ABM Resources enters MoU regarding processing of high grade gold at Coyote mine

ABM Resources (ASX: ABU) has recently delivered to the market some very high grade near surface gold discoveries from the Old Pirate prospect, with the company now looking at an option of processing ore at nearby mine.

The agreement allows ABM Resources to assess the economic potential of processing the ore at the Coyote Gold Mine which is within easy trucking distance being located just 45 kilometres from Old Pirate, and is owned by Tanami Gold.

Old Pirate contains a series of high grade gold-bearing quartz veins which outcrop at surface and have been intersected by drilling to about 200 metres depth.

A recent surface bulk longitudinal trenching program resulted in exposing gold bearing veins between 0.3 metres and 6 metres wide, and resulted in 582 metres combined strike length averaging 23.98g/t gold.

Adding some spice to the already positive results from Old Pirate, is that there are more assays pending release in the short term.

Darren Holden, managing director of ABM Resources, commented on the agreement:

"The Old Pirate Gold Prospect is possibly one of Australia's few remaining systems with high grade visible gold in veins at surface and no historic workings.

"The location of Old Pirate, only 45 kilometres from the Coyote Gold Mine, logically suggests the possibility for mining high grade material without the need for the construction of a separate processing facility.

The MoU signed with Tanami Gold heralds the start of a collaborative investigation which may lead to fast-tracking ABM into a producing gold company."

Importantly, the agreement is non-exclusive with ABM Resources retaining the full optionality of potentially advancing Old Pirate as a stand-alone mining operation or as part of a future development plan.

Old Pirate is hosted within the Twin Bonanza Gold, which also contains the 1.67 million gold ounce Buccaneer Porphyry Gold Deposit, along with other discoveries.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24375/abm-resources-enters-mou-regarding-processing-of-high-grade-gold-at-coyote-mine-24375.html