7th Annual report for EL 9742 Border Diamonds, year ending 14 May 2008

Abstract

Exploration Licence (EL) 9742 'Border Diamonds' is located on the southern boundary of the 1:250,000 Sheet of FINKE SG5306, which is also the Northern Territory and South Australian border boundary. No exploration work was carried out during this year of tenure. Work was carried out selecting and flagging a new access track. A new access track is required due to the long, poor access using an existing Station fence line track which is no longer maintained. This track crosses a number of creeks which would are impassable to drilling rigs. Also, this existing track takes 1.5 hrs. to travel 22kms. The proposed new track will cut the distance from the Finke Road to the exploration activity site to 10 kms. and the time to access to 30 mins. This will also allow accommodation to be moved from site to Kulgera. A Site Clearance certificate for the new access track was sought from the CLC in 2007, but was not completed until Sept. 2008. This did not allow for any exploration work to be carried out within the year 2007-8. The project is at a stage where the next phase of exploration requires exploratory drill holes in two areas. No other type of exploration work is now seen as of any further value to this project. There are two target areas for different commodities. These two areas are in the same proximity. Previously 3 RC holes were to be drilled on a 400Hc. oval shaped photo anomaly. This anomaly has been mapped as an an intrusive body with radiating fault lines and is cnsidered to possibly be either a Kimberlite or a Carbonatite. Due to thick transported cover of sand and soils the only way of determining what we are dealing with here is to drill exploratory holes to determine the geology of this body under cover. Previous surface sampling for diamond indicators over this area on two different exercises returned, separately, one only G9 Pyrope Garnet, but no other indicators. These sample locations and the oval shaped anomaly lie within the Australian G2 Diamond Corridor. The second exploration objective is to use shallow auger or air-core drilling to track down the location of a lost Gold source previously found but the location was not GPS'd. The approximate location (within 2 Sq. kms.) is known, however, after numerous attempts to relocate the site it has not yet been found. Shallow (300mm. deep) soil sampling was not successful. Over 300 samples were taken over an area of 4 sq. kms. The discovery sample was a lump (?5-10 kgs.) of ironstone which assayed 24 ppm AU+ 35% Fe+100ppm Bi. The ironstone appeared to be Hematite. There were only 3 lumps of this material in a line, sitting on sand. No other outcrop. We have 50m spaced aeromag. over this area, but nothing of any interest stands out.