Annual Report Year 5 EL 26944 30 April 2013 to 29 April 2014

Abstract

This Annual Report details exploration activity carried out by Merlin Diamonds Limited (MDL) over EL 26944 for the period 30th April 2013 to 29th April 2014. This period represents Year Five of the Licence. The Exploration Licence is located on the Bauhinia Downs (SE53-03) 1:250,000 map sheet and the Glyde (6164) 1:100,000 map 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. During the current reporting period 42 heavy mineral samples were processed for recovery of kimberlitic indicator minerals and diamonds. Several positive results including a +0.8mm white octahedral diamond were reported which will be followed up next year. A ground gravity survey was completed over the Leviathan magnetic target. Data will require interpretation by a geophysical consultant. A ground electromagnetic survey was completed over a historic ground gravity target, which did not show a coincident response thereby downgrading the target.