Strangways Project EL 10364 Mud Tank, EL 22443 Strangways, EL22446 Alcoota and EL 22623 Philogopite Final combined report for the period 6 December 2001 to 27 January 2006

Abstract

Flinders Diamonds Limited (FDL) initially applied for exploration licences in the Strangways Range area to investigate discrete regional dipolar magnetic anomalies which might be indicative of kimberlitic or lamproitic diamondiferous intrusive pipes. EL 10364, Mud Tank was granted on 6 December 2001 and EL 22443, Strangways, EL 22446, Alcoota and EL 22623, Phlogopite were subsequently granted on 20 December, 2001. Surrenders of the 4 exploration licences were submitted on 27 January 2006. Diamond exploration over the four year tenure of these exploration licences comprised regional interpretation and regolith map compilation, ground magnetic traverses over selected features, a 48 hole RAB drilling program over 4 areas totalling 1021 metres and heavy mineral sampling. While results have not been highly significant follow up of the source of indicator minerals in at least two samples and sampling of catchments draining the Woolanga lineament may be justified. In the course of investigation of the Bleechmore dykes the vermiculite potential of this area became apparent andFDL subsequently undertook a detailed evaluation of these dykes. This program comprised ground magnetic and gravity traverses, 2 hyperspectral TM traverses, a 135 hole vacuum bedrock drilling program, a 39 hole RAB/aircore drilling program totalling 1773 metres, a 2 hole diamond drilling program of 162 metres and excavation of 5 costeans over a total width of 441 metres. These investigations have led to definition of a significant vermiculite resource over an area of 400 by 50 metres to a depth of at least 42 metres. Vermiculite processing testwork was undertaken by Amdel and Palabora Mining Company. Further processing testwork and marketing studies of the Bleechmore vermiculite resource merit consideration. The Teck Cominco-BHP Billiton Alliance entered into a joint venture with FDL to evaluate the base metal potential of the project tenements. The exploration target was polymetallic metamorphosed massive sulphide deposits developed at or near the contact of major bimodal volcanic sequences and overlying sediments. During 2002 Alliance exploration activities comprised a review of previous exploration, 23 ground magnetic traverses, collection and analyses of 242 rock chip samples from 18 traverses together with geological observations. With the exception of known base metal occurrences the sampling did not define any base metal anomalies that warranted follow-up. In 2005 FDL sold the non-diamond rights in the project tenements to Maximus Resources Limited (MXR). MXR will undertake investigations of the base metal potential of the area in 2006 on substitution exploration licences SEL 25055 and SEL 25056 which replace EL 10364, EL 22443, EL 22446 and EL 22623.