Report on the findings from drill-hole LV09-001 drilled in collaboration with the Northern Territory Geological Survey

Abstract

In April 2009, North Australian Diamonds Limited submitted a proposal to the Northern Territory Government Geophysical and Drilling Collaboration for assistance funding for a diamond core drill program. The application was successful, and this report summarises the results from the drill program. The objective of the program was to test a moderately-deep, discrete magnetic anomaly by drilling. This feature, known as the Leviathan, is highly unusual in its geological context and conceivably could represent a number of possible causes including: a kimberlite or carbonatite of unrelated age to the nearby Merlin field; a mineralized breccia pipe; or an intrusive mafic plug. The magnetic anomaly lies within Proterozoic-aged basement rocks of the McArthur Group and was modelled to be at a depth of 400m. The body was modelled as a vertical plug with dimensions of 1000m by 500m. Previous attempts to test this target were abandoned at relatively shallow depths. The drill hole has clearly not intersected the source rock for the Levithan anomaly. Hence it can only be concluded that the source is either deeper or that it was missed. Prior to undertaking further drilling it is recommended that a magnetic probe be run down the hole with a view to determining which is the likely case.