Final report on exploration activities for EL 22329 'Horse Creek'

Abstract

EL 22329 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 first year of tenure, Ashton conducted a thorough a review of historic exploration data, including considerable surface sampling focussed on diamonds, and recommended divestment of the tenement. The timing of the divestment arrangement with DMA during year two of tenure precluded the instigation of field exploration activities during 2003. A work programme was submitted to the Northern Land Council in April 2004 at Tee Dee Hill located some 35 kilometres to the north. The Northern Land Council was unable to provide access clearance for the 2004 field season. As a direct result planned exploration on EL 22329 during the 2004 field season was postponed until an agreement could be reached for the project area. No on-ground work was completed in the tenement during year 3. A 50% reduction in the area of EL 22329 was made at the conclusion of Year 3. Gravity handed back EL 22329 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.