4 December 2007 The Announcements Office Australian Stock Exchange Ltd Level 3, 20 Bridge Street SYDNEY NSW 2000 By ASX Online Transmission Dear Sir, Please find attached ASX/Media release regarding Erayinia Update. Yours faithfully Jutta Zimmermann Company Secretary 4 December 2007 ASX CODE: ABU ASX ANNOUNCEMENT / MEDIA RELEASE Erayinia Update – Significant High grade Zn Intersected at King HIGHLIGHTS: A very significant and high grade intercept of 5 metres grading 10.6% Zn in drill hole ECD116 has been received from the northern lens at the King prospect, Erayinia Project. Results from drill hole ED116 show that Zn grades have increased with depth at King prospect Drill hole ED120 is currently underway to test the southern strike extension of the high grade intersection in ECD116 in the northern lens. A new DHTEM survey at King and other drill targets will commence this week to identify new conductors Project Background The Erayinia Project (70:30 JV with Great Gold Mines NL) is located approximately 150 km east south east of Kalgoorlie within an Archaean greenstone belt at the southeast margin of the Yilgarn Craton. Exploration carried out 14 years ago identified copper-zinc mineralisation in a possible Volcanic Massive Sulphide (VMS) environment. Focused exploration initiated by ABM Resources from 2005 onwards has confirmed the presence of a VMS zone (King prospect). A total of 25 drill targets have been identified within a 40 km long greenstone belt at Erayinia based on geophysical and geochemical anomalism. ABM is now intensifying its exploration drilling programs to determine the size and economic potential of its King prospect and determine if a cluster of VMS deposits occur within the broader project area. King Prospect – Current Diamond drilling program The diamond drilling program currently underway at King Prospect to test a series of strong DHTEM conductors identified during the September quarter has returned a very significant and high grade intersection of 5m grading 10.6% Zn in drill hole ECD116. A total of 10 surface diamond and diamond tail holes have been completed for 3466 metres in the current program. Assay results have now been received from six diamond holes completed during October and November. These are tabled as follows: Hole ID North East Interval M Width m Zn % Pb % Cu ppm Ag Ppm ECD088 6538490 484800 415.5 – 417.5 2 1.05 0.04 203 4 ED112 6538590 484915 562.9 – 564.9 2 1.1 0.1 426 7 ED113 6538340 484880 Inc 519 – 526 519 – 520 7 1 0.72 17.4 0.1 152 61 6 2 ED114 6538640 484465 232 – 237 5 4.6 0.39 341 52 ED115 6538590 484465 248 – 253 5 1.5 0.16 1665 13 ED116 6538640 484795 425.5 – 431.5 5 10.6 0.56 242 35 Drill hole ED116 on section 6538640 N was designed to test the depth extension of the northern VMS lens and has achieved that objective with an intersection of 5m @ 10.6% Zn. Drill holeED114 with 5m @ 4.6 % Zn was drilled to infill on section 6538640 N and test the up-dip extension of mineralisation in previously drilled hole ECD056. The diamond drilling program is continuing to test the strike continuity of the high grade intersection in ED116 with the northern lens. Results from drill hole ED116 show that Zn grades have increased with depth at King prospect Drill hole ED113 has returned an intersection of 1m grading 17.4% Zn within a broader zone of 7m @ 0.72% Zn possibly indicating that the southern lens is forming a higher grade core. A mineral assemblage consisting of pyrite, pyrrhotite, magnetite and sphalerite has been intersected in all drill holes. Recent exploration has shown the mineralised zone to comprise two parts, on-line, with a barren section of about 150m in between. The zinc bearing sulphide mineralisation within both the northern and southern lenses has been extended down-plunge to a depth of 450 metres (see attached King Prospect Long Section). A new program of diamond drilling is expected to commence in February 2008 when a diamond drilling rig is available. King Prospect Long Section Other targets E2 to E25 RC and diamond drilling to date at King has provided a better understanding of the VMS system at Erayinia. As a result, an RC drilling program and new DHTEM survey will be completed to include a number of the other 24 “thumbprint� magnetic anomalies/targets within the 40 km long Erayinia Archean greenstone belt. A new DHTEM survey will commence this week to identify new conductors. These new targets have the potential to host further VMS deposits at Erayinia. A 4,000 metre RC drilling program is scheduled to commence in January 2008 to complete the following: • Follow up drilling to test the strike extension of the VMS base metal mineralisation outlined at the E2 prospect. • First pass testing of the large number of “thumbprint� magnetic anomalies. For any questions on the release please contact: Mr Imants Kins Executive Chairman +61 8 9423 9777 ABOUT ABM RESOURCES NL: The company has a portfolio of base metal (zinc, lead, copper) projects located in Western Australia and a Joint Venture gold project in Mozambique. The conceptual exploration framework of the company is focused on delineating major mineral discoveries. The primary exploration focus is the substantial region-scale Volcanic Massive Sulphide (VMS) base metal JV project at Erayinia located in Western Australia. ABM Resources also holds interests in a recently acquired JV gold project in Mozambique and another three base metal projects, Gascoyne, Earaheedy and Harbutt Range in Western Australia. ABM Resources entered into a formal Cooperative Agreement with AYR Infrastructure in May 2007 and earlier an MOU with its related company Ayr Resources Africa with the objective of securing high quality gold and other mineral projects in selected countries in Africa with a view to outlining significant mineral deposits. A due diligence process is also underway in Zambia regarding prospects for copper and associated minerals. Ayr Infrastructure Development (AID) is a global consulting and development organisation developing sustainable infrastructure in the emerging markets around the world. The information in this Report that relates to Exploration results is based on information compiled by Harjinder Kehal who is a member of the Australasian Institute of Mining and Metallurgy. Harjinder Kehal is a Consultant Geologist with over 20 years experience as a geologist. Harjinder Kehal has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves. Harjinder Kehal consents to the inclusion in the report of the matters based on his information in the form and context in which it is used.
Just a side thought a few companies last week in the zinc area annouced similar yields and size of results and rose 25-100% GNL annouced and went backwards, this stock is massive good value and u lot ignore it, anyone care to explain why lolol
GNL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
