(MENAFN - ProactiveInvestors - Australia) ABM Resources (ASX: ABU) has impressed with the first ever drill results for the Old Glory Prospect, which is located just 500 metres south of the high grade Old Pirate Deposit.
The discovery provides the potential for a third open pit alongside the Old Pirate and Golden Hind discoveries.
The first two reconnaissance drill holes on the prospect both intersected mineralised zones, including:
- OPRC1000176 intersecting 3 metres averaging 8.33g/t gold from 8 metre down hole; and
- OPRC1000175 intersecting 5 metres averaging 7.36g/t gold from 10 metre down hole.
More than 200 metres strike-length of surface mineralised vein remains to be tested with drilling.
ABM also completed additional further systematic sampling at Old Glory which delivered 285 metres of strike length vein sampled averaging 4.24g/t gold.
Darren Holden, managing director, said: "These latest results confirm yet another surface gold discovery in the environs of Old Pirate.
"The Old Glory veins were previously thought to be unprospective. However, the latest sampling results show more extensive mineralised veins and the first two drill holes intersected significant mineralisation.
"With the discovery from surface, Old Glory demonstrates the potential for a third open pit alongside the Old Pirate and Golden Hind discoveries."
ABM Resources is well capitalised to achieve its exploration milestones in 2012 and into 2013 with 17.5 million in cash at the end of September 2012.
ABM holds an extensive regional portfolio of exploration licences and licence applications covering over 33,000 square kilometres, with 3.3 million ounces of gold in resource across multiple discoveries by the company within the first two years of exploration.
The Old Glory Prospect is a quartz-vein outcrop approximately 500 metres south of Old Pirate and 250 metres north of Golden Hind, with the area consisting of multiple outcrops of quartz veins between 0.2 and 5 metres wide.
ABM Resources recently conducted surface sampling and an initial two-hole reconnaissance drill program at Old Glory, with the sampling showing that the mineralised quartz veins are more extensive than previously thought.
Both drill holes completed at Old Glory focused on the southern end of the prospect where previous surface sampling revealed grades up to 136g/t gold, with both holes intersecting mineralisation.
The central part of Old Glory with surface sampling results up to 61.70g/t gold and the northern part with multiple veins with surface results up to 76.40g/t gold - which remains to be drill tested.
2012 Vein Discoveries, Resource Development and Next Steps
ABM Resources has explored Old Pirate since 2010, and it was the innovation of using systematic surface sampling in mid 2011 that allowed the company to better understand the coarse gold and the associated statistical nugget effect.
Then in April 2012 a maiden inferred and indicated resource was announced at Old Pirate which included 565,000 gold ounces at 10.5g/t gold (uncut).
Recent metallurgical test-work indicates that gold liberates readily from the quartz veins using simple crushing and gravity separation methods. Further to existing resource estimation, ABM has conducted extensional exploration drilling, extensional surface sampling and has also drill-confirmed a new discovery at the Golden Hind Prospect located 800 metres south of Old Pirate.
Old Pirate sits on the same exploration license as the large-scale / bulk-tonnage Buccaneer Porphyry Gold Deposit.
Upon assessment of the overall scale and completion of requisite studies over the Old Pirate project area, which includes base-line environmental surveys, the Company will be in a position to apply for a mining lease.
Environmental work has been conducted in tandem with on-ground exploration. The company has also recently applied for a permit to conduct a 10,000 tonne bulk sample / trial mining exercise at Old Pirate. The purpose of the trial mining will be to reconcile mineable widths, grade and metallurgical recoveries.