Second annual report for EL 22209, EL 22210 and EL 24725, for the period ending 8 June 2007

Abstract

The tenements are prospective for diamond and base metal mineralization. A review of previous exploration activity undertaken for Gulf Mines by the GeoDiscovery Group in and around ELs 22209, 22210 and 24725 has highlighted the potential for discovering diamonds within the area. Up to five micro-diamonds, five chromites and a single picro-ilmenite have reportedly been discovered by previous explorers within the area of the licences. In addition there are reports of macro-diamonds having been discovered within a 30km radius of the tenements. A review of existing wide-spaced aeromagnetic data has identified up to twenty three (23) discrete magnetic features. A small program of heavy mineral sampling was proposed in the previous annual report. Clearance has been obtained from the NLC to undertake this work which is now planned for the 2007 field season.