EL 10072 Waterloo, Victoria River Region NT, final report on exploration activities

Abstract

EL 10072 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 is conducting predominantly diamond exploration over the tenements and is utilising the newly-developed Falcon(tm) airborne gravity gradiometer system, which has been shown to be very effective in detecting kimberlite pipes. Gravity Diamonds Ltd ('Gravity') is managing the farmin arrangement for DMA which is a wholly owned subsidiary of Gravity. 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 10072. The planned program for EL 10072 during 2004 was contingent on Gravity achieving access clearance for follow up of Falcon survey targets in the nearby Tee Dee Hill area which, like EL 10072 forms part of the original Rio Tinto 'Victoria Project Area'. Gravity was not able to get the required access clearances and this resulted in the postponement of planned exploration on EL 10072 during the 2004 field season. Gravity was granted access to the 'Falcon target areas' north of EL 10072 during 2005 and completed sampling on all priority targets during the field season. Results from this sampling yielded limited encouragement and work proposed for EL 10072 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.