EL 9965 Victoria River Victoria River Region, NT Annual Report on Exploration Activities Year two of tenure Period ending 20 May 2004

Abstract

EL 9965 forms part of a farmin agreement between Rio Tinto Exploration and Diamond Mines Australia Pty Ltd. DMA will conduct predominantly diamond exploration using the Falcon(tm) airborne gravity gradiometer system to locate kimberlite pipes. Gravity Capital Ltd is managing the farmin arrangement for Diamond Mines Australia and owns 40% of DMA. 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 and Falcon is yet to be flown.