Annual report on exploration activities year one of tenure 19 August 2003 to 18 August 2004 EL 23771 Mount Young

Abstract

EL 23771 Mt Young was acquired by Gravity Capital Limited on the 19 August 2003. During the first year of tenure, on the basis of encouraging diamond sampling data from nearby tenements, a Falcon airborne gravity gradiometer survey was flown over a substantial part of the Mt Young tenement. The survey was completed on September 27th, 2003 and acquired a total of 5153 linear kilometres of gravity gradiometer, magnetics, and laser scanner data. Approximately 5% of this survey was contained within EL 23771. Data was processed by BHP Billiton's Falcon Operations Group and delivered to Gravity Capital in November 2003. BHP Billiton's Falcon Operations Group has identified a number of gravity gradient and magnetic anomalies that may indicate the presence of kimberlite pipes. The majority of the anomalies are gravity gradient lows. No coincident magnetic and gravity gradient anomalies have been identified Detailed interpretation, anomaly ranking and exploration targeting from the Falcon data by Gravity Capital is nearing completion, with several target areas already identified for followup work. Statutory requirements for field access and approvals for work programs are currently being finalised and it is envisaged that testing of these targets will commence during the current field season.