Annual report on EL 25291 13 February 2009 to 12 February 2010

Abstract

This annual report outlines exploration activities undertaken by North Australian Diamonds Limited on Exploration Licence 25291 between the 13 February 2009 and 12 February 2010. This period represents year three of the license. EL 25291 is situated on the Walhallow 1:250,000 geological mapsheet and the Lancewood 1:100,000 topographic mapsheet in the Batten Region of the Northern Territory. It is located approximately 120 kilometres south of Borroloola and is accessed via existing unsealed tracks leading north from Kiana Station. Previous exploration north of the licence has recovered large numbers of commercial size diamonds and kimberlitic chromites within major drainages. The headwaters and tributaries of some of these drainages drain a large plateau that occurs within the licence area. It is possible that a primary source (ie kimberlite) for the diamonds exists on the plateau thus increasing the prospectivity of the licence. Exploration undertaken during the reporting period included the collection of 25 loam samples to be processed for kimberlitic indicator minerals. Sample results have not been received.