Year 3 annual and final report for EL 24699 Top Springs Creek East

Abstract

EL 24699 formed part of a major diamond exploration enterprise in the Northern Territory initiated by Gravity Diamonds (then Gravity Capital) in 2003. The foundation of this enterprise had been a Farmin agreement between Rio Tinto Exploration Pty Ltd ('Rio Tinto') and Diamond Mines Australia Pty Ltd ('DMA', a 100%-owned subsidiary of Gravity Diamonds) covering numerous Rio Tinto-controlled tenements and applications in the Northern Territory. Under this agreement, DMA has conducted diamond exploration over the tenements utilising the recently-developed Falcon(tm) airborne gravity gradiometer system, which has been shown to be very effective in detecting kimberlite pipes. Gravity also acquired a significant tenement holding in its own right in the NT. The initial Falcon(tm) programs in 2003 resulted in the discovery of a kimberlite pipe within the 'Abner Range' survey area, some 35 kilometres northeast of EL 24699, and this led Gravity to apply for a number of areas in proximity to the discovery. EL 24699 comprising seven (7) sub blocks was granted to Gravity on 25 November 2005. The area had previously formed part of EL 9926, one of the Rio Tinto-controlled tenements included in the above Farmin arrangement. The decision to proceed with a partial relinquishment on EL 9926 was made just prior to the discovery of the Abner Range kimberlite pipe, and subsequently it was agreed that Gravity should re-acquire the ground in its name, but include any new tenure within the terms of the Farmin. The licence was surrendered on 19 November 2008.