SEL 22767 Annual report on exploration activities year one of tenure 17 September 2003 to 16 September 2004

Abstract

A review of available geophysical and sample data was carried out by Gravity during the current reporting period and this confirmed the potential for diamondiferous kimberlites to be located within the McArthur River tenement block. On this basis, a Falcon survey was planned to cover was flown over the Mt Lynott tenement. The survey was conducted in October, 2003 and acquired a total of 5136 linear kilometres of gravity gradiometer, magnetics, and laser scanner data. Approximately 28 percent of this survey was contained within SEL 22767. Data was processed by BHP Billiton's Falcon Operations Group and delivered to Gravity in February 2004. 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.