ABM Resources hits spectacular bonanza gold grades from new zone at Old Pirate Gold Prospect

ABM Resources (ASX: ABU) has received the remaining assays from phase one of the drilling at the Old Pirate Prospect on the Twin Bonanza Project area and the results were spectacular - with one intersect of 5 metres @ 274g/t Gold returned.

Hole OPRC100005 returned:

- 5 metres @ 274g/t (~8.8oz per tonne) Gold (1 g/t cut-off) from 61 metres including 1 metre @ 1360g/t (~43.7oz per tonne) Gold from 62 metres.

This has added to the high grade drill results announced on July 12th, 2010.

Twin Bonanza is located in the Tanami region of the Northern Territory of Australia approximately 22 kilometres south of the Tanami Road and 14 kilometres east of the Western Australia border.

Darren Holden, managing director, said “with such spectacular high grades and coarse visible gold we are very excited about the progress at Old Pirate. These results are from a new zone and we are only just beginning to understand this mineralised system as a whole."

"We look forward to returning the drill rig to this prospect very shortly for phase 2 of drilling, which will include both infill on the 400m zone outlined to date and extensional drilling along the trend of the zone / fold axis to the north and south.”

OPRC100005 intersected widespread quartz veins hosted in sandstone and siltstone layers. Visible gold was observed at 63 metres depth.

Following the notification from the laboratory that there was considerable gold in the assay results ABM’s geologists took a split of the remaining sample retained at site and observed gold grains up to ¼ of a centimetre in a pan concentrate.

Hole OPRC100005 is drilled approximately 160 metres north of Hole OPRC100001 reported on July 12th, 2010 with results of 35 metres grading 6.35g/t gold including 7 metres grading 21.78g/t gold.

OPRC100005 is drilled in an area that has not previously been tested with the closest previous hole being drilled on the same drill section but only drilled to a vertical depth of 40 metres. This new gold zone remains open in all directions.

In addition Hole OPRC100005 intersected several other deeper gold-mineralised quartz veins. The deeper intersections are expected to project to shallower depths to the north of any previous drilling, increasing the likelihood that the gold-mineralised veins extend beneath younger cover (Old Pirate North).

On July 12th, 2010 ABM Resources reported the results of Hole OPRC100001. Hole OPRC100004 also intersected several significant intervals of gold mineralisation.
 
Results from OPRC100002 and OPRC100003 consist of wide low grade intervals. However, both OPRC100002 and OPRC100003 were drilled in the immediate vicinity of previous positive results including 6 metres grading 26.69g/t gold and 11 metres grading 12.46g/t gold respectively.

The company said the fact that ABM’s assay results indicate lower grade may well be due to the coarse gold affect, and by no means sterilises this area from inclusion in a future potential resource or mining. Further checks and re-assaying are being conducted on some sections of the holes below.

Twin Bonanza consists of multiple targets and early stage discoveries including Old Pirate, Old Pirate South, TB Hornfels and the bulk tonnage Buccaneer Porphyry Zone.

The drill rig has now moved to the Buccaneer Zone where ABM Resources is completing an initial 10 holes before returning to the Old Pirate and Old Pirate South Prospects.

ABM is the largest exploration land holder in the the Tanami-Arunta regions. The Company has an aggressive exploration approach and aims to bring multiple discoveries to resource stage as soon as possible.