Combined annual exploration report - Year 2 EL 3336 and EL 3338, 20 January 2006 to 19 January 2007

Abstract

The licences are located on the North Australian Craton within a region that has tectonic and structural similarities with known kimberlite occurrences including the Merlin Kimberlite Field and recent Abner Range discovery. No diamond exploration activity has been completed on either licence. The closest diamond exploration includes five stream gravel samples collected adjacent to the northern boundary of EL 3336 by DeBeers in 2001, which reported negative results for diamonds and indicator minerals. More intense diamond exploration has been undertaken within 50km of the licence with numerous chromites, microdiamonds and pyropes recovered from stream gravel samples collected by Normandy, Stockdale and DeBeers. These results provide encouragement and highlight the potential for a kimberlite source to exist in the region.