Relinquishment report on the block dropped at the conclusion of year 5 of tenure period ending 2 February 2009

Abstract

EL 23931 'Batten' was granted to Gravity Diamonds Ltd ('Gravity') on 03 February 2004. The EL lies within a general area where Gravity is operating a diamond exploration program, much of which is under an exploration agreement with Rio Tinto group companies and Diamond Mines Australia (DMA), which is a 100%-owned subsidiary of Gravity. During 2003 and 2004, DMA had an exclusive arrangement with BHP Billiton to deploy the Falcon airborne gravity gradiometer system in diamond exploration in Australia. The Falcon system has proved very effective in diamond exploration since its development by BHP Billiton in the late 1990's. During the first year of tenure Falcon data was acquired over the entire area of EL 23931. The system included airborne gravity gradient data, high resolution magnetics and accurate elevation data derived from on-board differential GPS and laser scanner devices. Coverage was obtained over the entire tenement, an area of some 23 km(2). Within the relinquished block a single gravel sample was taken from the only sizeable drainage within the block. 13 chromites of an indeterminate chemistry were recovered from this sample. The source of these chromites is probably from outside the relinquished block boundary and the block was relinquished. At the conclusion of Year 5 the northern block of EL 23931 was relinquished from the licence.