Relinquishment report on blocks relinquished at the conclusion of year two of tenure for EL 24634 'Matchbox Creek'

Abstract

EL 24634 forms part of a major diamond exploration enterprise in the Northern Territory initiated by Gravity Diamonds (then Gravity Capital) in 2003. The foundation of this enterprise has been a farmin agreement between Rio Tinto Exploration Pty Ltd ('Rio Tinto') and Diamond Mines Australia Pty Ltd ('DMA', a 100%-owned subsidiary of Gravity Diamonds) covering numerous Rio Tinto-controlled tenements and applications in the Northern Territory. Under this agreement, DMA has conducted diamond exploration over the tenements utilising the recently-developed Falcon(tm) airborne gravity gradiometer system, which has been shown to be very effective in detecting kimberlite pipes. Gravity has also acquired a significant tenement holding in its own right in the NT. The initial Falcon(tm) programs in 2003 resulted in the discovery of a kimberlite pipe within the 'Abner Range' survey area, some 35 kilometres northeast of EL 24634, and this led Gravity to apply for a number of areas in proximity to the discovery. EL 24634 comprising 30 sub blocks was granted to Gravity on 25 November 2005. A relinquishment of 15 blocks comprising the northern and southern sections of the licence was made at the conclusion of Year 2.