First annual report for EL 25579 16 March 2007 to 15 March 2008

Abstract

This annual report outlines exploration activities undertaken by North Australian Diamonds Limited on EL 25579 between the 16 March 2007 and 15 March 2008. This period represents year one of the licence. On 18 September 2007 NADL granted Top End Uranium Limited the right of access to the land covered by EL 25579 for the purpose of exploring for, mining and processing minerals other than diamonds. This report includes work undertaken by both NADL and TEUL. EL 25579 is situated on the Bauhinia Downs and Walhallow 1:250,000 geological mapsheets and the Glyde and Lancewood 1:100,000 topographic mapsheets in the Northern Territory. It is located around 120 kilometres south of Borroloola and is accessed via existing unsealed tracks leading north from Kiana Station. Previous exploration has included several wide spaced geophysical surveys by CRA and BHP and stream and loam sampling by CRA and Ashton Mining. Chromites were recovered in two stream samples in the south of the licence. The licence is host to the western margin of a plateau that drains northward into diamond-bearing drainages. Large numbers of diamonds have been recovered and thus the potential for kimberlite discovery on plateaux such as that occurring within the licence is considered high. Field work completed during the reporting period included geological reconnaissance of historic positive sample sites. The potential of the licence to host uranium mineralization was assessed by internal staff and external consultants. The uranium exploration potential of the licence is based largely on whether Westmoreland Conglomerate and/or Seigal Volcanics occur within the licence beneath the Bukalara Sandstone. To the west of the Emu Fault (ie area that includes the licence area), which is made up of a number of splay faults within the licences, there may be volcanics present beneath the Bukalara sandstones. The geology is complex with faulting and tilting of blocks and drilling will be required to determine whether these volcanics are present and represent the Seigal Volcanics or most probably Settlement Creek Volcanics.