tawana resouces nl -...

Tawana Resouces NL

TIMBER CREEK DIAMOND PROJECTSecond Annual Report EL10358 22 April 2003 to 23April 2004

S.A. Cooper, Orogenic Exploration Pty Ltd 5 May 2004W.T. Marx, Tawana Resources NL

Timber Creek EL10358 Second Annual Report: Page ii

CONTENTS

1. INTRODUCTION .......................................................................................................... 1

2. REGIONAL GEOLOGY ................................................................................................ 1

3. PREVIOUS DIAMOND EXPLORATION .................................................................... 3

4. PREVIOUS EL10358 DIAMOND EXPLORATION .................................................... 5

5. CURRENT PERIOD EL10358 EXPLORATION .......................................................... 55.1. Crushing ........................................................................................................... 65.2. HMS Treatment ............................................................................................... 65.3. Diamond Recovery .......................................................................................... 85.4. Rehabilitation ................................................................................................... 85.5. Exploration Heavy Mineral Samples ............................................................... 85.6. Employment of members of the local community ........................................... 9

6. EXPENDITURE SUMMARY ..................................................................................... 11

7. FUTURE WORK PROGRAM ..................................................................................... 11

8. REFERENCES ............................................................................................................. 11

FIGURES

1. Location map of Timber Creek EL10358 ..................................................................... 22. Kimberlite, Stockdale surface samples & diamond locations within EL10358 ........... 43. Primary crusher plant and HMS plant .......................................................................... 74. Sample TS04 and TS05 in top photograph, and in bottom picture sample TS06 ....... 10

TABLES

1. Kimberlite remaining on stockpile pad requiring primary crushing ............................. 62. Heavy mineral samples from EL10358 collected August 2003 ................................... 9

APPENDIX

1. Heavy Mineral Data Report samples TS01 to TS08 ................................................... 13

Timber Creek EL10358 Second Annual Report: Page 1

1. INTRODUCTION

The Timber Creek Project is located approximately 370 kilometers SSW of Darwin on theAuvergne (4966) 1:100,000 map sheet. The five known Timber Creek Kimberlites (TC01 toTC05) are sited approximately 10 kilometers south of the small township of Timber Creek(Figure 1). These kimberlites were discovered by De Beers during a sampling program overthis area between 1991 and 1993.

The Timber Creek project consists of Exploration Licence (EL10358) covering an area of 6.6square kilometers over the five known Timber Creek kimberlites. Tawana Resources NL hasnegotiated a purchase option agreement over tenement EL10358 with the holders StockdaleProspecting Limited. This EL, as well as approval to conduct mining operations on TC01, wasgranted on 22 April 2002 for a six (6) year period. Negotiations with the Aboriginallandowners and the Northern Land Council to conduct this bulk-sampling project weresuccessful and permission to commence work in this area was given on 17 May 2002.

2. REGIONAL GEOLOGY

The project area is within the early to mid Proterozoic Victoria River Basin (VRB) overlyingthe concealed North Australian Craton. The VRB consists of both marine and continentalsediments, with a maximum thickness of 3500 metres (Palfreyman, 1984) that has undergoneat least three periods of gentle folding and warping (Pontifex & Sweet, 1972).

Surrounding the known kimberlites are shallow dipping sediments of the Bullita Group (Fig2). This is composed of thinly bedded reddish brown dolomitic siltstones and fine sandstoneof the Timber Creek Formation (Sweet, 1972), grading up, and into, grey thin-beddeddolomite and dolomitic siltstone of the Skull Creek Formation (Pontifex & Sweet, 1972). TheBullita Group has formed low rounded hills, sometimes capped by overlying unconformablemassive quartz sandstone. This sandstone is the Jasper George Sandstone (Auvergne Group)which also caps the gently sloping plateau of the Newcastle Ranges to the northwest.

The only known igneous intrusions in the project area are the five known kimberlites. Allhave been classified by De Beers as highly altered hypabyssal facies kimberlites (Berrymanet al, 1998). Timber Creek 01 is the largest of these bodies and represents a small pipe on adyke. An 84t colluvium sample down-slope from Timber Creek 01 produced 1913 diamondstotaling 19.83ct from the -4.75mm fraction (Berryman et al, 1998). Over 100 diamonds,generally small (0.0016 to 0.0023ct) and predominantly brown to yellow in colour, have beenrecovered from surface loam sampling alone (Berryman, 1995). The age of intrusion is179±2Ma (middle Jurassic) based on the dating of recovered kimberlitic zircons (Belousovaet al, 2001).

