in main body of this report.
Balanced reporting
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
IGO Limited is engaged in discovering, developing, and delivering products critical to clean energy. Through its upstream mining and downstream processing assets, the Company enables technologies, including the electrification of transport, energy storage and renewable energy generation. Its segments include Nova Operation, Forrestania Operation, Cosmos Project, and Lithium Business. The Nova Operation comprises the Nova underground nickel mine and processing operation which produces nickel and copper concentrates. The Forrestania Operation comprises the Flying Fox and Spotted Quoll underground mines, and the Cosmic Boy processing facility. The Forrestania Operation comprises the Flying Fox and Spotted Quoll underground mines, and the Cosmic Boy processing facility. It also owns and operates an integrated lithium business which includes a 51% interest in the Greenbushes Lithium Mine and 100% interest in the Kwinana Refinery, both of which are located in Western Australia.
IGO LIMITED 
