Region:		Western Australia
Commodity:		Au
Project Name & Location:		Sunday Project
Target Deposit Type & Model:		>200Koz narrow high-grade vein deposit
Land Status:		22 Prospecting Licences, 1 Mining Lease
Ownership:		AusMF earning in to 72% of Gold Rights

In March 2008, Australian Mineral Fields signed a Farm-in agreement with Hannan’s Reward Ltd (ASX – HNR) covering the gold rights to the Sunday Project, about 20 km east of Leonora, in the Eastern Goldfields Province of Western Australia. Sunday, a project containing what the Company considers to be high-grade vein gold targets, is situated in the Keith-Kilkenny Tectonic Zone (KKTZ), a structural corridor that is host to such significant deposits as Thunderbox and Tarmoola.

The summary terms of the agreement are:

• AMF has the opportunity to earn an interest in the gold rights at Sunday after meeting a minimum expenditure commitment within the next twelve months followed by the right to earn approx. 70% of the project gold rights within a total of three years.
• AusMF will manage gold exploration activities.
• The agreement pertains to gold rights only.
• The agreement accepts the terms of a prior agreement between Hannan’s Reward and a consortium of Prospectors (the Baker JV) which defined the terms under which Hannan’s Reward purchased a 90% equity in the Project area. This agreement also provides the Baker JV with a free carry through to decision to mine, at which point they must elect to contribute or convert to a 2.5% NSR.

The project area comprises approximately 25 square kilometers of the Yilgarn Craton in the south-eastern part of Western Australia. Access is via the Leonora-Laverton road east from Leonora, and then by bush tracks. Tenure covers open scrub and brush land, with moderate outcrop in the central and southern parts of the project area. The remainder of the project is covered by transported sediments including those associated with an active drainage system.

Figure 1: Location plan for Sunday tenements.

Figure 2: Project Tenure overinterpreted geology showing historic drilling.

ADVANCED PROJECT WITH DRILL READY TARGETS

The Company considers the Sunday Project to be an mid-staged project with drill-ready targets. The exploration model for the project area is targeting narrow high-grade vein lode deposits. While exploration drilling has been conducted throughout the tenement area, the existing transported cover has meant that the target within fresh Archaean bedrock has only been tested to any significant depth by the 17 Reverse Circulation holes drilled in 2005. The company feels that this drilling provided geological encouragement in the form of a brecciated alteration system associated with anomalous gold mineralisation, and in combination with the conclusions of the lithogeochemical and hyperspectral study completed in 20062, three Reverse Circulation drill targets have been defined. These targets can be quickly and cost effectively tested.

The Company will be applying its systematic approach, integrating geologic mapping based on 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.

Significant gold intercepts publicly released or provided by Hannan’s Reward from the Mt Stewart tenements include (No verification has currently been completed by the Company):

*All intercepts quoted are down hole depths, true widths are not known.

Work completed

Recently, the Company completed a detailed field assessment program at the Sunday project, which included the re-logging and re-sampling of existing drill collars for alteration mapping purposes, as well as field mapping. In addition a structural assessment of the historic Sundat small scale open-pit at the North-western end of the property was also completed. As part of this process, a number of samples were collected within the area of the pit and these have returned high grade results from rock-chips. From 13 rock chip samples, all but one sample returned gold grades of greater than 0.1g/t Au, with four samples returning grades above 1g/t, including 42.2, 44.1 and 62.1 g/t gold, with strong repeat sample correlation. The results occur in the southern portion of the historic Sundat small-scale open pit in Riedel tension vein arrays which appear to continue along strike into the wall at the south of the pit area, an area where limited historic drill testing has occurred.

Figure 3: Photographs from the Sundat pit, indicating the approximate location of two of the high grade rock chip samples

Table 2: Locations and assay values for Sundat pit rock chip sampling5

PREVIOUS EXPLORATION¹

The following summary of previous exploration is taken from published and unpublished reports by Hannan’s Reward1. No verification has currently been completed by the Company.

