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ABM Resources Sells Non-Core Asset For A$300,000

ABM Resources (ASX: ABU) has sold its 70% interest in the Erayinia base metals project in Western Australia to Black Raven for A$300,000 to focus on its gold projects in the Northern Territory.

The sale adds to the company's already sizeable cash holding of A$17.5 million as of 30 September 2012.

Erayinia, a regional scale volcanic massive sulphide project located close to Kalgoorlie, is considered a non-core asset.

ABM recently announced several extensions to veins outside of the existing resource at its Old Pirate project, which has a current resource of 427,400 ounces of gold at 7.95 grams per tonne (g/t) (top cut) or 565,000 ounces of gold at 10.5g/t gold (uncut).

A Scoping Study shows a robust low CAPEX project capable of generating significant near term free cash flow. A $257 million profit and very low CAPEX was indicated by the study over the first two years of operation.

It also made a new high grade gold discovery at the Golden Hind Prospect with recently reported drill results including 15 metres at 118g/t gold.

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