EXPLORATION
Western Australia
The Argyle Dykes project is located west of and adjacent to the world class Argyle diamond mine and comprises seven (7) contiguous exploration licences and three (3) prospecting leases. This area is highly prospective for alluvial and hard rock diamonds as lamproite occurrences have been identified and economic grade diamonds were found in previous bulk testing.
The project is considered to be located on the same structure which controlled emplacement of the adjacent Argyle diamond mine. Further work will be carried out to ascertain the controls on and the boundaries of the lamproites. Low areas with recent cover will also be tested for potential pipes. Soil geochemical anomalies to the south will also be followed up.
The Ellendale Project consists of one (1) exploration licence covering an area of 59 square kilometres located approximately eight (8) kilometres south east of the diamondiferous Ellendale lamproite pipe cluster currently being mined by Kimberley Diamond Company N.L. (“KDC”). KDC is producing from Pipe 9 and has approval to mine Pipe 4 and Pipe 4 Satellite which between them have a resource of 90.4 million tonnes @ 6.2 carats per hundred tonnes for 5.61 million carats.
The main controlling structural features of the Ellendale Field are parallel to the northwest trending Oscar Range Fault and the project area covers a significant strike of this tectonically prospective area. Examination of open file reports in the area shows that previous base metal explorers completed a ground gravity survey over the present tenement area. Several discreet gravity lows resulting from this work are located within the tenement. These are considered to be prime drill targets. Another discreet low to the northwest coincides with a mapped pipe within the KDC tenements.
Heritage impact assessments are currently being carried out prior to on-ground exploration activities taking place.
The Cabbage Creek Project area consists of one (1) exploration license covering 33.6 square kilometres. Certain aspects of the geology have similarities to the structural pattern at the Argyle diamond mine. Numerous chrome spinel grains have been recovered from local creeks by previous explorers and the area appears to be prospective for lamproite source rocks. Further assessment of the prospect will be carried out in the following quarter.
The Bow River Project is situated in close proximity to the Bow River alluvial diamond mine and is some 25 kilometres northeast of the Argyle lamproite pipe. It consists of two (2) granted exploration licenses, with another one pending. The three licenses total 140 square kilometres. Further assessment of previous exploration activities will be carried out during the quarter.