Fourth annual and final report for EL 9722, period ending 14 April 2007

Abstract

The Packsaddle Project is located approximately 430 kilometres southeast of Darwin on the Moroak (5668) 1:100,000 and Urapunga (SD53-10) 1:250,000 mapsheets. There are two known kimberlite dykes in the area (Packsaddle and Blackjack), which is sited approximately 186 kilometres ESE of the township of Katherine. These kimberlites were discovered by De Beers during surface sampling and drilling over this area between 1984 and 1989. The Packsaddle Project currently consists of Exploration Licence 9722 covering an area of 47.6 square kilometres over the Packsaddle 01 Kimberlite dyke. This EL was granted on 15 April 2003 with Tawana Resources NL becoming manager on the 15 April 2004. This single remaining Licence has been surrendered by Tawana Resources NL. During the current reporting period no field work was conducted. After a review of previous and current diamond exploration it was decided this project at this time did not warrant the high expenditure required to further test the known kimberlite, or the discovery of new ones. The results of the sampling indicated that just one-bag only samples (around 10L) are insufficient to recover indicator minerals at any distance from the kimberlite. Thus larger samples are required and should involve iron stripping to remove more of the unwanted heavy minerals. This shows the importance of close spaced detailed sampling in this environment. The known kimberlite may still warrant a low cost bulk sample program to establish if the dyke does indeed contain large diamonds, and if so, what the likely quality of the diamonds could be. Given the current high cost and extended delays with field activities (both personnel and equipment) it is considered that the current Licence shall be surrendered.