Annual and final report for EL 24882 Larrimah 23 March 2009

Abstract

Finching Pty Ltd became operator of a joint venture and conducted a review of industrial mineral potential as well as organizing and completing a detailed 5038 line kilometre airborne magnetic, radiometric and digital terrain survey in the first year of tenure. Subsequently the data was processed by Southern Geoscience consultants and an atlas of radiometric and magnetic images prepared. Interpretation of the data showed several possible pipe like (kimberlitic) bodies which warrant drilling. A field visit was made to the area to determine logistics and to ascertain the logistics for drill access tracks to the three most promising targets. The Larrimah Hotel was used as an exploration base. Access was very difficult with thick bush and numerous stream channels prohibiting vehicular access. It was decided that the cost of conducting drill access and completing the drill programme would be very costly and the resources of a suitable joint venture partner should be obtained. Negotiations continued in attempting to attract a Joint Venture partner for this licence and others in the area. Presentations were made to Directors of South Star Diamonds, Kimberly Diamonds, Gravity Diamonds and several other exploration companies. It is apparent that diamonds are not a sort after exploration commodity in the Top End at this stage and it has not been possible to secure a JV partner. The licence was therefore surrendered on 23 December 2008.