Annual exploration report year 3 exploration licence 24192 7th December 2006 to 7th December 2007

Abstract

This report details exploration activity carried out by North Australian Diamonds Limited (NADL) over Exploration Licence EL 24192 for the period 7th December 2006 to 7th December 2007. This period represents year three of the licence. The exploration licence is located on the Bauhinia Downs (SE53-03) 1:250,000 map sheet and the Glyde (6164) 1:100,000 sheet. Access to the licence is via a 64 kilometre formed gravel access track from the Carpentaria Highway to the Merlin Diamond Mine, the turn-off is approximately 6 kilometres south-west of the McArthur River Mine turn-off. The licence surrounds the Merlin Mine and is accessed via numerous minor vehicle tracks. The licence has been subjected to intense diamond exploration including airborne geophysical surveys, ground follow-up geophysical surveys, seismic surveys, loam, stream, bulk gravel, and soil sampling. Since acquiring the licence from Rio Tinto during year one of the licence NADL has completed one drill hole, collected three loam and five stream gravel samples and fifty soil samples as follow-up to previously identified indicator and geophysical anomalies. During the current reporting period NADL reviewed the uranium and base metal potential of the licence and undertook geological mapping and ground investigations of the year two geophysical/chromite anomaly and ground reconnaissance prior to extension of a loam grid from adjoining licence ML1154. SEM probing of recovered chromites was also completed that indicated the chromites are possibly of kimberlitic origin.