Final report on exploration activities for EL 9669 'Cox River', for the period 1 November 1996 to 31 October 2006

Abstract

EL 9669 'Cox River' formed part of a farmin agreement between Rio Tinto Exploration Pty Ltd and Diamond Mines Australia Pty Ltd ('DMA') covering numerous Rio Tinto tenements and applications in the Northern Territory. Gravity Diamonds Ltd (formerly Gravity Capital Ltd) is managing the farm-in arrangement for Diamond Mines Australia. Under the terms of the farm-in agreement, DMA is conducting predominantly diamond exploration by utilising the Falcon(tm) airborne gravity gradiometer system. The Falcon(tm) system has been shown to be effective in detecting kimberlite pipes. EL 9669 was considered prospective for commercial sources of diamonds. Historic sampling had identified kimberlitic indicator mineral occurrences, including diamonds within the tenement. During 2003 Falcon(tm) data was acquired over all of EL 9669. The flying program also included coverage of other proximal exploration licenses controlled by Rio Tinto (and included in the Rio Tinto - Gravity Diamonds - DMA joint venture). Previous work carried out included detailed interpretation, anomaly ranking and exploration targeting from the Falcon(tm) data by Gravity Diamonds, with several target areas identified for follow-up work. Statutory requirements for field access and approvals for work programs were finalised to allow for the testing of these targets to commence during year 9 of tenure. During Year 9 of EL 9669, 9 Falcon(tm) anomalies were field inspected and sampled where appropriate. A total of 7 loam samples were collected during a broader exploration programme in the Hodgson Project area. Results for samples collected during Year 9 of tenure became available during Year 10 of tenure, but were disappointing. No further work programs were proposed and the tenement expired on 31 October 2006.