Region:		Western Australia
Commodity:		Au
Project Name & Location:		Mt Thirsty, 25km North West of Norseman
Target Deposit Type & Model:		>200K ounce shear hosted, Archaean gold
Land Status:		1 Granted Exploration Licence, 2 Granted Prospecting Licences
Ownership:		Option to acquire 100% interest

The Mt. Thirsty Project, operating under an option agreement with Barrick Gold of Australia, is located about 25km northwest of the Norseman mine at the southern end of the Norseman-Wiluna Greenstone belt in the Eastern Goldfields of Western Australia. The project area is located between the Chalice Gold mine and Norseman. Chalice has produced 600,000 ounces of gold averaging 5.5 grams per tonne. Norseman has produced 7 million ounces. Mt. Thirsty is to the south of, and interpreted to be within the same structural corridor as the recently discovered Trident deposit, estimated at 927,000 ounces at 5.8g/t Au (as of December 2007) (www.avocaresources.com.au).

On 5th June 2008, Australian Mineral Fields (The Company) and Barrick Gold of Australia agreed to extend the Option compliance date from 6th July 2008 to 31st December 2008.
The Company considers Mt. Thirsty to be highly prospective and is pursuing high-grade gold targets with its systematic approach. This methodology integrates geologic mapping based on a thorough understanding of regional and project geology, lithogeochemistry, soil geochemistry and PIMA (Portable Infrared Mineral Analyzer). Such a rigorous exploration and economic evaluation process helps contain exploration risk.

Based on preliminary estimated economic modeling, initial exploration is focusing on the discovery of a deposit of at least 200,000 ounces of gold at greater than 7 grams per tonne that can be mined in a small-scale underground operation. The ready availability of highly skilled contract mining firms and excess mill capacity in the district strengthens Australian Mineral Fields ability to develop potential resources within the project area.
Mt. Thirsty's single exploration license and two prospecting licenses cover approximately 20 square kilometres. There is good access to the project area by 25 km of paved road from Norseman.

Mt. Thirsty Project Area Regional Geology

RECENT RESULTS

In October 2006, the Company completed 7 reverse circulation (RC) drill holes for a total of 604m to test previously defined strong gold in soil anomalism at the interpreted sediment/ultramafic contact (green dots in Figure 1). The holes, drilled on 400m spaced lines, returned 4m composite assay results with a peak gold value of 4m @ 1.43g/t Au from 28m in MTRC0001 (drilled at -60 degrees towards 270)1 proximal to the previously identified sediment/ultramafic contact and a thin felsic intrusive unit. 1m splits from this composite returned 1m @ 4.81g/t Au from 28m, with a repeat assay of 5.38g/t Au2. A strong arsenic response was also seen in the samples at and close to the contact. The Company interpreted the results of the drilling as confirming the geological and exploration model for the prospect and the significant gold mineralisation as an early indication of the style of mineralisation the Company is targeting at this project.

13 RC holes were drilled at the Mt Thirsty project during May/June of 2007 for a total of 1120m (blue dots in Figure 1). Drilling was following up on the 1m @ 4.8g/t Au from the first round of drilling in late 2006. Drill spacing was at approximately 50 x 50m with three lines drilled to the north, and three lines drilled to the south of the anomalous hole. All holes were drilled at -60 degrees towards 270. The deeper hole on each line also targeted the magnetic anomalism as modelled by geophysical data, which was interpreted not to have been intersected in the first round of drilling.

All holes successfully intersected the sediment/ultramafic contact. An increase in foliation was commonly seen approaching the contact, with associated pyrite in some holes. Significant quartz veining was seen throughout many of the holes. Much of this was plain looking “bucky white” quartz, but various intervals contained laminated and multi-phase veining. An increase in visible magnetite and an increase in magnetic susceptibility readings in the approximate area of the magnetic anomaly as geophysically modelled suggested to the Company that the anomaly has been intersected in at least three holes. A peak result of 1m @ 0.3g/t Au was returned from the drilling (MTRC0015 from 59m down hole), with anomalous arsenic values recorded in all holes close to and at the sediment/ultramafic contact.

Figure 1: RC drilling positions over magnetic image 2006 drilling is represented by green dots, 2007 drilling by blue dots(grid is in metres).

