Report on blocks relinquished at the conclusion of year 5 for EL 23772 Cox River South, period ending 18 August 2008.

Abstract

During the first year of tenure, on the basis of encouraging historic diamond sampling data from nearby tenements, a Falcon airborne gravity gradiometer survey was flown over a substantial part of the Cox River South tenement and also over neighbouring tenements. Detailed interpretation, anomaly ranking and exploration targeting from the Falcon survey by Gravity Diamonds was completed, and several 2nd order priority targets were identified within EL 23772. Targets in adjacent EL's currently being explored by Gravity are rated highly, with the possibility of kimberlite pipes or alluvial diamonds occurring on EL 23772 being enhanced. Reprocessing of the original Falcon gravity data was carried out by BHPB Falcon operation with updated noise suppression algorithms that lowered the noise in the original data set from approximately 10 Eotvos to 3 Eotvos. Small kimberlites discovered by Gravity Diamond at Abner Range had a negative gravity response of 22 Eotvos Helicopter-supported heavy mineral sampling was carried out adjoining portions of EL 23772 focused on priority Falcon targets was carried out in previous years During the reporting period a ground geochemistry program was initiated over a 2nd order gravity anomaly located within the tenement, but in the unrelinquished portions. No adequate gravel sample sites or Falcon anomalies have been identified within the relinquished portions of the tenement.