Partial relinquishment report on EL 25859 Cox Project for the period 9 September 2007 to 9 February 2011

Abstract

During the first year (2007-2008) of the tenure, review of the historic exploration data, including IM data, aeromagnetic and other openfile geophysical data was carried out to evaluate the tenement prospectivty. Field exploration began with the collection of 3 gravel samples to identify macrodiamonds, microdiamonds and other indicator minerals occurrences in an area outside surrendered blocks. Severe bushfire in the area during 2008-2009 prevented any further exploration work. With the onset of 'Global Financial Crisis' in early 2009, the Gravity Diamonds restructured their future plan and decided to sign a sale contract with the Legend International Holdings. After acquiring the tenement the Legend International Holding collected further 3 gravel samples for recovery of diamond indicator minerals (DIM). Again, these samples were collected outside the surrendered blocks. In summary, surrendered blocks were considered to have low potential for diamond prospectivity and therefore no exploration work was carried out on them.