Ground inspection by De Beers led to the discovery of a small kimberlite dyke, Timber Creek02. Later drilling intersected a thin extension of this dyke. No diamonds have been recoveredin this area.

Timber Creek 03 outcrops as a white silicified rock with vague relict igneous textures visibleon weathered surfaces (Berryman, 1995). Based on outcrop and chromite distribution fromsurface loam sampling, this kimberlite was considered relatively small by StockdaleProspecting Limited. No drilling was completed at the TC-03 site.


Figure 1. Location map of Timber Creek EL10358.

Timber Creek TC04 is a series of small en-echelon dykes, or a dyke swarm. The kimberliteoutcrops as a goethite-rich breccia and was intercepted in De Beers drill hole 93DH32 coreas a 75cm wide dyke and small stringer. One diamond from RAB drill hole 93DH01, andover twenty diamonds from surface loam sampling have been recovered in the TC-04 area(Berryman, 1995). The kimberlite samples were both highly silicified and ferruginised.


The final Timber Creek kimberlite, TC05, does not outcrop, but was intercepted by the singledrill hole 93DH33 as a series of thin dykes. No diamonds have been recovered in this area.

3. PREVIOUS DIAMOND EXPLORATION

The Victorian River Basin was subjected to a rush of diamond exploration during the earlynineteen eighties following the discovery and announcement of the diamondiferous Ellendaleand Aries Lamproites (at the time labeled kimberlites). During this period, the Timber Creekkimberlite area was covered by Anthion Pty Ltd, with Ashton Mining Limited adjacent to thesouthwest, Dampier Mining to the west and over Whirlwind Plains, and Gem Exploration andMinerals Ltd to the east.

Anthion Pty Ltd held Exploration Licence 2579 over 324 square kilometres south fromTimber Creek between June 1981 and June 1982. Within the licence, sixteen stream heavymineral samples were collected by helicopter, and sent to Perth for processing. No maps areavailable showing the sample locations, nor is the report by Mr R.W. Mosig who supervisedthe heavy mineral observation (Dale, 1982) available. Three separate samples across theLicence provided one almandine garnet grain each. This was considered anomalous, but nofurther work is recorded. As both the sample locations and heavy mineral summary data ismissing, it is conjecture wether the Timber Creek kimberlites were missed due to excessivesample spacing, poor sample collection, or problems in recovery or identification of therelevant kimberlitic indicator minerals.

During roughly the same period (March 1981 to February 1982), Ashton Mining Limited heldExploration Licence 2702 to the south west. Forty two heavy mineral samples were collected(total around 1.2 tonne) and sieved to -4mm on site. The 0.4-1.0mm fraction was observedand was negative for diamonds and diamond indicator minerals (Ashton Mining Limited,1982). Gem Exploration and Minerals Ltd, in joint venture with Northern Metals Pty Ltd,explored to the east under Exploration Licence 2580 during 1981 and 1982. A final total of132 heavy mineral samples consisting of 20kg of -4mm gravel were collected, following therecovery of one 0.5mm diamond in an initial sample. No associated kimberlitic indicatorminerals were identified.

Dampier Mining Company Limited (BHP) held Exploration Licences 2394, 2395, and 2396between 1 May 1980 to 7 August 1981on the west side adjacent to the Anthion Pty Ltdtenement. Over sixty stream and six loam heavy mineral samples, each around 20kg,together with two bulk samples (3.5m3 each of -4mm), were collected from the three Licences,but no diamonds or kimberlitic indicators were reported. Six drillholes testing four magneticanomalies were completed on Whirlwind Plains following completion of a 300 metre linespaced aeromagnetic survey. All holes terminated in Angalarri Siltstone (Dampier MiningCompany Limited, 1981). Later geophysical modelling by Stockdale Prospecting Limitedindicated these magnetic anomalies have a probable depth to source greater than 200 metres,and therefore were clearly not suitable as kimberlite targets.

Following the negative exploration results in the early eighties, no further diamondexploration was conducted within the region until Stockdale Prospecting Limited applied fora number of Exploration Licences in March 1987. During the first year, Stockdale collected82 heavy mineral stream samples each around 50 litres of -2mm sieved material within


Exploration Licence 5441. Sample BB0360 contained two chromites considered anomalous(Joyce, 1990). During this period a 380m3 alluvial bulk sample was also collected 53kilometres east northeast and upstream from Timber Creek, next to the Victoria River underExploration Licence 5443. This sample (T8063) recovered twenty one diamonds (largest0.427ct) totaling 1.3806ct.

