Annual Report - Year 6 EL 25676, 23 August 2012 to 22 August 2013

Abstract

This annual report outlines exploration activities undertaken by Merlin Diamonds Limited (MDL) on EL 25676 between the 23 August 2012 and 22 August 2013. This period represents Year Six of the Licence. On 18th September 2007 MDL 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 MDL and TEUL. Exploration Licence 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 collection of 91 costeaning samples which were sent for HMA processing at the company laboratory in Perth. The results returned 30 positive samples with a total of 4 diamonds and 111 chromite grains. The Company is highly encouraged by these results.