ABM Resources NL heads east, new gold discovery at Buccaneer

ABM Resources (ASX: ABU) has drilled 250 metres east of the Buccaneer Porphyry Deposit and has discovered the Empress Zone discovery which is a newly recognised zone of oxide gold mineralisation hosted in quartz veins, open in all directions.

The sedimentary hosted oxide gold discovery is from step out drilling at its Twin Bonanza Gold Camp in the Northern Territory, which the company has named the Empress Zone.

Twin Bonanza is developing into a camp of discoveries. The new zone at Empress will extend the existing 1.67 million ounce (Moz) gold resource at Buccaneer, which is located only a few hundred metres away.

ABM's rate of success at drilling new targets is very high, the overall Twin Bonanza camp has more than 30 targets.

Highlights from near surface drill results from the first hole at the zone include:

- 43 metres averaging 1.02g/t gold (0.5g/t cut-off) including;
- 26 metres averaging 1.43g/t gold (1.1g/t cut-off) including; and
- 10 metres averaging 2.64g/t gold (2.0g/t cut-off).

Darren Holden, managing director of ABM Resources, said “once again, as we continue to step out from Buccaneer we intersect new zones of mineralisation. First we headed west of Buccaneer and hit the Caribbean Zone and then we headed east and discovered the Empress Zone."

To date there are no other substantive drill holes testing the sediments in the area of the Empress Zone making this a new discovery open in all directions.

The company plans further holes to follow up on the Empress Zone as the orientation of the mineralisation cannot be established with a single hole.

Further work is pending on this area and mineralisation remains open to the north, south and east of the existing intercept.

A total of 22 deep reverse circulation (RC) holes and 3 deep diamond core holes have been completed at Twin Bonanza so far this season.

The project spans the highly prospective “Trans Tanami Structure” an inferred regional / tectonic geological feature which hosts numerous gold deposits including mining giant Newmont’s (NYSE: NEM) multi-million ounce Callie Gold Mine.

This work includes extensional drilling of the Inferred 1.67million ounce gold resource at the Buccaneer Gold Deposit, Old Pirate southern extensions, Caribbean Zone and the Empress Zone.

ABM has completed holes at Buccaneer following up on the newly recognised Caribbean Zone and assays are pending.

The assays are pending finalisation and results are expected shortly for holes testing extensions of mineralisation at the main Buccaneer area and the eastern contact zone.

The company is additionally commencing the bulk trenching of the Old Pirate High Grade Gold veins in the coming days following the receipt of requisite approvals.

This work is aimed to better establish the overall grade of the surface vein material for resource estimation work. These results will be reported as soon as they become available.

ABM is currently drilling at the Landlubber target located 200 metres west of Old Pirate High Grade Gold Prospect where a total of 6 holes have been designed to intersect coincident geophysical and geochemical anomalies over an area of 600 metres by 400 metres.

In addition, drilling at the Kroda Gold Project located near the town of Barrow Creek on the Stuart Highway north of Alice Springs is progressing with a total of 4 holes of a 12 hole program complete and pending assay.
Following completion of the Kroda program the regional exploration team will mobilise to the Lake Mackay Iron Oxide Copper Gold targets for deep drill testing of several target areas.

Today's drilling results will assist ABM Resources in linking together resources at the Buccaneer deposit into a coherent model.

ABM aims to upgrade some of the Resource at Twin Bonanza to an “Indicated Resource” category in coming months.

Comment

On gold resource of 1.67 million ounces versus a current market valuation of sub-$100 million, ABM Resources is highly undervalued.  With its rate of drilling success and discoveries, likely to act as a catalyst for re-rating of the company, this is a company worth getting behind.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17598/abm-resources-nl-heads-east-new-gold-discovery-at-buccaneer-17598.html