Annual Report - Year 5 EL 25676, 22 August 2011 to 21 August 2012

Abstract

This annual report outlines exploration activities undertaken by North Australian Diamonds Limited (NADL) on EL 25676 between the 23rd August 2011 and 22ndAugust 2012. This period represents Year Five of the licence. On 18th September 2007 NADL granted Top End Uranium Limited (TEUL) the right of access to the land covered by EL 25676 for the purpose of exploring for, mining and processing minerals other than diamonds. This report includes work undertaken by both NADL and TEUL. EL 25676 is situated on the Walhallow (SE53-07) 1:250,000 geological mapsheet and the Lancewood (6163) 1:100,000 topographic mapsheet in the Northern Territory. It is located around 120 kilometres south of Borroloola and is accessed via existing unsealed tracks leading from Kiana Station. Previous exploration has included an extensive search by various companies for kimberlites that has recovered significant numbers of chromites and diamonds in loam samples. Field work during the reporting period included the collection and processing of 16 loam samples and 2 stream gravel samples. Several samples reported positive results for chromites. A desktop study on the geomorphic evolution of the project area and wider McArthur River region was initiated to gain a better understanding of the distribution and potential source of the abundant indicator minerals within the tenement. A detailed field geological mapping exercise was also undertaken to provide input to the desktop study and also plan for a proposed costeaning program. The field mapping and desktop study concluded that the indicator minerals are likely to be derived from a local source rather than a distal source such as Merlin Kimberlite Field located 40km downstream to the north.