Partial relinquishment report EL 25859 Cox project for the period 9 September 2007 to 19 September 2011

Abstract

This report collates exploration activities conducted over the relinquish blocks of the EL 25859 since their grant on 20 September 2007. The Legend International Holdings (Legend) held and managed this title since 2009 after its acquisition from the Gravity Capital Limited. It has been a part of Cox Project. However, its pre- 2009 ownership/management history is complex. During this period Gravity Diamonds Ltd on behalf of Diamond Mines Australia conducted all of the diamond exploration work on the tenement when it was part of the Hodgson Diamonds Project. 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 drainage samples to identify microdiamonds and indicator minerals occurrences from an area outside the surrendered portion of EL 25859. 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 exploration plan and decided to sign a sale contract with the Legend International Holdings. After acquiring the tenement, Legend conducted helicopter and ground based field reconnaissance survey and collected further 3 gravel samples from photographic anomaly for recovery of diamond indicator minerals (DIM) from the surrendered part of EL 25859. Laboratory results from these samples were not encouraging. In summary, surrendered blocks are considered to have low potential for diamond prospectivity and therefore relinquished.