Fifth annual report on EL 5954 'Benda Bluff', 29-03-2003 to 28-03-2004

Abstract

EL 5954 forms part of a farmin agreement between Rio Tinto Exploration Pty Ltd ('Rio Tinto') and Diamond Mines Australia Pty Ltd ('DMA') covering numerous Rio Tinto controlled tenements and applications in the Northern Territory. A Falcon(tm) (airborne gravity gradiometer system) survey was planned to cover much of EL 5954 and parts of the neighbouring tenement EL5953 'Mt Lean', which is also included in the Rio Tinto-DMA farmin arrangement. The survey was conducted in November-December 2003 and results were received by Gravity Capital in March 2004. Interpretation and exploration targeting were in progress at the time of this report. While the principal target in the area is diamonds, some interest is also directed toward base metal deposits.