EL 7970 Cox Project Final report for the period 23 July 2000 to 22 July 2010

Abstract

This final report collates exploration activities conducted over the tenement EL 7970 from the grant date 23 July 2000 to the expiry of 10 years term on 23 July 2010. The Legend International Holdings held and managed this title for last one year (2009-2010) of its tenure. During this time it was a part of Cox Project. However, its pre-2009 ownership/management history is complex. Gravity Diamonds Ltd on behalf of Diamond Mines Australia conducted all of the diamond exploration work on the tenement. At that time, the EL was part of Arnold River tenements and one of the members in the Hodgson Diamonds Project. A review of the historic data was carried out during 2001-2002 which indicated that there are unresolved chromite and diamond occurrences in an area of Bukalara Sandstone on EL 7970. The surface sampling had identified macrodiamonds, microdiamonds and other indicator minerals occurrences and clusters. On this basis, a Falcon airborne gravity gradiometer survey was completed over prospective areas within EL 7970 and adjacent tenements to the east during 2003-2004. Interpretation and generation of exploration targets from the Falcon data was completed in late 2004, with 12 target areas defined for follow-up work. Helicopter supported program to field test the targets was under taken in late 2005. Eleven target areas were field inspected and sampled where appropriate. A total of 4 gravel samples and 3 loam samples were collected within EL 7970. Field inspection downgraded the kimberlite potential for number of the Falcon targets although some anomalies required further assessment. Two of collected samples yielded chromite while another sample reported macrodiamond. Interpretation of microprobe data from the recovered indicator minerals indicated that some of the recovered grains are of probable kimberlitic origin. During 2006-2007, the positive sample results were followed-up in order to gain a better understanding of the overall indicator mineral distribution within the tenement. A total of 16 gravel samples and 1 loam sample were collected. Of the 17 samples collected, 13 yielded chromite, with one of the chromite samples also reported macrodiamond. In contrast to the historic sampling results, the fairly consistent recovery of chromites within the EL 7970 encouraged to complete tenement-wide regional sampling program. A further 30 gravel samples and 7 loam samples were collected during July-October 2007 from Cox022 and Cox02 targets drainage areas. Of the 37 samples collected, 16 reported chromite, with one of chromite positive samples also yielded macrodiamond. These results were continued to be at odd with the historic data and strongly suggested presence of series of kimberlite intrusions in the area. During the year 2008-2009, a detail assessment of last 8 years of exploration work was carried out with the intention of following-up encouraging results with the initial round of drilling. However, the changing global financial situation resulted in curtailing of all exploration activities and sale of EL to the Legend International Holdings in 2009. After acquiring the EL, Legend carried out helicopter supported reconnaissance survey to access ground conditions, collation and assessment of last 9 years of exploration data and target generation.