Annual exploration report Year 12 MLN 1154 Merlin 14 June 2009 to 13 June 2010

Abstract

This report details exploration and evaluation activities carried out by North Australian Diamonds Limited (NADL) over MLN 1154 for the period 14 June 2009 to 13 June 2010. NADL acquired 100% of MLN 1154 in November 2004 from Rio Tinto. The tenement is held under Merlin Diamonds Pty Ltd, which is a 100% wholly owned subsidiary company of NADL. Activities completed during the reporting period included a geotechnical drilling program at Palsac, Bedevere and Launfal as well as an exploration drilling program at Tailing's Dam and Bedevere. Down-hole spoil geochemical samples were collected from Bedevere and indicator minerals from Tailing's Dam. Plant Spillage samples were collected at Merlin. A ground EM survey was conducted over Excalibur South and Perceval. COMEX test work was also conducted over the Merlin Mine and samples were sent to COMEX in Norway for pyrite/diamond testwork.