Final report on exploration activities for EL 10430 'Robinson River'

Abstract

EL 10430 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 Year 2 of the licence, a review of historic exploration data, including considerable surface sampling focussed on diamonds, was conducted by Gravity and numerous anomalous results were noted in and around EL 10430. Owing to the timing of the exploration agreement between DMA and Ashton (late July 2003) and prioritisation of field exploration on other tenements in the McArthur River project field based exploration did not extend to EL 10430 during the 2003/04 field season. A 50% reduction in the area of EL 10190 was made at the conclusion of Year 2. Gravity handed back EL 10430 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.