Annual Report Year 7 EL 26944 Merlin Orbit Project for the period 30 April 2015 to 29 April 2016

Abstract

This Annual Report details exploration activity carried out by Merlin Diamonds Limited (MDL) over EL 26944 for the period 30th April 2015 to 29th April 2016. This period represents Year Seven 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 road from the Carpentaria Highway to the Merlin Diamond Mine - the turn-off for this road 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. On-ground exploration activity was not undertaken during the reporting period as Company resources were directed towards research and development of a prospective alternate mining technique to be utilised on the small but high-grade Merlin Kimberlite Pipes.