• During the early to mid-1970’s the region was explored for nickel and base metals. Most work was of a reconnaissance nature with little drilling and few gold analyses.
• Between 1987 and 1989, Hillmin Gold Mines Pty Ltd explored some of the Sundat-Mt Stewart area for gold. Their work was largely comprised of wide spaced (800x50m) RAB drilling to test aeromagnetic targets. It is probable that some of these holes were ineffective at testing the entire regolith profile. Most holes were around 30m deep and there were few intercepts above 0.1g/t Au (best 1m @ 1.80g/t Au in hole, ST80).
• Decade Mining Resources NL focussed on the Sundat pit area between 1987 and 1992. They completed RAB and RC drilling. No mining was undertaken by Decade or by a later company, Maldon Minerals NL, who acquired the project.
• Between 1993 and 1994, Sir Samuel Mines NL and Jubilee Goldmines NL conducted 300x25m and 400x50m-spaced lag sampling over much of the existing project area. Few significant results were returned. Multi-client aeromagnetic data was purchased from World Geoscience.
• Normandy Exploration Ltd explored the current Malcolm Creek area tenements and the Sunday-Sundat pit area during 1995-96. They completed aeromagnetic interpretation, -80 mesh surface soil sampling, surface BLEG soil sampling, RAB drilling and limited (5 holes) RC drilling. The RAB drilling tested aeromagnetic targets and weak to modest soil anomalism generated by their sampling and that previously completed by Sir Samuel/Jubilee in 1993-94. There were few significant intercepts in either the RAB or RC drilling.
• Mr Glenn Baker (Six Mile Prospecting) became involved with the general Sunday area in 1995. Since that time he, and associates, have conducted exploration programmes involving soil sampling, RAB, Aircore and RC drilling. Near-surface, 1m deep, geochemical sampling using a small RAB rig was conducted over the Sunday-Sundat pit area, generally covering the areas of outcrop and subcrop, central to the project area. Sample spacing was 200x50m and several anomalies were delineated that were later followed up with drilling. Aircore and RC drilling was completed to the immediate northwest of the Sundat pit and returned several significant intercepts, such as 8m @ 1.5g/t Au, 6m @ 3.0g/t Au and 6m @ 1.6g/t Au, over a strike length of approximately 100m. Reconnaissance Aircore drilling was completed in the Malcolm Creek and Mt Stewart tenement areas to test aeromagnetic and structural targets and generated numerous regolith-hosted intercepts in the 0.1-1.0g/t Au range.
• Hannan’s Reward became involved in the project in late 2003, and completed Aircore and Reverse Circulation drilling at both the Mt Stewart and Malcolm Creek parts of the project, in particular at Mt Stewart where an extensive gold-mineralised corridor has been defined within the regolith profile. Limited rock chip sampling (P37/5903) and auger soil sampling (P37/6149), along with acquisition of regional aeromagnetic and radiometric data has also been completed.
• A lithogeochemical and multispectral study was completed across the Mt Stewart project area during 2006, involving re-sampling of bottom of hole rock chip samples. The study identified evidence of alteration systems in the areas previously RC drilled by Hannan’s Reward (Halley, 20062) and identified two targets (Figure 5), which have not been followed up.

Figure 4: Magnetic image of the Mt Stewart tenements showing maximum gold in hole values, and RC drilling targets(grid are in metres).

Figure 5: Magnetic image of the Mt Stewart tenements showing tungsten values, and RC drilling targets identified in lithogeochemical and multispectral study (Halley, 20062). The two targets shown in this image correspond to the northern two shown in Figure 4.

MINERALISATION WITHIN THE SUNDAY PROJECT AND SURROUNDING AREA

The Sunday Project is located on the same corridor (Keith-Kilkenny Lineament) as the Thunderbox gold mine and Waterloo nickel sulphide deposits - approximately 50km to the north-northwest (Figure 1).

The Sunday Project is located within Archaean greenstone lithologies, which are folded as part of the Malcolm Anticline, adjacent to the regionally extensive Keith-Kilkenny fault zone/lineament. Proterozoic dykes cut the Archaean stratigraphy in the northern and southern parts of the project area. The Sundat pit is in an area of intensely sheared and folded mafics/ultramafics. Folding and/or kinking within these lithologies may control the location of gold mineralisation at this occurrence.

While the central part of the project area covers patchy to extensive areas of outcrop and subcrop, the north-western and south-eastern parts of the project are covered by transported sediments associated with palaeo-drainage and ephemeral watercourses. The thickness of this cover varies considerably depending on the presence or absence of the various palaeochannels, however, previous drilling indicates a thickness of between 10 and 60m of transported overburden. In general the most deeply weathered parts of both the Malcolm Creek and Mt Stewart tenement groups coincide with areas of most intense deformation. These areas are evident in drilling as corridors of highly foliated rocks such as mafic and felsic schists.

Evidence of gold mineralisation throughout the length of the project area includes alluvial showings, numerous shallow old workings through to major turn-of-the-century underground workings such as those at the Sunday and Sundat workings. Most of these workings, however, occur within the areas of shallow or no cover, such as those in the Sunday and Sundat pit area and to the north-west and immediate south-east. The areas of thick alluvial and palaeochannel cover were inaccessible to the prospectors and miners of the 1890’s and the early part of the last century.

Gold production from the various workings in the general Sunday Project area has been recorded as 4,535t for approximately 1,744oz Au from the period between 1897 and 1912 and from between 1976 and 1984 (Baker, 20013). The small pit at Sundat (also referred to as Sundat South) represents the most recent mining activity. Gold was mined by the Lawnside Holdings Pty Ltd syndicate in the early 1990’s (Baker, 20013). 1,461t of ore was treated at the Bannockburn mill in 1993 and returned an average grade of 2.24g/t Au for a total of 105oz Au. Mr Glenn Baker treated a further parcel of the stockpiled ore (15,000t @ 2.30g/t Au, recovered) at the Sons of Gwalia mill in 2002 for approximately 1,110oz Au (Stephens, 20034).

¹ Jorgensen, G. C., 2006, Sunday Project, Malcolm Creek Tenements P37/5909, 5910, 5912, 5917, 6035 & 6036, Annual Mineral Exploration Report for the Period 1st January 2005 to 31st December 2005, unpublished Hannan’s Reward Ltd report, Report Number HNR-GCJ012 , 11p.

² Halley, S., 2006, Report on Lithogeochemistry from the Mount Stewart region, unpublished Mineral Mapping Pty Ltd report, dated 01/11/2006, 26p.

³ Baker, G.W., 2001, Sunday Regional Project, Malcolm, Leonora, Western Australia, Project Report for Gold & Base Metals, unpublished Six Mile Prospecting report, 27p.

⁴ Stephens, C., 2003, Independent Consulting Geologist’s Report, prepared by RSG Global for inclusion in the Hannan’s Reward NL Prospectus, RSG Global Job Number EGA003, 34p.

⁵ Rock chips assayed for gold by aqua regia digestion, solvent extraction and graphite furnace atomic absorption spectrometry, detection limit 0.01ppm