Calvert Hills Project Joint Annual Report for the period 3 March 2005 to 2 March 2006

Abstract

Exploration for diamonds carried out over the Calvert Hills Project during the reporting period and included selected airborne EM coverage and follow up ground gravity surveys, along with on ground geological investigations. During mid 2005 some 3,300 line kms were flown by Fugro Airborne Surveys Pty Ltd, with 1,251 line kms over EL 22245, 417 line kms over EL 23119, 120 line kms over EL 23510, 1,392 line kms over EL 22251 and 120 line kms flown over EL 23118. A total of 14 EM target anomalies, some with multiple signatures, were generated from the Foelsche (EL 22245, EL 23510 and EL 23119) survey and 9 EM targets from the Selby survey (EL 22251). The Abner Range EM survey (EL 23118) was inconclusive. The Foelsche EM targets were ground truthed before any follow up by ground gravity surveys. Six Foelsche EM anomalies were followed up by ground gravity surveys during October 2005. A number of EM and gravity anomalies (FEMG-1, FEMG-5, FEMG-9 and FEMG-13) reported coincident geophysical signatures, and form the basis for proposed drilling during the 2006 field season. The remaining 8 Foelsche EM targets will be followed up by ground gravity surveys during the 2006 field season.