Relinquishment report for the period ending 8 June 2008, Robinson River Project

Abstract

The tenements are in an area with potential diamondiferous kimberlites and base metal mineralization on Aboriginal Land. Previous work in the area has found up to five microdiamonds, five chromites and a single picro-ilmenite. Macrodiamonds are known to occur within 30km of the area and the Merlin diamond deposit is to the west of the tenements. An aeromagnetic survey has indicated up to 23 discrete magnetic features resembling kimberlites. The tenements were granted in July 2005 with the NLC arranging the first clearance meeting in December, 2006. Following this clearance and negotiation of approved sample sites planning was made to undertake work prior to July 2007. Due to heavy rains associated with cyclones that summer and accessibility issues work was delayed. Application was made to renew the tenement in full on the two year anniversary in July, 2007 but was refused by the Department. Given the protracted negotiation and compromises in terms of vetoed area being excluded which were made to simply have the tenements granted it was a blow to lose a further 50% of the area with no work undertaken. Despite significant negotiation costs no work was possible on the relinquished areas of these tenements prior to the reduction. As reported in the First Annual Report, Consulting Geologists 'GeoDiscovery Group' of Brisbane undertook a desktop study of the area to evaluateprospectivity and plan diamond exploration over the area. During this period arrangements were being made for the initial clearance meeting. Due to recourcing issues within the NLC the meeting was finally held at Robinson River in December, 2006. The traditional Owners approved the majority of proposed sample sites but were unwilling to have the survey undertaken by helicopter. Due to heavy rains in the summer of 2007 the field work was not commenced until after the anniversary date in July. Although a renewal without reduction was requested it was not allowed. No field work was undertaken on the relinquished areas.