Following the BB0360 chromites further upstream resulted in the discovery of the TimberCreek 01 kimberlite (TC01). A total of five kimberlites have been discovered by StockdaleProspecting Limited within the current EL10358 (Figure 2). During the six year life ofExploration Licence 5441, over 3000 heavy mineral samples have been collected alone, fromwithin a two kilometer radius from the known kimberlites by Stockdale Prospecting Limited(see Figure 2). Three drilling programs were also completed (Berryman, 1995) which confirmthe discoveries. A detailed aerial magnetic survey also flown by Stockdale failed to locatethe known kimberlites.

Figure 2. Kimberlite (red circles), Stockdale surface sample (squares) and diamond locations(yellow diamonds) within EL10358.

Stockdale Prospecting Limited also conducted diamond exploration over Whirlwind Plainsunder Exploration Licence 8261 during the same period. As well as re-testing the originalDampier Mining magnetic targets by shallow drilling, Stockdale also completed excavationsat 15 sites to test for diamondiferous gravels. From 3514 tonnes excavated, 24 diamondsweighing approximately 0.789 carats were recovered (0.72 to 12mm fraction, Berryman,1995b). The pits were in two traverses along tracks leading to Gregory Bore. NormandyPoseidon Limited later completed a line of RAB drillholes parallel with the main line of pits.Generally the gravel was around 10 metres thick or less, but one hole (P.12) penetrated over20.3 metres of gravel.. Normandy Poseidon Limited also conducted a bulk sample with twopits providing 1368 tonnes of excavated gravel material. This was processed at Bow River(W.A.) and provided 21 stones totalling 5.39 carats (screen sizes used are unknown).


Stockdale Prospecting Limited suspected that some of the diamonds were contamination fromthe Bow River treatment plant, based on inspection of the diamonds (Berryman, 1995b).Examination of the average diamond size between the two bulk sample programs does revealthat Stockdale had an average size of 0.033 ct/stone, as opposed to an average of 0.257ct/stone for Normandy Poseidon. This could be a function of screen sizes, but does mean thatdiamond grades based on Normandy Poseidon data are uncertain.

Early in 1993, Cambridge Gulf Exploration NL, was granted Exploration Licence 8118, whichfollows the Victoria River upstream as far as the Victoria Highway near Timber Creek. FromMay to August 1993, gravel alluvium was excavated and processed from a small area adjacentto the current Victoria River on Whirlwind Plains. In total 11,318 tonnes (minus 150mm) ofRecent gravel was processed by Rotary Pan, resulting in the recovery of 72 diamonds totaling6.5735ct (0.5 to 11mm range examined), including one 0.600ct stone (Graindorge, 1995).Unfortunately the sample locality was an Aboriginal Sacred Site and Cambridge Gulf wasconvicted and fined, and subsequently withdrew from the Victoria River area.

4. PREVIOUS EL10358 DIAMOND EXPLORATION

During the dry season of 2002 Tawana Resources NL excavated approximately 5000 tonnesof kimberlite and overburden from the TC01 kimberlite with the objective to obtain anaverage grade and price per carat for the diamonds from TC01. This material was screened(first at 40mm with a hydroscreen, and then at 10mm in the DMS trommel) with the minus10mm material processed through a Dense Media Separation (DMS) plant and the plus 10mmmaterial stockpiled for later crushing and DMS processing. The minus 1mm material was notprocessed and went straight to the tailings dam. The 1 to 10mm DMS plant lights werestockpiled.

The DMS heavy mineral concentrate was milled to remove the large amount of barite fromthe concentrate and then processed on grease tables and Ultra-Sort X-ray machines to recoverdiamonds. A total of 12844 diamonds weighing 660 carats were recovered (Bailey, 2003).

It was intended to crush and process the stockpiled plus 10mm material during the dry seasonof 2003 but due to the lack of sufficient water in the waterhole at the plant site, and the lackof suitable crushers available at the time this further processing was delayed until 2004.

5. CURRENT PERIOD EL10358 EXPLORATION

After an inspection of the site used for processing in 2002 (Dingo Springs Creek) in Febuary2004 it was decided to continue the processing of the stockpiled material as there wassufficient water for this purpose.

The program is to crush the stockpiled plus 40mm material to minus 40mm with a jawcrusher, and then to process this through a DMS plant. All the DMS trommel oversize (plus10mm) is to be reduced to minus 8mm with a secondary crusher and re-processed through theDMS plant. All the DMS concentrate is to be milled to reduced the amount of barite and ironoxide in the final concentrate. Diamond recovery is to be undertaken through a Tawanaowned Flowsort x-ray diamond recovery system in South Africa.


