Annual report for EL 23771 'Cox River West' for the period 19 August 2008 to 18 August 2009

Abstract

EL 23771 'Cox River West' was granted to Gravity Capital Limited on the 19 August 2003. On the basis of encouraging diamond sampling data from nearby tenements, a FALCON(r) airborne gravity gradiometer survey was flown over a substantial part of the Cox River West tenement during the first year of tenure as part of a larger survey. Detailed interpretation, anomaly ranking and exploration targeting from the FALCON(r) survey was completed, however no priority targets were identified within EL 23771. Targets in adjacent exploration licences also covered by the survey were rated highly and implied the limited possibility that kimberlite pipes or alluvial diamonds could occur on EL 23771. Helicopter-supported heavy mineral sampling was carried out the adjacent exploration licences focused on priority FALCON(r) generated targets. Field reconnaissance was carried out at the same time on EL 23771 but no appropriate sample sites were identified. Reprocessing of the original FALCON(r) gravity data with updated noise suppression algorithms considerably lowered the final data noise envelope (3 eotvos) and allowed the selection of more subtle targets similar to that associated with the small kimberlite discovered by Gravity Diamonds at Abner Range which had a negative gravity response of 22 Eotvos. Several small second order anomalies located within the tenement were unable to be assessed by stream sediment sampling through lack of suitable trap sites. They were followed up with geochemical sampling and a grid of samples was taken using station tracks for access. Equivocal results require further assessment before the tenement may be relinquished.