Annual report Year 3 EL 25580 16 March 2009 to 15 March 2010

Abstract

This annual report outlines exploration activities undertaken by North Australian Diamonds Limited on EL 25580 between the 16 March 2009 and 15 March 2010. This period represents year three of the licence. On 18 September 2007 NADL granted Top End Uranium Limited (TEUL) the right of access to the land covered by EL 25580 for the purpose of exploring for, mining and processing minerals other than diamonds. This report includes work undertaken by both NADL and TEUL. EL 25580 is situated on the Walhallow (SE53-07) 1:250,000 geological mapsheet and the Lancewood (6163) 1:100,000 topographic mapsheet in the Northern Territory. It is located around 120 kilometres south of Borroloola and is accessed via existing unsealed tracks leading west from Kiana Station. Previous exploration has included several wide spaced geophysical surveys by CRA and BHP and stream and loam sampling by CRA and Ashton Mining. Chromites and microdiamonds were recovered in loam samples in the north-eastern part of the licence and a single microdiamond was recovered in a stream sample in Spellesie Creek. Airborne surveys have been completed including electromagnetic, magnetic and gravity that have identified numerous kimberlite-type anomalies. Three anomalies were drilled that did not intersect kimberlite. Many of the anomalies were attributed to Proterozoic inliers within the younger limestone, however many anomalies remain that have not been adequately tested. Field Work during the reporting period included geological reconnaissance and the collection of 16 reconnaissance stream and loam samples. Results for these samples received 31/05/2010 were all negative for diamonds.