Annual report Year 6 EL 24082 17 October 2010 to 16 October 2011

Abstract

On-ground activities completed during the reporting period included backhoe-assisted rehabilitation of drill holes from the previous drilling program. NADL holds exploration licence EL 24512 located on Aboriginal Land to the north of EL 24082. The sub-surface gravels within EL 24082 crop out in EL 24512 and this has been a priority target for NADL since EL 24512 was applied for in 2005. EL 24512 was granted in 2011 and NADL is currently excavating five 1,000 ton bulk samples of the gravel for processing through a heavy media separation plant for recovery of diamonds. Further exploration on EL 24082 will depend on results obtained from the bulk sampling on EL 24512. Pending results, NADL considers EL 24082 to be prospective containing a significant volume of potentially diamond bearing alluvial gravel.