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ABM Resources Finds High Grade Gold Near Old Pirate

ABM Resources (ASX: ABU) has uncovered more high grade gold 200 metres east of the main Old Pirate High-Grade Gold Deposit in the Northern Territory in recent low-cost extensional surface exploration.

Multiple quartz veins exposed at surface over an area of 50 metres by 50 metres have been discovered within the Bermuda Zone, with visible gold sighted.

Rock chip assays resulted in 51 surface samples, including duplicates, grading greater than 1 gram per tonne (g/t) gold with a maximum assay of 34.9g/t gold.

The central area of Bermuda has an average quartz vein sample grade of 5.26g/t gold.

ABM intends to follow up the Bermuda Zone with further surface exploration work, followed by drilling.

Darren Holden, managing director, commented: "As ABM continues its push for staged development at the Old Pirate High Grade Gold Deposit, we are also conducting low-cost extensional surface exploration work.

"The company's team of geologists has instigated a detailed work program aimed at the discovery of new outcrops of quartz veins with high grade gold.

"This work highlights the potential to significantly extend many of the vein sets we already know exist, plus opens up others in the immediate vicinity of the project area which could add to the already substantial mineral resource at the high-grade Old Pirate Deposit."

Golden Hind West Prospects

ABM recently reviewed geochemistry data provided by previous explorers to the west of the Golden Hind Deposit searching for similar gold anomalies.

Reconnaissance work has shown that the area to the west of Golden Hind has very little outcrop, however a review of existing surface geochemistry results indicate multiple trends which are parallel to Golden Hind with high grade soil samples up to 640 parts per billion gold.

Previous exploration by ABM at the main Golden Hind Deposit has previously demonstrated the deposit's high grade nature with drill results including 15 metres at 118g/t gold.

The prospect currently hosts an Indicated Resource of 113,000 tonnes at 16.45g/t gold for 59,100 ounces of contained gold.

The Golden Hind West prospect areas will be followed up with further surface exploration work including cross-trenching prior to drilling.

Casa Prospect

The Casa Prospect, which is located 8 kilometres southeast of Old Pirate, hosts gold anomalies identified via ionic leach gold geochemistry.

Ionic leach, developed by ALS Global Laboratories in Perth, is designed to see through surface transported cover (alluvial/wind-blown sands and gravel) where other traditional soil sampling techniques are not appropriate.

There are extensive large outcropping quartz veins at Casa which appear to be generally barren of gold, however the area has returned visible gold samples.

The area immediately to the south-west, and along strike, of the outcropping veins consists of transported surface gravels.

ABM covered this area with ionic leach geochemistry surveys which revealed extensive gold anomalies over an area of around 3 kilometres by 3 kilometres.

The company intends to follow up the Casa Prospect with shallow gridded drilling.

Old Pirate trial mining

Offsite modular pilot plant construction for the Old Pirate staged development continues on schedule and budget.

ABM is planning to conduct trial mining at the project in June and July. This trial mining is stage one of a multi-stage approach to development at Old Pirate.

Mining is scheduled to begin in June followed by processing in July.

Long lead time items for fine gold recovery (Knelson Concentrator) have been ordered from Consep Pty Ltd and engineering of support structures is progressing.

AMTAS Pty Ltd in Perth has begun work on components for coarse gold recovery (scrubber and jig).

The crushing circuit and ball mill have been secured via Index Pty Ltd in Brisbane and are being refurbished.

ABM is well capitalised to achieve its milestones in 2013 with $14.1 million in cash at the end of the December quarter 2012.

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