Year 5 annual report for EL 9840, 23 July 2006 to 22 July 2007

Abstract

This annual report outlines exploration activities undertaken by North Australian Diamonds Limited on Exploration Licence 9840 between the 23rd July 2006 and the 22nd July 2007. This period represents year five of the license. EL 9840 is located around 100 kilometres south of Borroloola and is accessed via existing unsealed tracks leading east from the Merlin Mine. Ashton Mining has previously undertaken exploration in the area covered by EL 9840 during the 1980's and 1990's and their reconnaissance and infill sampling returned several diamond and indicator mineral occurrences that have not been followed up in detail. Work details relating to EL 9840 since that time by Rio Tinto and North Australian Diamonds Limited has included desktop reviews and field reconnaissance. No samples have been collected. In addition an assessment was initiated in relation to the potential of the license to host uranium mineralization. The outcome of the assessment is awaited and will be reported in the next annual report.