EL 10048 Scrutton Range McArthur River Region NT, final report on exploration activities

Abstract

EL 10048 forms part of a farmin agreement between Rio Tinto Exploration Pty Ltd (Rio Tinto) and Diamond Mines Australia Pty Ltd (DMA) covering numerous Rio Tintocontrolled tenements and applications in the Northern Territory. Under this agreement, DMA will conduct predominantly diamond exploration over the tenements and will utilise the newly-developed Falcon(tm) airborne gravity gradiometer system, which has been shown to be very effective in detecting kimberlite pipes. Gravity Diamonds Ltd is managing the farmin arrangement for Diamond Mines Australia and owns 40% 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 in and around EL 10048. Owing to the timing of the exploration agreement between DMA and Rio Tinto (late July 2003) field exploration under the agreement did not extend to EL 10048 during the 2003 field season. Gravity Diamonds conducted extensive field based programmes during the 2004 field season. These work programmes focussed on a number of targets defined by the Falcon(tm) airborne gravity gradiometer surveys within the Tanaburs area located immediately south of EL 10048. Work included heavy mineral drainage, loam and conventional surface geochemical sampling. Due to exploration prioritisation on adjacent project areas the planned exploration on EL 10048 during the 2004 field season was postponed and subsequently unable to proceed due to the onset of an early wet season. Results from sampling on nearby licences during 2004 and early 2005 yielded limited encouragement and work proposed for EL 10048 was not considered worthwhile. Gravity handed back the licence to Rio Tinto in February 2006 and the licence was subsequently surrendered on 6 March 2006. There was no further work undertaken by Rio Tinto from the time the licence was handed back by Gravity and the date of surrender on 6 March 2006.