Annual report Year 3 EL 27895, 20 September 2012 to 19 September 2013

Abstract

Exploration Licence 27895 is situated on the Wallhallow (SE53-07) 250K geological mapsheet in the Northern Territory. It is located around 100 kilometres south of Borroloola. Funding constraints and the focus of the Company's resources to progressing the borehole mining operation at the Merlin Diamond Mine on ML 1154 resulted in no field activity being undertaken on EL 27895 during the reporting period. It is anticipated that once the operation is underway there will be additional personnel and funding for exploration activity. Results from EL 27895 and adjoining Licences suggest the source of the indicator minerals could be either a local primary source (ie kimberlite) or a secondary source (ie transported from a distal source and redistributed). To test this it is proposed to undertake costeaning using a backhoe to determine the origin of the soils containing the indicator minerals. Heavy mineral samples will be collected of the excavated material for processing and recovery of kimberlitic indicator minerals. This program will aim to determine if the indicator minerals are likely to be sourced from a distal source rather than a local source within the exploration Licence. If it can be shown that the indicator minerals are not derived from a distal source this will provide encouragement to continue the search for a primary source.