Annual report Year 2 EL 10189, 23 July 2004 to 22 July 2005

Abstract

Of the two RTE priority drill targets, HUM07T was selected for drill testing during the reporting period. A total of four reverse circulation drill holes (TND001 to TND004) and two diamond drill holes (TND005 and TND006) were completed for a total of 628m. The drilling encountered Cretaceous mudstone and sandstone overlying Cambrian/Neoproterozoic sandstone. No kimberlitic material was intersected. Fourteen drill spoil samples (04-038-001 to 04-038-014) were collected for mineralogical and geochemical analysis. The geochemical analysis did not reflect that of a kimberlitic nature and it was decided not to progress with mineralogical analysis. It is likely that the anomaly represents a sinkhole, thereby explaining the electromagnetic and gravity signatures and the nonkimberlitic geochemistry. The other RTE drill ready target, MAG06T, remains to be tested. A review of the historical sampling and geophysical datasets identified a number of anomalies for follow-up. During the reporting period, one loam sample, two stream gravel samples and eighty four soil geochemical samples were collected. Samples have not yet been processed. Further sampling is still to be completed. A morphological assessment of the alluvial diamonds recovered from bulk sampling was also completed that aimed to help resolve whether the diamonds are likely to be shedding from a primary or secondary source. The diamonds were classified into several groups based on morphology. It was found that one group has not undergone significant travel, indicative of a proximal primary source for the diamonds, however, conclusions from this study are still being drawn.