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ABM Resources looking for bulk tonnage gold at Buccaneer

ABM Resources (ASX: ABU) has more than doubled the vertical extent of gold mineralisation at its 100% owned Buccaneer Porphyry Prospect after receiving and compiling the gold results of the first five deep RC drill holes.

Mineralisation has been confirmed from near surface to depths of more than 350 metres, considerably extending the system at the prospect located on the company’s Twin Bonanza Project in the Northern Territory.

The results follow the spectacular high grades and coarse visible gold reported by ABM at the Old Pirate prospect on July 27.

Hole BCRC100010 received 271 metres grading 0.54g/t gold (0.1g/t Au cut off) including:

- 153 metres grading 0.85g/t gold (0.3g/t Au cut off) including;
- 80 metres grading 1.17g/t gold (0.7g/t cut-off) including;
- 47 metres grading 1.71g/t gold (1.0g/t cut-off).

Hole BCRC100008 received 297 metres grading 0.45g/t gold (0.1g/t Au cut off) including:

- 123 metres grading 1.04g/t gold (0.3g/t Au cut off) including;
- 48 metres grading 1.28g/t gold (0.7g/t cut-off) including;
- 15 metres grading 2.92g/t gold (1.0g/t cut-off).

Buccaneer is just one of seven targets which make up the Twin Bonanza Project. Twin Bonanza is located approximately 22 kilometres south of the Tanami Road and 14 kilometres east of the Western Australia–Northern Territory border.

Darren Holden, managing director, said, “these are very positive results from our first phase at Buccaneer. On this prospect we are targeting wide intercepts on the order of 0.5g/t to 1.5g/t gold to build a bulk tonnage resource analogous to global Tier One projects such as Kinross Gold’s (NYSE: ASG) highly profitable Fort Knox Gold Mine (~6Moz @ 0.5g/t Au) in Alaska."

Kinross is Canada’s third largest producer of gold, its Fort Knox mine is a very large multi-million ounce gold type bulk tonnage open-pit world class deposit.

First phase results from Buccaneer have more than doubled the previously drilled vertical extents of the system and our continued analysis of these results and previous explorer’s work has extended the system considerably.

Phase 1 at the  Buccaneer Porphyry Prospect has involved drilling of 9 deep holes (~300 to 400 metres) to test the extents and grade continuity of the central part of the Buccaneer Porphyry Prospect.

Results have been received for the first five holes where all holes intersected wide zones of mineralisation of typical bulk tonnage grades. Assays are pending on the remaining 4 holes and will be released once received and compiled.

The first five holes (BCRC100007 to 100011) confirm that Buccaneer is a large mineralised system, extending to 300 to 350 metres depth on all of the sections drilled to date.

ABM’s strategy of drilling substantially deeper than previous explorers has been validated by the discovery of wide (10 – 50 metre), higher grade intersections within a broad mineralised envelope below the depth of any previous drilling.

The company said controls on the distribution and size of the higher grade sections throughout the mineralised system are complex, and that understanding those controls is the key to unlocking value.

ABM plans to return to Buccaneer for a second phase of drilling in the coming months, following analysis and interpretation of the chemical, mineralogical and structural signature of the higher grade sections.

Holes BCRC100007 to BCRC100010 also revealed widespread copper grades on the order of 0.03% to 0.15% and silver grades from 0.5 to 6g/t. Hole BCRC100011 is pending multi-element assay.

The Buccaneer Porphyry Prospect is a companion project to the near-by Old Pirate High Grade Prospect where ABM recently reported results including 5 metres grading 274g/t gold and 35 metres grading 6.35g/t gold. ABM is the largest exploration land holder in the the Tanami-Arunta regions.