EL 23931 Batten Annual Report on exploration activities Year 1 of tenure 3 February 2004 to 2 February 2005

Abstract

EL 23931 'Batten' was granted to Gravity Diamonds Ltd (Gravity) on 03 February 2004. The EL lies within a general area where Gravity is operating a large diamond exploration program, much of which is under an exploration agreement with Rio Tinto group companies and Diamond Mines Australia (DMA), which is a 100% owned subsidiary of Gravity. During 2003 and 2004, DMA had an exclusive arrangement with BHP Billiton to deploy the Falcon airborne gravity gradiometer system in diamond exploration in Australia. The Falcon system has proved very effective in diamond exploration since its development by BHP Billiton in the late 1990's. During the first year of tenure Falcon data was acquired of the entire area of EL 23931. The system includes airborne gravity gradient data, high resolution magnetics and accurate elevation data derived from on-board differential GPS and laser scanner devices. The area of coverage amounted to approximately 23 km (~250 line kms). Survey results have been processed and the initial interpretation / target definition process is largely complete. Field follow up is planned during the 2005 dry season subject to work and access clearances currently being sought.