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PRODIGY GOLD NL Capital/Financing Update 2012

Jun 14, 2012

65615_rns_2012-06-14_175f70ac-a9c2-420a-b459-41080bc93a88.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT / MEDIA RELEASE ASX:ABU

15 June, 2012

Longitudinal Surface Sampling Uncovers New High Grade Vein at Old Pirate with

185m strike length averaging 30.96g/t gold

ABM Resources NL ("ABM" or "The Company") is pleased to announce the first results of the 2012 field season from the longitudinal surface vein sampling program at Old Pirate Gold Deposit in the Northern Territory, Australia.

Highlights of new extensional sampling along the strike length of veins at Old Pirate:

  • New "East Side" high grade vein discovered at surface; outside current resource.
  • New "East Side" vein will likely be encompassed in a widened pit design also enabling more of the existing Old Pirate resource to be included in the pit.
  • Systematic surface sampling results of the East Side vein received to date:
    • 185 metres strike length averaging 30.96g/t gold including higher grade section of:
      • 32 metres strike length averaging 101.0g/t gold.
    • Peak assay value of 1150g/t gold (0.115% gold) and 26 other samples >100g/t gold.
    • Abundant coarse visible gold sighted at surface.
    • Reported vein section ranges from 0.15 metres to 1.8 metres width with an average width of 0.42 metres.
  • East Side vein extends over a further 340m+ cumulative strike length pending assay:
    • To the south, vein widens up to 3 metres width with ~90 metres of strike length and projected to link with the high grade Old Pirate South vein.
    • To the north, vein splits into multiple veins with approximately 250 metres of cumulative strike length projected.
  • A further 2000 samples+ of exposed vein and 40 RC holes for 6500m of drilling have been completed across the wider Old Pirate area and are pending assay.

Darren Holden, Managing Director, said, "Once again, Old Pirate delivers exceptional results and new extensions. These results are just the start of our 2012 program and the new East Side vein discovered at Old Pirate has not yet been tested with drilling and does not yet form part of our 565,000 ounce uncut resource estimation."

Figure 1. The New East Side Vein - surface sampling results with samples >10g/t labelled. Refer to Figure 3 for map in relation to existing resource area.

The New "East Side" Vein

Following on from the success of the 2011 surface sampling program, ABM has continued the approach of exposing surface veins and systematic channel / trench sampling. So far in 2012 the Company has collected over 2000 samples of new vein material. A detailed description of the process is noted below.

The first phase of samples from Old Pirate's 2012 program included the discovery of a vein located approximately 50 metres to the east of the main Old Pirate resource area (Figure 1, Figure 3) named the "East Side" vein. Assay results have been received from a central section of approximately 185 metres and are presented here in Table 1.

Table 1. Statistics from 2012 Phase 1 sampling on the new eastside vein
Total number of samples (including duplicates) 342 samples
Cumulative strike length projected / sampled 185 metres
Total weight of samples 1792kg
Total surface area of quartz sampled 72.9 sq m
Average vein width 0.42m
Maximum individual value 1150g/t gold
Number of samples >100g/t 27 (8%) averaging 289g/t gold
Number of samples >10g/t gold 104 (30%) averaging 98.43g/t gold
Average of all assays (including duplicates) 30.96g/t gold

Figure 2. Visible gold in hand-specimen from new East Side vein. Top Left – hand specimen (Au grains ~3mm). Top right, bottom left, bottom right photos through x30 microscope (Au grains 0.2 to 3mm).

The East Side vein is located close to the eastern margin of the open pit design presented in the scoping study (announced 15/05/2012). With the assumption that this vein continues at depth, the pit design would likely be modified to include this vein. This may also alter the optimisation parameters bringing more of the Old Pirate overall existing resource into the pit design as well as potentially adding material from this vein. The East Side vein is extensional to the existing resource.

The East Side vein extends to the south towards the Old Pirate South Eastern Limb where longitudinal sampling results presented in 2011 showed 69 metres strike length averaging 49.9g/t gold (announced 05/01/2012). In the section between today's reported vein and the Old Pirate South Eastern Limb, the East Side vein widens to over 3 metres in places and has approximately 90 metres of strike length pending assay.

To the north of today's reported vein section the East Side vein splits into multiple veins with a cumulative strike length projected over 250 metres. Sampling and assaying is on-going on this northern section.

Infill Surface Sampling on the Western Limb of the Old Pirate Resource

The first phase of the 2012 program also included the sampling of a vein on the western limb of the main Old Pirate resource. This is an area of exposed vein that was overlooked in last year's surface programs. The current resource model does not extend to surface in this area and this newly sampled vein section is also considered potentially extensional to the existing resource. This vein links to the north with a vein reported in 2011 with a strike length of 102 metres averaging 32.62g/t gold (08/02/2012). The width of the new vein is up to 6 metres. Table 2 contains details of this sampling.

Table 2. Statistics from 2012 Phase infill sampling on the western limb
Total Number of Samples (including duplicates) 218
Cumulative strike length projected / sampled 52
Total weight of samples 1453kg
Total area of quartz sampled 103 sq m
Average vein width 2.0m
Maximum value 121g/t gold
Number of samples >100g/t 1 (0.4%) grading 121g/t gold
Number of samples >10g/t 24 (11%) averaging 29.8g/t gold
Arithmetic mean of assays (including duplicates) 4.28g/t gold

Combined with the 2011 results the overall surface of exposed and sampled veins now totals approximately 963 metres with a cumulative strike length averaging 24.27g/t gold and an average width of approximately 1 metre.

