EL 22297, EL 23771, EL 23772, EL 25859, EL 26514, EL 26515 and EL 7970 Cox Project Combined annual report for the period 5 August 2009 to 4 August 2010

Abstract

This group report describes exploration activities conducted over tenements EL 22297, EL 23771, EL 23772, EL 25859, EL 26514, EL 26515 and EL 7970 during 5 August 2009 to 4 August 2010. Tenements EL 22297, EL 23771, EL 23772, EL 25859, EL 26514, EL 26515 and EL 7970 are part of Legend's Abner Project and approved by the NT Government for Group Technical Reporting (CR-39 dr). During the reporting period, field based activities included reconnaissance survey of some of tenements but majority of the work included collating and assessment of open file data and target generation. The acquisition of Gravity Capital Limited ('Gravity Diamonds') tenements in 2009 instigated a comprehensive data compilation exercise during which data received from Gravity Diamonds was incorporated into Legend's database. The aim was to prioritize current targets and generating new exploration targets for the forthcoming field season. Delays in finalizing the sales contract with Gravity Diamonds and the joint venture owner, Rio Tinto Pty Ltd ('Rio Tinto') resulted in significant cut down of planned fieldwork on tenements EL 7970, EL 23771, EL 23772, and EL 25859 prior the onset of 2009 rainy season. Furthermore, a prolonged wet season over 2009/2010 did not allow for ground access until July. Nevertheless, several helicopter reconnaissance trips were conducted to the southern part of the Project. The EL 22279 and EL 7970 are two tenements among the Cox Project, which are on advance stages of exploration. Work program on these tenements focused on their diamond prospectivity. On EL 22297, a helicopter assisted sampling program was conducted. Subsequently, followed-up sampling was carried out once laboratory results were received and land access was possible. Work planned on EL 7970 is the continuation of existing program structured by the Gravity Diamonds. This includes a ground gravity survey and possible drilling over two discrete heavy mineral anomaly targets. Several helicopter reconnaissance trips to the tenement were carried out to ascertain accessibility. It was concluded that the ground is unapproachable by land and major repair will be required to restore the track that was previously established by Gravity Diamonds during 2007 field season. The tenement was also in its tenth year of tenure and discussions with the NT Department of Regional Development, Primary Industry, Fisheries and Resources ('Department') were instigated to allow continued management of EL 7970.