Final report on exploration activities for EL 9028 'Tee Dee Hill NE, Victoria River Region

Abstract

EL 9028 formed part of a farmin agreement between Rio Tinto Exploration Pty Ltd ('Rio Tinto') 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 Falcon(tm) airborne gravity gradiometer system to detect kimberlite pipes. Gravity Diamonds Ltd is managing the farmin arrangement for Diamond Mines Australia and owns 100% of DMA. The above farmin agreement was executed during the early stages of the first year of tenure of EL 9028. Rio Tinto had initially conducted a review of historic exploration data, including considerable surface sampling focussed on diamonds. DMA subsequently consolidated the data compiled by Rio Tinto and considered the priority of the area for airborne surveying. Gravity concluded that the area was not of sufficient priority to warrant a Falcon(tm) survey in the initial stages of the DMA-Rio Tinto farmin arrangement. An area some 50 km to the SW of EL 9028 was selected for Falcon(tm) surveying during the 2003 field season. A review of the kimberlite potential of EL 9028 was completed subsequent to follow up of targets generated from the Falcon(tm) survey mentioned above. Based on this review, Gravity handed back the licence to Rio Tinto in June 2005 and the licence was subsequently surrendered on 11 July 2005.