Figure 3. Old Pirate 2012 Phase 1 surface sampling map in relation to existing resource area with new samples >30g/t gold labelled.

Extensional Discoveries, Implications for Resource Development and Next Steps

ABM has been exploring Old Pirate since 2010. However, it was the innovation of using systematic surface sampling in mid-2011 that allowed the Company to better understand the coarse gold and statistical nugget effect. In April 2012 the Company announced a maiden inferred and indicated resource totalling 565,000 ounces of gold averaging 10.65g/t gold uncut at Old Pirate (refer Appendix 2).

In May 2012 the Company announced an initial independent scoping study based on a preliminary open pit mine design and the installation of a small scale gravity gold recovery plant. This scoping study showed the potential for low capital expenditure of $27M and strong cash flows of over $250M after costs over two years. With the surface and drilling work underway ABM is assessing the overall scale of the Old Pirate system in order to update the resource estimation work and the scoping study accordingly.

Furthermore, Old Pirate sits in the same exploration license as the large scale / bulk tonnage Buccaneer Porphyry Gold Deposit. The Company is also currently assessing whether there are processing and development synergies between the two deposits.

In parallel with the 2012 exploration season the Company is gathering the requisite information to apply for a mineral lease (mining license) over the Old Pirate area. This includes base line flora / fauna surveys. Upon assessment of the overall scale and completion of requisite studies the Company will be in a position to apply for a mineral lease.

Surface Vein Sampling Rationale and Sampling Method

Gold at Old Pirate can be coarse (up to 2 to 3mm grains) and is hosted within quartz veins. However, the distribution of the gold within these veins is not uniform, and hence drilling will likely under-call the overall grade due to the fact that there is a less than 1 in 3 chance of intersecting high grade in any particular part of the vein. Upon advice from external consultants, rigorous and systematic sampling of the quartz along the strike length of veins at Old Pirate was proposed. Over 700m of sampling was conducted in 2011 and combined with drilling to estimate the gold resources at Old Pirate (16/04/2012). ABM has recommenced the program in 2012 of which the on-going work is presented here. This information, along with statistical parameters and extents of mineralisation, will be used to aid with further drilling and resource work.

The process for the surface sampling program is:

    1. Natural outcropping veins are mapped for location and width and sampled at 1 metre strike length intervals.
    1. A small digger then exposes those parts of the veins that are hidden underneath shallow soil cover to provide a combined map of natural outcrop and exposed quartz vein.
    1. For each metre of exposed quartz vein (both in natural outcrop and cleared veins) two representative samples of approximately 4 to 10kg are collected. Quartz is selected systematically in a grid pattern so as not to bias individual samples. Both samples are sent to the laboratory.
    1. The sample width depends on the width of the vein or exposed areas. In cases where the vein width is generally greater than 1 metre, multiple samples may be collected across the vein.
    1. The maximum depth of the digging is 60cm (due to permit regulations, safety considerations and to minimise environmental impact). If the soil cover is greater than 60cm then sampling does not take place despite the likelihood of the vein continuing beneath 60cm.
    1. Samples are processed by ALS Global in Alice Springs (NT), and ALS Global in Perth (WA) where they are weighed and analysed using regular fire assay (AA26D). Samples greater than 100g/t are re-assayed using AA26D / Over Limit Dilution method.
    1. Overall statistics and spatial distribution for vein strike length and grade are calculated by measuring sampled portions of vein (including a projection of short lengths (<10 metres) where the vein is inferred to have extended under cover) and then averaging all of the samples along the length. Individual entire veins that are un-mineralised (<1g/t) are excluded from overall statistics.
    1. Samples are surveyed with a hand-held GPS using waypoint averaging for ~20cm spatial accuracy.
    1. Surface samples are weighted for sample width prior to being used in any resource estimation work.

Figure 4. Gridded and sampled vein (pink lines represent grid boundaries of vein samples).

About ABM Resources

ABM Resources is an exploration company developing several gold discoveries in the Tanami-Arunta region of the Northern Territory of Australia. The Company has a multi-tiered approach to exploration and development with a combination of high grade potentially short-term production scenarios such as Old Pirate, large scale discoveries such as Buccaneer, and regional exploration discoveries such as the Kroda Gold Project. In addition, ABM Resources is committed to regional exploration programs throughout its extensive holdings.

ABM Resources is well capitalised to achieve its milestones in 2012 and into 2013 with over $26M in cash (as of quarterly report dated 31st March 2012).

Figure 5. ABM Project Location Map Northern Territory.

Signed

Darren Holden – Managing Director

Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Darren Holden who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Holden is a full time employee of ABM Resources NL and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves". Mr Holden consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.

For Further Information Please Contact

Jutta Zimmermann Darren Holden Berdine Mastaglia +61 8 9423 9777 +61 8 9423 9777 +61 8 9423 9777

CFO / Company Secretary Managing Director Investor Relations Manager

APPENDIX 1. Details of 2012 Phase 1 Surface Sampling Results from Old Pirate.

Notes - Sample width does not always equal vein width (veins wider than 1 to 1.5m are generally sampled with multiple samples across the width).

