EL 10040 Wave Hill Victoria River Region, NT Annual Report on Exploration Activities Year two of tenure Period Ending 20 May 2004

Abstract

EL 10040 forms part of a farmin agreement between Rio Tinto Exploration Pty Ltd and Diamond Mines Australia Pty Ltd. Under this agreement, DMA will conduct predominantly diamond exploration over the tenements and will utilise the newly-developed Falcon(tm) airborne gravity gradiometer system to detect kimberlite pipes. During the first year of tenure, Rio Tinto conducted a thorough a review of historic exploration data, including considerable surface sampling focussed on diamonds, and recommended divestment of the tenement. The timing of the divestment arrangement with DMA during year two of tenure precluded the instigation of field exploration activities during 2003.