The Bonney Downs Project lies within the East Pilbara Terrane of the Pilbara Craton. The regional architecture is characterised by large granitic complexes separated by greenstone belts, high strain zones and faults. The ELs are located over the Kelly Greenstone Belt, the McPhee Dome and the Mosquito Creek Basin.

Over the past seven years the iron rich East and West Pilbara regions of Western Australia have had a significant resurgence in gold exploration resulting in impressive finds for persistent and focussed junior companies.

Sayona Mining Limited has ten tenements considered prospective for intrusion-related gold mineralization, similar in style to the Hemi discovery.

New Age Exploration Limited has projects in the Mallina-Whim Creek Basin of the Pilbara Craton near to the Hemi Gold deposit.

Carnaby Resources has the the Strelley Gold Project where the company has identified a 4 km Gold Corridor with significant gold results from several prospects.

Calidus Resources Ltd has the Warrawoona Gold Project and working on expansion of its 1.7 million ounce Resource Base.

Novo Resources has been working in the Pilbara since 2017 and has the Beatons Creek Project, the Nullagine Project (including the mine), the Marble Bar Project, the Egina Project and several other high-quality projects. The company also acquired the assets of Millenium Minerals including a plant with an annual processing capacity of 1.88 million tonnes near the township of Nullagine. In 2023 Novo entered into an agreement with De Grey Mining Limited for the advancement of exploration at the Becher Project and surrounding tenements. De Grey may spend up to A$25 million within four years to earn a 50% interest in the relevant tenements, following which the 50/50 Egina Joint Venture will be formed.

De Grey Mining Limited’s Hemi Gold Project is now the most impressive venture thus far with a mineral estimate of over 10 million ounces of gold. They plan to develop a large scale, low strip ratio, low-cost open pit mine. This find is the result of considered and innovative thinking on the part of the exploration crew and executives of the company. They have demonstrated the potential of the Pilbara to host large scale mining projects where previously it was considered an iron ore host with a scatter of gold projects.

Sahul Exploration Pty Ltd plans to learn from the story of the Hemi Gold Project. We have re-examined our targets within our Bonney Downs Project to determine any similarities between our combined resources and the Hemi model. Taking this overview of our prospects has shown the likelihood of a similar large-scale system supporting our individual target areas. Considering this we have decided to modify our 2025 exploration program. Our preliminary focus will now be on airborne and ground geophysical surveys to identify drill hole targets over the combined project area. Once these are identified we will proceed with any necessary heritage surveys, lodge programs of work with the Mines Department and perform necessary site earthworks. We are confident and excited to take this next step towards developing the full potential of our Bonney Downs Project.

Tectonic setting of the North Pilbara Craton. Modified from Hickman et. al., 2016

This granodiorite hosts Sahul’s greenfields gold discovery. In summary, the Heart prospect has continuous gold mineralisation which has been defined over 900m strike length with an average thickness between 5 and 15m and drilled to a depth of 80m. Mineralisation remains open down dip and along strike. At the Heart, Sahul declared their maiden Mineral Resource of 3.6Mt with a gold grade of 1.5 g/t for 170,000 ounces (cut-off grade is 0.5 g/t Au). The Mineral Resource was classified as inferred by the competent person at Snowden Optiro. The Heart is located near the northeast contact of the granodiorite.

In addition, along the southeast contact of the granodiorite, Sahul drilled their discovery hole with SRC004 returning 14m at 1.93 g/t Au from 16m. Sahul drilled an additional 11 holes all intercepting mineralisation at the 1550 exploration target since. Company 3D wireframing suggests 55,000 to 70,000 ounces of gold at a grade ranging between 1.3 and 1.7 g/t Au. With good geological and grade continuity, the 1550 target offers an opportunity to rapidly grow the company’s Mineral Resource.

Targets along the western contact of the granodiorite also show potential to grow the company’s Mineral Resource. At the Six Pack prospect, Sahul’s first ever hole drilled, SRC001, returned 6m at 2.31 g/t Au from 55m. Further north, at the Gold Show prospect, historic hole ASH015 returned 16m at 1.29 g/t Au from 30m.

Structural breaks within and surrounding the granodiorite are interpreted to serve as host to the orogenic mineralising fluids. The structural corridor channelling mineralising fluids to the granodiorite was recently mapped and several gold targets also occur along this structural trend. Some of the best drill intersections along this mineralising corridor are as follows:

At Igloo, historic hole IGRC21 returned 18m@ 3.07 g/t Au from 70m and Sahul drill hole SRC010 returned 19m@ 2.72 g/t Au from 117m.

At Millers, historic holes QCRC043 returned 22m at 2.76 g/t Au from 14m and QCRC045 returned 14m at 3.52 g/t Au from 56m.

At Imperial, historic QCRC057 returned 10m at 4.21g/t Au from 40m. North of the granodiorite and along the structural trend, MD1 retuned 6.1m at 9.02 g/t Au from 13.9m.

None of these targets form part of Sahul’s Mineral Resource.

The full list of drill intersections is tabulated at the end of this section.

The granodiorite is also thought to be the “engine” more broadly responsible for the older hydrothermal base metal mineralisation hosted by the Panorama Formation. Extensive surface sampling at the project delineates several kilometres long Cu and Zn soil geochemical anomalies. Some are coincident with geophysical anomalies and remain untested. Historic intersections like 22m at 7.87% Cu from 19m in QCRC017 (Igloo Prospect) and 17.74m at 16.11% Zn from 46m in ALCO019 (Emperor Prospect) confirm the base metal potential of the Bonney Downs project.

Major base metal porspects and Cu and Zn soil anomalism surrounding the granodiorite at the Bonney Downs project

E45/5201

This tenement straddles rocks of the Kelly Greenstone belt and the McPhee Dome. The greenstone belt consists of volcanic and sedimentary sequences including the Warrawoona Group and the Gorge Creek Group. Ultramafic rocks described as serpentinised metadunites intrude the northern area of the tenement. Sahul has identified these rocks to be prospective for Ni, Cr, Cu and Co mineralisation. Sahul also recently reported highly anomalous Au results from their initial reconnaissance rock chip sampling.

A soil sampling programme was recently completed over the anomalies and results are pending.

E46/1335

This tenement lies within the northern margins of the Mosquito Creek Formation. Sedimentary rocks of the DeGrey Group predominate and comprises conglomerate, sandstone and siltstone. The Mosquito Creek Formation hosts several nearby gold deposits that occur within shear zones known as the Blue Spec Fault Zone, the Middle Creek Fault, and the Sandy Creek Fault. Sahul recently reported highly anomalous Au results from their initial reconnaissance stream sediment sampling.