Whilst individual sample grades may vary due to statistical nugget effect between the original and duplicate, overall they are statistical comparable (30.34g/t average in the original vs 31.49g/t average in duplicate in Table 1.1; and 4.04g/t average in the original vs 4.52g/t average in duplicate in Table 1.2).

Sample ID(T=original &U=duplicate) Combinedweight(kg) Easting(mE) Northing(mN) SampleLength(m) Samplewidth(m) OriginalSampleGrade(Au g/t) DuplicateSampleGrade(Au g/t) Averagegrade(Au g/t)
T/U01577 9.73 516722.4 7767915.1 1.00 0.2 78.20 1150.00 614.10
T/U01572 11.06 516722.1 7767920.1 1.00 0.1 520.00 354.00 437.00
T/U01575 9.48 516722.1 7767917.3 1.00 0.2 587.00 274.00 430.50
T/U01578 10.01 516722.5 7767914.0 1.00 0.2 287.00 281.00 284.00
T/U01573 5.27 516722.0 7767919.0 1.00 0.1 134.00 409.00 271.50
T/U01497 11.72 516720.5 7767981.8 1.00 0.6 382.00 154.00 268.00
T/U01576 11.60 516722.3 7767916.0 1.00 0.2 102.00 376.00 239.00
T/U01496 11.04 516720.3 7767982.9 1.00 0.2 203.00 244.00 223.50
T/U01596 9.73 516724.9 7767895.9 1.00 0.1 409.00 11.60 210.30
T/U01502 13.47 516721.4 7767976.6 1.00 0.4 242.00 153.00 197.50
T/U01592 8.40 516724.4 7767900.0 1.00 0.3 289.00 78.40 183.70
T/U01498 12.07 516720.7 7767980.8 1.00 0.4 220.00 146.00 183.00
T/U01495 11.01 516720.0 7767984.0 1.00 0.3 122.00 185.00 153.50
T/U01571 10.94 516722.4 7767921.1 1.00 0.2 270.00 10.75 140.38
T/U01464 9.81 516713.1 7767776.0 1.00 1.2 107.00 100.00 103.50
T/U01570 9.77 516722.6 7767922.1 1.00 0.2 65.90 95.80 80.85
T/U01613 12.85 516726.0 7767876.1 1.00 0.2 102.00 27.30 64.65
T/U01590 11.81 516724.0 7767902.0 1.00 0.1 81.50 46.20 63.85
T/U01490 11.41 516715.2 7767993.1 1.00 1.5 26.20 99.30 62.75
T/U01537 6.44 516722.6 7767953.7 1.00 0.1 17.05 87.30 52.18
T/U01500 9.54 516720.9 7767978.9 1.00 0.4 70.30 32.60 51.45
T/U01466 12.24 516713.2 7767777.0 1.00 1.3 1.91 87.10 44.51
T/U01616 11.33 516726.3 7767872.0 1.00 0.1 2.78 84.40 43.59
T/U01591 10.70 516724.2 7767901.0 1.00 0.1 18.50 66.10 42.30
T/U01617 12.08 516726.3 7767870.5 1.00 0.1 57.50 21.00 39.25
T/U01562 12.40 516722.8 7767930.6 1.00 0.2 47.00 25.10 36.05
T/U01595 12.02 516724.9 7767896.9 1.00 0.2 57.30 12.55 34.93
T/U01494 9.82 516720.3 7767985.1 1.00 0.2 14.80 50.60 32.70
T/U01579 11.50 516722.7 7767912.9 1.00 0.2 33.70 24.90 29.30
T/U01499 11.52 516720.8 7767979.8 1.00 0.5 9.51 47.70 28.61
T/U01528 8.98 516721.3 7767964.5 1.00 0.1 6.24 44.50 25.37
T/U01565 12.15 516722.2 7767927.4 1.00 0.2 24.50 24.30 24.40
T/U01619 9.38 516726.3 7767867.4 1.00 0.3 16.45 32.00 24.23
T/U01568 12.32 516722.6 7767924.2 1.00 1.0 12.75 34.50 23.63
T/U01536 8.09 516722.4 7767954.8 1.00 0.1 16.70 29.30 23.00

Table 1.1 Assay results from 2012 Phase 1 from the new East Side vein sorted by grade