The Company’s focus during 2008 will be to further progress two soil anomalies identified in the central portion of the Project area (Figure 2), as well as considering infilling soil coverage in the southern part of the project, where spacing over prospective stratigraphy is still at approximately 1km. Further consideration will also be given to the interpreted spur defined by anomalous soil geochemistry in the main target area (Figure 2).

Figure 2: Summary plan of Mt Thirsty Project showing foci for proposed exploration in 2008. Yellow polygons indicate gold in soil anomalies >10ppb, grey dots indicate current soil coverage.(grid is in metres).

Exploration History

Placer Dome, acquired by Barrick Gold in February 2006, first identified Mt. Thirsty's potential during a regional targeting exercise. Located on the southeast corner of the Pioneer Dome Complex, the project has geophysical and geochemical similarities to other deposits located along strike to the north.
Geochemical surveys and rock chip sampling completed by Placer Dome defined coherent gold and pathfinder element (arsenic, antimony, molybdenum, tungsten and bismuth) anomalies in an area which Placer Dome saw as potentially structurally comparable to the geological setting for Kanowna Belle, a gold deposit of approximately 5 million ounces, or Wallaby, a gold deposit of approximately 7 million ounces. Similar features of these deposits include:

• Interpreted extension “gravity slide” structures off the granitic dome, defined by interpreted metamorphic hydrothermal fluid indicators (As, Sb).
• Drill data suggesting the presence of an intrusive with similar chemistry as those intepreted by Geoscience Australia to be spatially related to mineralisation.
• Interpreted to straddle a large, regionally prospective structure.
• Interpreted anti-formal structural position off the nose of the Pioneer Dome as a potential mineral deposition site.

Figure 3: Interpreted Geological Model.

Historical activities included geological mapping, surface grid soil sampling, rock chip analyses and broad spaced lines of shallow regional Air Core and RAB drilling, most of which was apparently targeting nickel mineralization. More recent work included multi-element/litho-geochemical re-sampling of old drill spoils and further soil sampling.

Placer Dome's work to date returned the following results:

• BLEG (Bulk Leach Extractable Gold) gold-in-soil anomalism with a peak of 19.9ppb Au in a background of around 5ppb Au, including two coherent Au anomalies approximately 1km long >7.42ppb (95th percentile).
• Aqua Regia gold-in-soil anomalism with a peak of 17.3ppb Au in a background of around 5ppb Au including two coherent approximately 1km long >7.3ppb Au anomalies (95th percentile) which correlated well spatially with the BLEG samples.
• The litho-geochemical work has lead to a revised interpretation of the project geology, most strikingly with the interpretation that the sediments in the central northern part of the tenement are younger “late” basin or “Timiskaming” sediments, rather than the previous view of the rocks belonging to the older Black Flag group of sediments. These types of sediment are similar to those that host giant gold deposits such as Wallaby and Kirkland Lake. They are also found in close proximity to many other Archaean gold deposits.
• Coherent moderate alteration in drill spoil rock chips identified by the litho-geochemical work correlates spatially with the northern of the two soil anomalies.
• Pathfinder element anomalism further confirms the northern target as a priority.

Due Diligence soil sampling by the Company (19 samples) confirmed the position and tenor of gold in soil anomalism previously identified by Placer Dome Australia, and subsequent infill and field reconnaissance better defined the spatial relationship between the soil anomalism and the interpreted position of the sediment/ultramafic contact.

Figure 4: Interpreted geology of the project area, before and after litho-geochemical work.

¹ 4m composites were collected for each hole and samples were submitted for analysis for Au and As to Genalysis in Kalgoorlie. Composites were collected using a PVC spear by Company staff from a 7/8 split sample. Splitting of the samples and diagonal spearing of the split sample reasonably ensured best practical representation of the original sample with minimum potential for bias. All samples were bagged, checked and sealed on site and then transported to the Kalgoorlie Genalysis sample preparation facility, by Company staff.

² 1m split samples were selected for re-analysis on the basis of anomalous gold and/or arsenic content as returned from original 4m composite samples, by the project geologist. The original 1/8 split sample had previously been set aside at time of drilling for this purpose. All relevant samples were bagged, checked and sealed on site by Company staff and then transported to the Kalgoorlie Genalysis sample preparation facility, by registered freight.