First Annual Report for the period ending 22 July 2003, EL 10189 Wilkinson Creek, Merlin Orbit Diamonds Programme

Abstract

The area covered by EL 10189 has received a significant amount of historical exploration for diamonds, mainly surface sampling and airborne magnetic surveys. Ashton Mining Limited completed the majority of this work during the late 1990's while the Merlin Diamond Mine was being evaluated and developed. Work completed by RTE within EL 10189: Compilation and review of existing geophysical, geochemical and drilling data highlighted six, low priority, airborne magnetic targets and the high priority Tintagel Prospect area where previous Ashton bulk gravel samples returned anomalous diamond counts; Six ~500 kg bulk gravel samples collected around the Tintagel Prospect area did not return any diamonds. Indicator mineral in the samples were identified as being nonkimberlitic. The results were inconclusive; A Helicopter-borne Hummingbird EM (HEM) survey, totalling 6200 line km, resulted in ten high priority HEM targets being prioritised for follow up; Gravity traverses across ten HEM and six airborne magnetic targets returned gravity lows from targets HUM07T and MAG06T; -80# soil and -2mm lag soil geochemical samples collected over the 16 prioritised geophysical targets returned anomalous geochemistry from six targets; Heavy mineral (-1mm) loam sampling over the 16 prioritised geophysical targets failed to return any diamonds. Indicator minerals were identified as being non-kimberlitic. RTE is negotiating with a selected resource company regarding the divestment of EL 10189 at the time of compilation of this report.