Final report on exploration activities for EL 9926 Tatoola Creek

Abstract

EL 10436 Top Spring forms part of a farmin agreement between Rio Tinto Exploration Pty Ltd ('Rio Tinto') and Diamond Mines Australia Pty Ltd ('DMA') covering numerous Rio Tinto tenements and applications in the Northern Territory. Gravity Diamonds Ltd (formerly Gravity Capital Ltd) is managing the farm-in arrangement for Diamond Mines Australia. EL 10427 Spellesie Creek and EL 10428 Lancewood Creek 2, which were previously reported in combination with EL 10436, were surrendered during year 4 of tenure. Under the terms of the farm-in agreement, DMA was conducting predominantly diamond exploration by utilising the Falcon(tm) airborne gravity gradiometer system. The Falcon(tm) system has been shown to be effective in detecting kimberlite pipes. Falcon(tm) data was acquired over the majority of EL 10427 during 2003, and followed up during 2004. No kimberlites were discovered. EL 10436 is considered prospective for commercial sources of diamonds. Historic sampling has identified kimberlitic indicator mineral occurrences, including diamonds within the tenements. Exploration within EL 10436 during year 4 of tenure comprised a detailed review of historical indicator mineral sampling results within the tenement, the collection of 3 loam samples and field inspection of 2 small, circular spectral anomalies evident in regional Aster satellite data. Results from sampling programs implemented during 2005 were disappointing, however, they confirmed the conclusions reached from the analysis of historic sampling results - which suggested that previous indicator mineral recoveries within the EL were both sporadic and difficult to repeat. Based on the sampling results obtained by DMA in 2005, further detailed sampling has not been recommended within EL 10436. During Year 5 of the licence, high resolution aeromagnetic data previously collected by Ashton was acquired and reprocessed by DMA. Detailed interpretation of this dataset was completed. Although no high priority targets were identified, a number of recommendations resulted from the interpretation process. Gravity handed back the licence to Rio Tinto in March 2008 and the licence was subsequently surrendered on 18 June 2008. There was no further work undertaken by Rio Tinto from the time the licence was handed back by Gravity and the date of surrender on 18 June 2008.