Annual report on exploration activities for EL 5953, year four of tenure, 3rd August 2003 to 2nd August 2004

Abstract

EL 5953 was granted to Rio Tinto Exploration Pty Ltd ('Rio Tinto') on 3 August 2000. Since that time, Rio Tinto has established the diamond prospectivity of the area with helicopter-supported surface sampling. During 2003, Rio Tinto concluded an exploration agreement with Gravity Capital Limited ('Gravity') and Diamond Mines Australia Pty Ltd concerning the deployment of the Falcon(tm) airborne gravity gradiometer system over Rio Tinto's diamond tenements in northern Australia (ASX announcement by Gravity 25/07/2003). The Falcon(tm) system would be used to detect kimberlite pipes. Gravity Capital commenced diamond exploration in the Northern Territory during July 2003. The 2003 flying program covered parts of EL's 5953 and the adjacent EL5954, and focussed on areas of strongly anomalous diamond indicator mineral sampling results, obtained from Rio Tinto's prior work. While the principal target in the area is diamonds, some interest is also directed toward base metal deposits.