Annual report on exploration activities year 4 of tenure 19 August 2006 to 18 August 2007 EL 23772 Cox River South

Abstract

Data processing and interpretation from the 2003 Falcon survey was completed during 2004, however advances in noise suppression techniques developed by the BHPB Falcon Team during 2006 have been applied to the entire dataset - including the data within licence EL 23772 during the reporting year. This enhanced data set has highlighted several new Falcon targets in the tenement area, with drainages identified that can test these target areas. As in early 2006 a site visit was made to the proposed sampling areas. Suitable sample sites were located - however several were completely inundated by water in June and July 2007. A 50kg Heavy Mineral Sample was taken from a drainage downstream of one of these targets, with a single chrome spinel grain recovered from this sample in July 2007. Microprobe results of the chemistry of this sample are still pending. Sampling of the other targets identified is planned for later in 2007. To enhance access to the area existing station tracks were slightly rehabilitated during June 2007. This activity has been carried out to service all tenements in the district either held by Gravity Diamonds in its own right or in joint venture with Rio Tinto Exploration. Standard gravel sampling techniques were utilized from the best available trap sites in the sampled drainage, with 45 kg of -1.6mm sieved sample material obtained.