Annual report Year 7 EL 10189, 23 July 2008 to 22 July 2009

Abstract

This annual report outlines exploration activities undertaken by North Australian Diamonds Limited on EL 10189 between the 23rd July 2008 and the 22nd July 2009. This period represents year six of the licence. EL 10189 is situated on the Bauhinia Downs (SE53-03), Walhallow (SE53-07) and Calvert Hills (SE53-08) 1:250,000 mapsheets, and the Glyde, Lancewood and Surprise 1:100,000 topographic mapsheets in the Batten Region of the Northern Territory. It is located around 100 kilometres south of Borroloola and is accessed via existing unsealed tracks leading east from the Merlin Mine or north from Kiana Station. Diamond exploration during the current reporting period included soil geochemical sampling, loam sampling, ground magnetic and ground electromagnetic surveying. The MAG03T anomaly was downgraded following the electromagnetic survey, however remains of interest due to the associated magnetic anomaly and diamonds recovered inloam samples and the kimberlitic chromites recovered in drainages emanating from the plateau that hosts the MAG03T anomaly. On 18th September 2007 NADL granted Top End Uranium Limited (TEUL) the right of access to the land covered by the licence for the purpose of exploring for, mining and processing minerals other than diamonds. A desktop study completed by Jigsaw Geoscience in April 2008 identified four priority targets for potential uranium mineralization. The four targets identified by Jigsaw Geoscience as prospective for potential uranium mineralisation were field inspected by TEUL consulting geologist. The field activities were helicopter supported from Merlin Diamond Mine. A report from the consulting geologist on the findings of the investigation has not yet been received. An Application for Exploration Licence Renewal was submitted to DPIFM. The licence renewal for a two year period was subsequently granted to Merlin Diamonds Pty Ltd on 31st July 2008. A total of $128,020 was expended against a covenant of $220,000.