Annual exploration report Year 1 SEL 26944, 30 April 2009 to 29 April 2010

Abstract

This report details exploration activity carried out by North Australian Diamonds Limited (NADL) over exploration licence SEL 26944 for the period 30 April 2009 to 29 April 2010. This period represents Year One 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 has been subjected to mineral exploration since the 1960's when the Carpentaria Exploration Company explored for base metals. Historic diamond exploration including airborne geophysics and ground exploration was undertaken by CRA during the 1980's and Ashton Mining during the 1990's. In April 2009, North Australian Diamonds submitted a proposal to the Northern Territory Government Geophysical and Drilling Collaboration for assistance funding for a diamond core drill program. The program comprised a single vertical diamond drill-hole (LV09-001) centred on the Leviathan Anomaly. The drill hole did not intersect the source rock for the Leviathan anomaly. Hence it can only be concluded that the source is either deeper or that it was missed.