Sample ID(T=original &U=duplicate) Combinedweight(kg) Easting(mE) Northing(mN) SampleLength(m) Samplewidth(m) OriginalSampleGrade(Au g/t) DuplicateSampleGrade(Au g/t) Averagegrade(Au g/t)
T/U01589 12.96 516723.8 7767903.1 1.00 0.2 1.92 43.60 22.76
T/U01532 10.64 516721.4 7767959.3 1.00 0.1 40.60 3.84 22.22
T/U01560 10.28 516724.6 7767931.6 1.00 0.0 37.60 6.09 21.85
T/U01468 11.09 516713.2 7767778.0 1.00 1.2 37.70 1.88 19.79
T/U01566 11.63 516722.3 7767926.4 1.00 0.5 0.64 36.60 18.62
T/U01628 5.17 516727.2 7767858.5 1.00 0.1 33.60 1.69 17.65
T/U01538 7.70 516722.7 7767952.9 1.00 0.1 9.24 23.20 16.22
T/U01531 9.12 516721.2 7767960.3 1.00 0.1 9.87 20.00 14.94
T/U01594 13.83 516724.8 7767897.9 1.00 0.3 28.20 1.28 14.74
T/U01550 13.76 516720.6 7767939.9 1.00 0.1 15.15 13.70 14.43
T/U01597 14.33 516725.0 7767895.1 1.00 0.1 13.35 14.60 13.98
T/U01567 11.70 516722.5 7767925.3 1.00 0.8 5.76 21.90 13.83
T/U01553 10.41 516721.2 7767937.5 1.00 0.1 0.13 26.80 13.47
T/U01463 12.62 516714.2 7767776.0 1.00 1.0 12.40 13.35 12.88
T/U01615 12.55 516726.2 7767873.5 1.00 0.2 24.60 0.83 12.72
T/U01581 9.06 516722.9 7767910.7 1.00 0.1 12.00 12.60 12.30
T/U01507 11.22 516722.6 7767970.9 1.00 0.4 2.48 17.20 9.84
T/U01601 14.60 516725.4 7767891.2 1.00 0.1 19.50 0.02 9.76
T/U01533 7.59 516721.7 7767958.2 1.00 0.1 0.76 18.55 9.66
T/U01493 10.98 516720.5 7767987.7 1.00 1.7 15.75 3.53 9.64
T/U01569 9.59 516722.6 7767923.2 1.00 0.3 6.07 12.30 9.19
T/U01548 14.04 516720.7 7767942.1 1.00 0.1 8.38 9.72 9.05
T/U01521 10.48 516723.8 7767990.6 1.00 0.2 12.30 5.07 8.69
T/U01501 10.24 516721.1 7767977.8 1.00 0.3 16.55 0.55 8.55
T/U01574 6.48 516722.0 7767918.2 1.00 0.1 3.33 11.85 7.59
T/U01506 8.83 516722.4 7767972.0 1.00 0.5 12.50 2.29 7.40
T/U01625 9.87 516727.0 7767861.5 1.00 0.3 11.10 3.34 7.22
T/U01523 11.09 516725.0 7767988.7 1.00 0.1 0.63 12.85 6.74
T/U01624 11.35 516726.8 7767862.5 1.00 0.3 5.66 7.52 6.59
T/U01508 10.94 516722.8 7767969.6 1.00 0.3 2.84 10.25 6.55
T/U01602 13.92 516725.5 7767889.9 1.00 0.4 12.20 0.42 6.31
T/U01621 10.40 516726.5 7767865.3 1.00 0.2 10.60 2.01 6.31
T/U01593 5.94 516724.7 7767899.0 1.00 0.2 11.65 0.84 6.25
T/U01603 13.30 516725.6 7767888.7 1.00 0.3 12.25 0.01 6.13
T/U01580 9.45 516722.8 7767911.8 1.00 0.1 4.57 6.50 5.54
T/U01598 5.55 516725.1 7767894.2 1.00 0.1 10.25 0.11 5.18
T/U01539 9.57 516722.5 7767951.6 1.00 0.1 0.55 9.69 5.12
T/U01470 10.95 516713.1 7767779.0 1.00 1.2 6.21 3.89 5.05
T/U01582 5.81 516722.9 7767909.8 1.00 0.1 0.39 9.28 4.84
T/U01585 11.40 516723.3 7767906.8 1.00 0.2 6.43 2.46 4.45
T/U01622 8.91 516726.5 7767864.3 1.00 0.3 3.42 4.79 4.11
T/U01558 11.18 516723.2 7767932.8 1.00 0.1 0.74 6.91 3.83
T/U01623 12.92 516726.7 7767863.4 1.00 0.3 3.01 4.52 3.77
T/U01632 10.46 516727.1 7767854.3 1.00 0.4 13.04 3.68 8.36
Sample ID(T=original &U=duplicate) Combinedweight(kg) Easting(mE) Northing(mN) SampleLength(m) Samplewidth(m) OriginalSampleGrade(Au g/t) DuplicateSampleGrade(Au g/t) Averagegrade(Au g/t)
