Second annual report for EL 9722 'Packsaddle', for the period ending 14 April 2005

Abstract

The Packsaddle project is located approximately 430 kilometres southeast of Darwin on the Moroak (5668) 1:100,000 and Urapunga (SD53-10) 1:250,000 mapsheets. There are two known kimberlites in the area (Packsaddle and Blackjack), which is sited approximately 186 kilometres ESE of the township of Katherine. These kimberlites were discovered by De Beers during a sampling and drilling program over this area between 1984 and 1989. The Packsaddle project consists of Exploration Licence (EL 9722) covering an area of 47.58 square kilometres over the Packsaddle 01 Kimberlite dyke. This EL was granted on 25 April 2003 with Tawana becoming manager on the 15 April 2004. During the current period a reconnaissance heavy mineral sampling program of four samples (totaling 52 kilograms) from near the Packsaddle Kimberlite was completed. All four were negative confirming the short and subdued kimberlite indicator trails within the current creeks draining the kimberlite area. It is still proposed to excavate a 200 tonne sample from the Packsaddle Kimberlite Dyke and process this with a Dense Media Separation (DMS) plant, similar to the current operations by Tawana Resources NL at Timber Creek (under EL 10358). The purpose of this large sample is to establish whether the dyke contains large diamonds, and if so what the likely quality of the diamond could be. It is reported that all the drill samples submitted of microdiamond work by Stockdale provided fine diamonds, but no commercial sized stones have been reported from the Packsaddle 01 Kimberlite dyke.