Region:		Western Australia
Commodity:		Au
Project Name & Location:		Cundeelee
Target Deposit Type & Model:		>1 million ounce intrusion related gold
Land Status:		1 Exploration Licence Applications
Ownership:		AusMF 100% Gold Rights. (Part of the Tropicana Alliance Agreement with between Teck-Cominco and Australian Mineral Fields)

In March 2007, Australian Mineral Fields announced it had formed a strategic alliance with Teck Cominco Australia Ltd (Tropicana Gold Belt Alliance Agreement).   The alliance, with the gold rights to all tenure initially to be 100% Company owned, enables the Company to conduct a comprehensive exploration program in the emerging Albany-Fraser Province in Western Australia.   Teck Cominco's Cundeelee tenement application (E28/1604) is part of the alliance.   The tenement was granted on 22nd August 2008.

The Cundeelee Project is located about 200 km east of Kalgoorlie and 180 km southwest of AngloGold Ashanti / Independence Group's Joint Venture Tropicana Discovery. The tenement is also approximately 40km northeast, and interpreted to be along strike from AngloGold Ashanti / Independence Group's "New Gold Discovery" at the Beachcomber 1 Prospect, where 1km x 200m spaced AC drilling intersected 3m @ 65.8g/t from 24m (Click here to see Independence Group Quarterly Report December 2006.) and 10km to the west of Dominion Mining's Corona prospect (6m @1.50g/t Au).

The project area comprises some 200 square kilometers of the Yilgarn Craton-Fraser Range Mobile Belt Collision Zone, in the southeastern part of Western Australia. Access is via the Trans line from Kalgoorlie. Tenure occurs predominantly on an Aboriginal land reserve and as such an access agreement is required to be negotiated with the traditional owners. There is only minor outcrop throughout the tenure, but overburden is interpreted to be minimal.

Figure 1: Location plan for Cundeelee tenement over combined gravity (colour) and magnetics (texture) image.

CONCEPTUAL TARGET PLAY FOR TROPICANA STYLE MINERALIZATION

The Company considers its Cundeelee Project to be a conceptual target play, as was Tropicana, and will be exploring for a similar style of mineralization. Drilling at Tropicana intersected gold mineralization associated with intense pyritic and sericitic hydrothermal alteration cross-cutting a package of metamorphic rocks. (See Tropicana JV Update 18-Aug-2005 at www.igo.com.au.) The AngloGold Ashanti / Independence Group JV are likewise targeting a multi-million ounce gold deposit and announced an Australasian Joint Ore Reserves Committee (JORC)-compliant resource in December 2007 of 4.05Moz Au (62.8Mt @ 2.01g/t Au at a 0.6g/t Au cut-off). (See Independence Group NL news release 3-Dec-2007 at www.igo.com.au.)

Australian Mineral Fields intends to complete initial exploration on the Cundeelee project using a combination near surface carbonate sampling to assess the project area’s prospectivity.

Previous Exploration

Previous exploration in and around the tenement appears to be limited, with Quadrant Resources and Stockdale Prospecting conducting limited diamond exploration (heavy mineral sampling and reconnaissance aeromagnetic surveying) covering the southern portion of the tenement in 1998 and 1999.   No reports have been found of any active exploration for gold in the tenement area.  

Project Borders AngloGold Ashanti's Holdings

The Company's tenement abuts the southwestern edge of Anglogold-Ashanti's tenement holding in the area (see Figure 2). The Tropicana Prospect was discovered using Air Core drilling that followed up on surface gold anomalies, delineated from geochemical sampling that was completed over Anglogold-Ashanti and Independence Group's land package, and extends down to the edge of Australian Mineral Fields' tenements (See Tropicana JV Update (4-Jul-06) at www.igo.com.au.)

Figure 2: Fraser Range North tenements location relative to the extent of AngloGold Ashanti and Independence Group's tenement.

Figure 3: Schematic cross-section showing target model for the Fraser Range North Project, regionally located close to the leading edge of the Albany-Fraser Mobile Belt which on-laps onto the Archaean Yilgarn craton. Crustal thickening and magmatism along the suture maybe important in the ore forming processes.