T/U01483 12.44 516709.8 7768009.5 1.00 1.5 6.42 0.03 3.23
T/U01614 13.39 516726.2 7767874.8 1.00 0.2 1.62 3.75 2.69
T/U01564 10.40 516722.1 7767928.4 1.00 0.1 1.86 3.31 2.59
T/U01618 9.59 516726.2 7767868.9 1.00 0.1 0.94 4.13 2.54
T/U01549 11.46 516720.6 7767941.1 1.00 0.1 3.93 0.84 2.39
T/U01631 10.70 516727.1 7767855.4 1.00 0.3 9.04 2.32 5.68
T/U01557 12.74 516723.1 7767933.9 1.00 0.1 3.65 0.45 2.05
T/U01556 11.60 516722.6 7767934.8 1.00 0.1 3.46 0.57 2.02
T/U01544 9.18 516721.6 7767946.4 1.00 0.1 0.03 3.88 1.96
T/U01527 9.69 516721.2 7767965.6 1.00 0.1 0.13 3.62 1.88
T/U01516 10.42 516720.9 7767995.0 1.00 0.1 0.02 3.63 1.83
T/U01555 11.41 516722.1 7767935.8 1.00 0.1 1.83 1.80 1.82
T/U01630 14.57 516727.0 7767856.5 1.00 0.2 3.20 0.35 1.78
T/U01540 10.75 516722.3 7767950.5 1.00 0.1 0.11 3.41 1.76
T/U01522 10.31 516724.5 7767989.7 1.00 0.1 2.74 0.74 1.74
T/U01509 7.84 516723.1 7767968.5 1.00 0.4 0.41 2.59 1.50
T/U01554 13.12 516721.7 7767936.6 1.00 0.2 2.44 0.44 1.44
T/U01525 6.65 516720.4 7767969.3 1.00 0.1 0.11 2.74 1.43
T/U01504 12.57 516721.9 7767974.2 1.00 0.8 0.52 2.30 1.41
T/U01551 12.97 516720.6 7767939.2 1.00 0.1 2.66 0.12 1.39
T/U01629 8.79 516727.2 7767857.5 1.00 0.1 0.01 2.68 1.35
T/U01620 12.86 516726.4 7767866.4 1.00 0.2 1.10 1.58 1.34
T/U01467 12.91 516714.1 7767778.1 1.00 1.0 1.09 1.49 1.29
T/U01626 12.76 516727.2 7767860.5 1.00 0.2 0.97 1.56 1.27
T/U01465 10.38 516714.2 7767777.1 1.00 1.0 2.07 0.41 1.24
T/U01510 7.84 516723.2 7767967.3 1.00 0.4 0.66 1.67 1.17
T/U01583 11.61 516723.1 7767908.7 1.00 0.1 0.14 2.01 1.08
T/U01610 12.87 516726.0 7767879.7 1.00 0.1 1.97 0.06 1.02
T/U01609 10.44 516726.0 7767881.0 1.00 0.2 0.25 1.72 0.99
T/U01546 5.81 516721.0 7767944.4 1.00 0.1 1.04 0.92 0.98
T/U01552 12.02 516720.9 7767938.4 1.00 0.1 0.81 1.05 0.93
T/U01600 6.70 516725.2 7767892.4 1.00 0.1 0.19 1.65 0.92
T/U01545 4.78 516721.3 7767945.5 1.00 0.1 1.69 0.11 0.90
T/U01492 10.60 516716.9 7767991.5 1.00 1.2 0.76 0.99 0.88
T/U01627 8.04 516727.3 7767859.5 1.00 0.1 0.04 1.69 0.87
T/U01563 10.37 516722.5 7767929.5 1.00 0.3 1.43 0.28 0.86
T/U01503 12.43 516721.6 7767975.5 1.00 0.6 1.05 0.50 0.78
T/U01587 8.72 516723.6 7767904.9 1.00 0.2 0.61 0.91 0.76
T/U01535 8.80 516722.3 7767955.9 1.00 0.1 0.43 1.02 0.73
T/U01633 8.11 516727.1 7767853.3 1.00 0.4 1.25 0.16 0.71
T/U01469 10.04 516714.1 7767779.1 1.00 1.0 0.70 0.56 0.63
T/U01515 11.77 516720.3 7767995.8 1.00 0.1 1.17 0.01 0.59
T/U01484 12.11 516710.6 7768008.4 1.00 1.7 0.08 1.09 0.59
T/U01486 9.97 516713.4 7768001.8 1.00 1.7 0.60 0.50 0.55
Sample ID(T=original &U=duplicate) Combinedweight(kg) Easting(mE) Northing(mN) SampleLength(m) Samplewidth(m) OriginalSampleGrade(Au g/t) DuplicateSampleGrade(Au g/t) Averagegrade(Au g/t)
T/U01530 3.41 516721.3 7767962.1 1.00 0.1 0.11 0.99 0.55
