Annual report - Year 1, EL 24500, 29 August 2005 to 28 August 2006

Abstract

This annual report outlines exploration activities undertaken by North Australian Diamonds Limited on Exploration Licence 24500 between the 29th August 2005 and the 28th August 2006. This period represents year one of the license.Exploration Licence 24500 is situated on the Walhallow (SE53-07) 1:250,000 mapsheet, and the Lancewood 1:100,000 topographic mapsheet in the Batten Region of the Northern Territory. It is located around 100 kilometres south of Borroloola and is accessed via existing unsealed tracks leading south from the Merlin Mine or east from Kiana Station. CRA Exploration and Ashton Mining Limited has undertaken exploration for diamonds throughout the area since the early 1980's. Exploration has included airborne and ground geophysical surveys, stream gravel and loam sampling, and drilling of identified anomalies. A review of available historic data identified six indicator mineral anomalies that have not been resolved. Work undertaken during the reporting period included the desktop review of available historic data and a small helicopter-based field sampling program that included the collection of seven stream gravel samples. Sample results are awaited.