Annual report for EL 23772 'Cox River South' for the period 19 August 2008 to 18 August 2009

Abstract

EL 23772 'Cox River South' was granted to Gravity Diamonds Limited on the 19 August 2003 on the basis of encouraging historic diamond sampling data. During the first year of tenure, a FALCON(r) airborne gravity gradiometer survey was flown over a number of tenements in the area including a substantial part of the Cox River South tenement. Detailed interpretation, anomaly ranking and exploration targeting from the FALCON(r) survey was completed, and several second order priority targets were identified within EL 23772. Targets in adjacent exploration licences also being explored by Gravity were rated highly, enhancing the possibility of kimberlite pipes or alluvial diamonds occurring on EL 23772. Reprocessing of the FALCON(r) gravity data was carried out following the earlier interpretation. This considerably suppressed the noise in the original data set from a noise envelope of approximately 10 Eotvos to 3 Eotvos allowing the greater possibility of identifying smaller kimberlites such as that discovered by Gravity Diamonds at Abner Range which had a negative vertical gravity gradient response of 22 Eotvos. Helicopter-supported heavy mineral sampling was focused on a priority FALCON(r) targets within EL 23772 but sampling results were disappointing. Drainages within the exploration licence were assessed as unsuitable for stream sediment sampling so ground geochemistry was carried out on a grid over a second order gravity anomaly located within the tenement. Results were poor and require further assessment along with the results from the broader group of tenements.