Summary review of exploration, 1986 and 1987.

Abstract

In 1986 Kratos Exploration Pty decided to renew its exploration in the EL3625, 3626 and 3627 areas for diamonds and gold and in the later part of the 1986 field season it commenced a program to take and process bulk samples of stream sediments for this purpose. At the end of 1986 Kratos had taken and processed samples from 14 sites. Initial examination of gravity and/or grease table concentrates from these samples showed the presence of gold in six of them, unconfirmed microdiamonds in three and unconfirmed dianond indicator minerals (pyrope garnet, chrome spinel, picroilmenete, chrome diopside) in the three samples containing unconfirmed microdiamonds and in a further six samples. The locations of the sample sites and notes about the gold, diamonds and diamond indicator minerals found in samples taken from those sites are presented in the hard copy of the company report. CEGBEA's request that EL's 3625, 3626 and 3627 be renewed with the relinquishment of only two blocks is made in order to allow CEGBEA and Kratos to retain title to the areas they each need to complete their exploration programs in these EL areas.