Combined annual report on exploration activities for EL 10427, EL 10428 and EL 10436 year two of tenure 24 July 2003 to 23 July 2004

Abstract

During the past year of tenure, a review of historic exploration data, which included considerable surface sampling focussed on diamonds, was conducted by Gravity. The surface sampling had identified macrodiamonds, microdiamonds and other indicator mineral occurrences and clusters. On this basis, a Falcon survey was planned to cover the majority of EL 10427. The survey was conducted in October 2003 and results were received by Gravity Capital in February 2004. Interpretation and exploration targeting from the Falcon data has been largely completed, with initial target areas defined for ground follow-up. Statutory requirements are currently being finalised and it is envisaged that testing of these targets will commence during the current field season.