T/U01599 5.85 516725.2 7767893.2 1.00 0.1 0.59 0.50 0.55
T/U01526 10.08 516721.1 7767966.6 1.00 0.2 0.30 0.73 0.52
T/U01519 11.86 516722.6 7767992.4 1.00 0.1 0.32 0.58 0.45
T/U01511 4.76 516717.6 7767998.2 1.00 0.2 0.72 0.17 0.45
T/U01547 8.98 516720.8 7767943.2 1.00 0.1 0.10 0.71 0.41
T/U01541 9.10 516722.2 7767949.6 1.00 0.1 0.33 0.29 0.31
T/U01561 8.35 516724.7 7767930.6 1.00 0.2 0.58 0.03 0.31
T/U01605 16.04 516725.7 7767886.4 1.00 0.3 0.51 0.06 0.29
T/U01584 9.85 516723.1 7767907.8 1.00 0.2 0.40 0.12 0.26
T/U01524 10.75 516726.1 7767986.3 1.00 0.1 0.06 0.45 0.26
T/U01608 9.03 516725.9 7767882.4 1.00 0.1 0.36 0.15 0.26
T/U01612 10.87 516725.9 7767877.3 1.00 0.2 0.22 0.29 0.26
T/U01520 13.17 516723.3 7767991.5 1.00 0.1 0.11 0.38 0.25
T/U01559 12.91 516724.5 7767932.5 1.00 0.1 0.46 0.03 0.25
T/U01491 10.70 516715.9 7767992.3 1.00 1.5 0.20 0.23 0.22
T/U01518 12.14 516722.1 7767993.4 1.00 0.1 0.11 0.30 0.21
T/U01604 16.48 516725.6 7767887.6 1.00 0.2 0.09 0.29 0.19
T/U01489 13.11 516714.6 7767993.8 1.00 1.6 0.15 0.21 0.18
T/U01529 5.28 516721.3 7767963.3 1.00 0.1 0.19 0.12 0.16
T/U01611 10.94 516725.9 7767878.5 1.00 0.2 0.13 0.18 0.16
T/U01534 8.54 516721.9 7767957.1 1.00 0.1 0.23 0.06 0.15
T/U01505 13.16 516722.2 7767973.1 1.00 0.7 0.21 0.07 0.14
T/U01512 13.39 516718.2 7767997.6 1.00 0.1 0.08 0.19 0.14
T/U01586 10.74 516723.5 7767905.8 1.00 0.2 0.10 0.15 0.13
T/U01482 13.10 516709.4 7768010.7 1.00 1.4 0.18 0.04 0.11
T/U01607 7.47 516725.9 7767883.8 1.00 0.2 0.06 0.08 0.07
T/U01472 6.68 516706.3 7768020.5 1.00 1.6 0.12 0.02 0.07
T/U01488 11.61 516713.9 7767994.7 1.00 1.5 0.02 0.10 0.06
T/U01588 3.13 516723.7 7767904.0 1.00 0.1 0.04 0.08 0.06
T/U01476 11.71 516707.2 7768016.5 1.00 1.7 0.10 0.01 0.06
T/U01481 13.65 516708.9 7768011.7 1.00 1.5 0.07 0.01 0.04
T/U01543 8.95 516721.8 7767947.4 1.00 0.1 0.05 0.02 0.04
T/U01542 7.32 516722.0 7767948.6 1.00 0.1 0.01 0.05 0.03
T/U01477 11.47 516707.5 7768015.6 1.00 1.6 0.02 0.04 0.03
T/U01485 13.78 516711.8 7768006.9 1.00 1.5 0.02 0.04 0.03
T/U01487 11.30 516712.6 7767998.6 1.00 1.7 0.04 0.01 0.03
T/U01517 11.77 516721.5 7767994.2 1.00 0.1 0.03 0.02 0.03
T/U01471 5.83 516706.2 7768021.0 1.00 1.7 0.02 0.02 0.02
T/U01475 10.92 516707.0 7768017.3 1.00 1.8 0.03 0.01 0.02
T/U01479 11.88 516708.1 7768013.7 1.00 1.6 0.03 0.01 0.02
T/U01606 13.50 516725.8 7767885.2 1.00 0.2 0.03 0.01 0.02
T/U01480 12.53 516708.5 7768012.8 1.00 1.5 0.01 0.02 0.02
T/U01514 12.60 516719.6 7767996.4 1.00 0.1 0.02 0.01 0.02
Sample ID(T=original &U=duplicate) Combinedweight(kg) Easting(mE) Northing(mN) SampleLength(m) Samplewidth(m) OriginalSampleGrade(Au g/t) DuplicateSampleGrade(Au g/t) Averagegrade(Au g/t)
T/U01473 8.51 516706.4 7768019.4 1.00 1.7 0.01 0.01 0.01
T/U01474 9.60 516706.7 7768018.4 1.00 1.6 0.01 0.01 0.01
T/U01478 10.90 516707.8 7768014.6 1.00 1.8 0.01 0.01 0.01
T/U01513 11.40 516718.8 7767997.0 1.00 0.1 0.01 0.01 0.01

