Final report on exploration activities for EL 22305 'Limbunya'

Abstract

EL 22305 formed part of a farmin agreement between Ashton Mining Limited ('Ashton') and Diamond Mines Australia Pty Ltd ('DMA') covering numerous Rio Tinto-controlled tenements and applications in the Northern Territory. Under this agreement, DMA is conducting predominantly diamond exploration over the tenements utilising the newlydeveloped Falcon(tm) airborne gravity gradiometer system, which has been shown to be very effective in detecting kimberlite pipes. Gravity Diamonds Limited ('Gravity') is managing the farmin arrangement for Diamond Mines Australia and owns 100% of DMA. During the initial year of tenure, a review of historic exploration data, including surface sampling focussed on diamonds, was conducted by Gravity and a number of anomalous results were noted within EL 22305. Owing to the timing of the exploration agreement between DMA and Ashton (late July 2003) field exploration under the agreement did not extend to EL 22305 during the 2003 field season. A 50% reduction in the area of EL 22305 was made at the conclusion of Year 2. Gravity handed back EL 22305 to Ashton in March 2005 because other tenements in the farmin arrangement were deemed to have much higher priority. The licence was subsequently surrendered by Ashton on 18 April 2005. There was no further work undertaken by Ashton from the time the licence was handed back in March 2005 and the date of surrender on 18 April 2005.