Annual exploration report Year 2 SEL 26944 30 April 2010 to 29 April 2011

Abstract

This report details exploration activity carried out by North Australian Diamonds Limited over exploration licence SEL 26944 for the period 30 April 2010 to 29 April 2011. This period represents Year Two of the licence. The exploration licence is located on the Bauhinia Downs 1:250,000 map sheet and the Glyde 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 2010 a small indicator mineral sampling program was conducted to follow-up positive results from previous indicator mineral samples on the northern side of the Merlin Access Road. Sampling was also undertaken at two sites to test the use of the Pleitz Jig as a pre-concentrate step prior to the dispatch of samples for further laboratory analysis. Four loam and one stream gravel samples were collected in total. Two samples were collected from the Emu 2 kimberlite pipe. These samples are currently awaiting processing for recovery of diamonds.