Sylvester Project Annual Report 17 June 2003 to 16 June 2004

Abstract

The Sylvester Project (EL 23683 Lower Sylvester and EL 23685 North Sylvester) is located on Brunette Downs Pastoral Lease. The areas lie within the Georgina Basin and indications are that about 200m of mostly carbonate Cambrian sediment overlies an Upper Proterozoic basement, though there is magnetic character that indicates the basement structure could be more complex. The primary target commodity in the area is diamond. Previous exploration by Ashton Mining and the ADE Joint Venture discovered many micro diamonds in the district including several samples from within the subject EL areas. In fact Ashton relinquished the area and then later reapplied for it to more thoroughly evaluate the potential. While numerous microdiamonds were found, no indicator minerals were identified in the extensive sampling, and the area was again surrendered. The secondary drainages within the target areas were not intensively followed up, and drainage development is poor, so this presents difficulties. During the initial phase of exploration of ELS 23683 and 23685, work consisted of: Literature research of previous exploration, geological survey and geophysical survey over the ELs and surrounding district; Data compilation; Acquisition and interpretation of departmental geological and airborne geophysical data sets; Planning of field program; Field geological reconnaissance and collection of samples for diamond and geochemical exploration; Preparation and mineralogical examination of Diamond samples; Analysis by low level scans for 63 elements including precious metals and platinoids; Interpretation of results; Planning and budgeting; and Reporting. In addition, visits to other stakeholders in the area for introduction purposes were completed, and the Sacred Sites register was searched. The results of sample examinations for diamonds and indicator minerals has located a high-Al, low-Cr spinel, which is considered to have mildly enhanced the diamond potential of the areas. Detailed airborne geophysics and follow up geochemical and possibly diamond sampling are planned for the current term of the Licences.