Table 1.2. Assay results from infill sampling on the Old Pirate Western Limb Vein sorted by grade

Sample ID(T=original &U=duplicate) Combinedweight(kg) Easting(mE) Northing(mN) SampleLength(m) Samplewidth(m) OriginalSampleGrade(Au g/t) DuplicateSampleGrade(Au g/t) Averagegrade(Au g/t)
T/U01428 9.88 516544.9 7768027.6 1 0.9 38.60 121.00 79.80
T/U01442 13.12 516544.0 7768029.6 1 1.0 74.70 36.10 55.40
T/U01441 10.68 516543.2 7768032.2 1 1.0 0.56 98.40 49.48
T/U01431 9.75 516545.3 7768029.4 1 0.8 13.60 41.10 27.35
T/U01424 8.55 516545.5 7768026.9 1 1.1 43.40 7.73 25.57
T/U01379 10.2 516555.2 7768016.2 1 1.0 27.10 12.45 19.78
T/U01407 14.65 516548.1 7768022.2 1 0.6 26.90 3.26 15.08
T/U01400 16.01 516551.8 7768027.2 1 0.6 9.12 16.55 12.84
T/U01461 11.14 516540.8 7768051.3 1 0.1 14.40 10.85 12.63
T/U01448 11.52 516542.9 7768036.2 1 1.1 19.70 5.26 12.48
T/U01432 11.44 516544.4 7768028.5 1 0.7 12.65 12.25 12.45
T/U01403 14.12 516549.4 7768022.7 1 1.0 2.31 18.60 10.46
T/U01443 11.19 516543.2 7768030.5 1 1.2 14.30 2.57 8.44
T/U01430 10.21 516546.2 7768030.0 1 1.1 0.07 16.15 8.11
T/U01412 14.69 516548.5 7768025.5 1 0.9 11.30 3.39 7.35
T/U01414 12.83 516546.9 7768024.0 1 1.0 6.28 8.37 7.33
T/U01457 12.33 516542.5 7768047.8 1 0.1 13.15 1.24 7.20
T/U01440 12.23 516544.2 7768033.1 1 1.0 11.75 0.04 5.90
T/U01455 11.47 516543.6 7768045.8 1 0.2 0.17 11.00 5.59
T/U01449 12.44 516544.5 7768037.8 1 1.1 9.63 0.36 5.00
T/U01447 10.23 516543.8 7768035.7 1 0.9 9.54 0.20 4.87
T/U01444 11.15 516544.4 7768034.6 1 1.0 0.51 8.34 4.43
T/U01433 10.69 516546.7 7768031.4 1 1.2 8.65 0.09 4.37
T/U01420 12.55 516546.5 7768026.5 1 1.3 0.03 8.39 4.21
T/U01451 10.07 516545.6 7768041.9 1 0.2 6.43 0.87 3.65
T/U01435 13.06 516544.8 7768030.3 1 1.0 6.19 0.93 3.56
T/U01373 17.18 516558.1 7768015.9 1 1.2 3.12 3.64 3.38
T/U01421 12.11 516548.1 7768028.6 1 0.8 5.59 0.54 3.07
T/U01454 8.8 516544.0 7768044.9 1 0.2 0.05 5.83 2.94
T/U01438 11.36 516544.2 7768031.3 1 1.0 2.54 3.23 2.89
T/U01405 15.19 516549.5 7768024.1 1 0.9 0.61 4.09 2.35
T/U01445 13.61 516543.3 7768033.8 1 1.2 2.77 0.79 1.78
T/U01376 14.07 516556.3 7768015.7 1 1.2 1.01 2.50 1.76
T/U01364 16.18 516559.5 7768010.8 1 1.0 1.48 2.02 1.75
T/U01354 16.1 516558.9 7768011.6 1 1.2 2.43 1.05 1.74
Sample ID(T=original &U=duplicate) Combinedweight(kg) Easting(mE) Northing(mN) SampleLength(m) Samplewidth(m) OriginalSampleGrade(Au g/t) DuplicateSampleGrade(Au g/t) Averagegrade(Au g/t)
T/U01367 17.16 516558.3 7768012.5 1 1.2 3.06 0.02 1.54
T/U01382 14.68 516555.8 7768019.4 1 0.7 2.84 0.06 1.45
T/U01394 13.13 516551.6 7768020.6 1 0.5 1.97 0.93 1.45
T/U01425 12.18 516547.7 7768029.5 1 1.0 2.59 0.01 1.30
T/U01406 14.83 516548.7 7768023.3 1 0.9 1.74 0.79 1.27
T/U01437 11.66 516545.0 7768032.0 1 1.0 1.89 0.62 1.26
T/U01402 14.18 516550.5 7768023.3 1 1.1 0.36 2.04 1.20
T/U01450 9.4 516546.0 7768040.8 1 0.2 0.54 1.79 1.17
T/U01439 12.15 516545.1 7768033.6 1 0.8 1.54 0.73 1.14
T/U01429 11.54 516547.1 7768030.6 1 1.3 1.96 0.27 1.12
T/U01418 12.85 516548.2 7768027.6 1 1.4 1.81 0.13 0.97
T/U01416 13.39 516548.0 7768026.2 1 1.0 0.54 1.28 0.91
T/U01417 11.17 516547.0 7768025.5 1 1.7 1.49 0.14 0.82
T/U01396 13.77 516551.4 7768022.8 1 1.5 0.53 1.06 0.80
T/U01398 14.48 516552.5 7768025.3 1 0.6 0.42 1.07 0.75
T/U01375 17.81 516557.1 7768016.3 1 1.2 0.14 1.27 0.71
T/U01395 13.67 516551.1 7768021.5 1 0.6 0.98 0.43 0.71
T/U01415 12.85 516548.7 7768026.8 1 1.0 0.40 1.00 0.70
T/U01458 11.68 516542.0 7768048.8 1 0.1 1.16 0.21 0.69
T/U01399 11.06 516552.1 7768026.2 1 0.6 1.01 0.27 0.64
T/U01397 12.76 516553.0 7768024.4 1 0.8 0.86 0.39 0.63
T/U01401 14.11 516551.1 7768023.9 1 1.1 1.05 0.20 0.63
T/U01460 11.3 516541.2 7768050.5 1 0.2 0.88 0.37 0.63
T/U01446 9.4 516542.8 7768035.0 1 1.1 0.84 0.40 0.62
T/U01391 13.71 516552.2 7768019.6 1 1.2 0.78 0.39 0.59
T/U01409 14.82 516548.9 7768024.7 1 1.1 0.20 0.81 0.51
T/U01453 9.86 516544.5 7768043.9 1 0.2 0.88 0.13 0.51
T/U01462 10.8 516540.4 7768052.2 1 0.2 0.80 0.19 0.50
T/U01369 18.29 516557.8 7768013.4 1 1.1 0.71 0.24 0.48
T/U01374 16.91 516557.1 7768015.2 1 1.5 0.45 0.37 0.41
T/U01370 18.24 516558.3 7768015.0 1 0.9 0.59 0.22 0.41
T/U01362 16.62 516559.8 7768010.0 1 1.9 0.51 0.22 0.37
T/U01411 12.26 516549.4 7768026.1 1 1.2 0.36 0.34 0.35
T/U01371 15.56 516557.5 7768014.4 1 0.9 0.32 0.29 0.31
T/U01378 15.97 516555.7 7768016.6 1 1.3 0.18 0.43 0.31
T/U01459 10.09 516541.6 7768049.7 1 0.2 0.15 0.46 0.31
T/U01413 13.84 516547.7 7768024.6 1 1.1 0.10 0.50 0.30
T/U01456 9.86 516543.0 7768046.8 1 0.2 0.23 0.37 0.30
T/U01423 9.64 516546.4 7768027.5 1 0.9 0.28 0.22 0.25
T/U01381 14.37 516555.2 7768017.5 1 1.0 0.32 0.17 0.25
T/U01404 14.06 516550.4 7768024.7 1 1.1 0.29 0.19 0.24
T/U01392 14.91 516553.5 7768021.9 1 1.2 0.04 0.40 0.22
T/U01368 19.2 516558.6 7768013.9 1 1.4 0.33 0.09 0.21
T/U01359 16.6 516561.2 7768009.6 1 1.8 0.01 0.35 0.18
T/U01434 10.64 516545.7 7768030.9 1 0.9 0.09 0.26 0.18
Sample ID(T=original &U=duplicate) Combinedweight(kg) Easting(mE) Northing(mN) SampleLength(m) Samplewidth(m) OriginalSampleGrade(Au g/t) DuplicateSampleGrade(Au g/t) Averagegrade(Au g/t)
T/U01384 14.09 516554.0 7768018.1 1 1.1 0.08 0.25 0.17
T/U01427 7.47 516545.8 7768028.3 1 1.1 0.10 0.16 0.13
T/U01386 14.74 516554.4 7768019.6 1 0.9 0.24 0.01 0.13
T/U01452 9.22 516545.1 7768042.8 1 0.2 0.13 0.11 0.12
T/U01366 16.76 516559.1 7768013.0 1 1.2 0.15 0.07 0.11
T/U01408 11.74 516549.7 7768025.4 1 1.3 0.10 0.12 0.11
T/U01372 15.8 516556.8 7768013.9 1 1.0 0.07 0.07 0.07
T/U01387 16.01 516553.4 7768019.1 1 0.9 0.03 0.11 0.07
T/U01385 13.75 516555.2 7768020.4 1 0.9 0.10 0.03 0.07
T/U01380 15.05 516556.1 7768018.2 1 1.4 0.06 0.06 0.06
T/U01419 13.4 516547.3 7768027.0 1 1.0 0.04 0.08 0.06
T/U01365 16.61 516559.8 7768012.1 1 1.4 0.04 0.06 0.05
T/U01360 16.43 516560.4 7768009.1 1 1.1 0.02 0.07 0.05
T/U01377 17.29 516556.6 7768017.2 1 1.1 0.02 0.07 0.05
T/U01393 13.73 516552.6 7768021.2 1 1.0 0.03 0.06 0.05
T/U01389 14.03 516553.9 7768020.9 1 1.0 0.05 0.03 0.04
T/U01388 14.87 516554.8 7768021.5 1 1.0 0.03 0.04 0.04
T/U01422 11.88 516547.2 7768028.0 1 0.9 0.01 0.06 0.04
T/U01357 16.51 516561.6 7768008.6 1 1.5 0.05 0.01 0.03
T/U01363 18.89 516560.2 7768011.3 1 1.6 0.02 0.03 0.03
T/U01383 16.58 516555.0 7768018.7 1 1.1 0.04 0.01 0.03
T/U01390 14.86 516553.0 7768020.3 1 1.1 0.03 0.02 0.03
T/U01436 12.83 516546.1 7768032.6 1 1.0 0.03 0.01 0.02
T/U01356 15.9 516561.4 7768007.3 1 0.9 0.01 0.02 0.02
T/U01358 15.86 516561.0 7768008.2 1 1.2 0.02 0.01 0.02
T/U01410 10.74 516547.9 7768023.7 1 1.1 0.01 0.02 0.02
T/U01355 12.39 516562.1 7768007.8 1 1.1 0.01 0.01 0.01
T/U01361 16.2 516560.7 7768010.4 1 1.3 0.01 0.01 0.01
T/U01426 11.12 516546.7 7768029.0 1 0.7 0.01 0.01 0.01

Appendix 2

All Vein Models Tonnes Gold (g/t) Ounces
Indicated 347,000 5.31 59,200
Inferred 1,327,000 11.86 505,800
Total 1,673,000 10.50 565,000
High Grade VeinModels Only Tonnes Gold (g/t) Ounces
Indicated 132,000 7.74 32,800
Inferred 354,000 22.64 257,600
Total 486,000 18.60 290,400

Table 2.1 Old Pirate Resource Estimation without utilising a top-cut. Refer release dated 16/04/2012 for further details.

*Note - totals may vary due to rounding.

Table 2.2 Old Pirate Resource Estimation with utilising 300g/t top-cut. Refer release dated 16/04/2012 for further details.

All Vein Models Tonnes Gold (g/t) Ounces
Indicated 347,000 5.25 58,500
Inferred 1,327,000 8.65 368,900
Total 1,673,000 7.95 427,400
High Grade VeinModels Only Tonnes Gold (g/t) Ounces
Indicated 132,000 7.62 32,200
Inferred 354,000 17.52 199,400

*Note - totals may vary due to rounding.