The objective of the program is to recover the diamonds from the stockpiled material and addthese diamonds to those recovered from the previous processing so that an accurate grade anddiamond value for the TC-01 kimberlite can be established.

5.1. Crushing

A trailer mounted 60cm jaw crusher (Figure 3) was hired from Premier Paving & SiteServices and transported from Perth to Timber Creek. In addition a 36cm Gyratory secondarycrusher was purchased and transported to site from Perth. A Caterpillar IT24 Loader/ToolCarrier was hired from Guerinoni’s Concrete in Kununurra to handle the kimberlite from andto the stockpiled pads.

BatchNunber

+40mm kimberlite from

hydrascreen

Oversize fromtrommel(+10mm)

TOTALOVERSIZE

(t) (t) (t)OB1 61.9 5.95 67.85OB2 unknown crushing not planned

1 33.15 13.85 47.002 120.25 26.4 146.653 319.45 62.45 381.904 180 27.85 207.855 111.95 24.7 136.656 234.4 235.2 469.67 291.5 60.7 352.28 Approx. 80.00

Total 1889.7Table 1. Kimberlite remaining on stockpile pad requiring primary crushing or rehabilitation(Bailey, 2003).

It was decided to crush Batches 3, 6 and 7 only as these were considered from the results ofthe previous work to be the most representative of the kimberlite, and contained the leastcountry rock material. Table 1 shows the quantity of material remaining in each of thestockpiles that could be crushed during the 2004 season (Bailey, 2003). The primary jawcrusher arrived on site late in February, commenced early March, and was all crushing wascompleted on the 3 April 2004. Many days early in March were lost due to wet weather. Theprimary crusher was used to crush to minus 40mm all the plus 40mm material from Batch6, then Bath 3, and then Batch 7.

5.2. HMS Treatment

The HMS plant was hired from Perth-based NTF Mineral Processing Pty Ltd (managed andoperated by ex De Beers Tim Fried and Neil Roberts). The plant arrived on the 7 April andtook approximately 1 week to set up water, milling plant, generator, and other infrastructure.The plant comprised 3 main components (shown in figure 3) comprising of a vibratingautomatic feed hopper with 6t capacity, this feeds by a variable speed conveyor belt into acombined scrubber and trommel fitted with 1mm bottom cut screen and 10mm upper cutscreen. The 1 to 10mm is then pumped into the HMS plant fitted with a 6 inch FeSi cycloneand rated up to 5t per hour under optimum feed conditions.


Figure 3. Primary crusher plant (top photo) and HMS plant (bottom photograph) lookingfrom hopper towards scrubber, then the cyclone under the sun shade.


The earthmoving contract to construct the tailings dams at Dingo Springs Creek was awardedto Kununurra based JSW Holdings Pty Ltd. This involved the stripping of the top 40cm oftopsoil and stockpiling this (together with any removed vegetation) for later stagerehabilitation.

DMS processing commenced on the 18 April 2004 with Batch 7. Crushed material from thestockpile pad was loaded into the plant hopper using the same front-end loader as the crushingplant. The first pass of Batch 7 was not complete by the end of this current reporting period.

Tracer tests were conducted on a daily basis in the HMS plant prior to initiating the productfeed from the scrubber. A range of different sized tracers (2, 5 and 8mm square) with varyingSG’s (range 2.7 to 3.5) was used for this purpose. The operating density of the FeSi slurrywas maintained between 2.6 and 2.7 in order to achieve a cut point density of approximately3.05. The concentrate yield is monitored for the duration of the project.

Records of all kimberlite processed are being recorded on a daily basis. This is done usingthe weightometer on the loader (to 50kg accuracy). The individual weights recorded included:weight of kimberlite into hopper, weight of oversize removed from scrubber and weight ofHMS lights. The concentrate weight was measured by decanting the water and thensuspending the concentrate bucket from a spring scale before pouring into the concentratedrum. These parameters enabled the quantity of slimes generated on a daily basis to becalculated. The final daily production statistics will be available next reporting period.

5.3. Diamond Recovery

No diamond recovery has as yet been conducted as this will take place after all the currentDMS processing has been completed. The DMS concentrates will be sealed in drums andshipped to South Africa and processed through the company owned Flowsort x-ray diamondrecovery system near Kimberly. The diamonds will be returned to Australia for valuation andfurther studies. No results were available at the time of writing as no DMS concentrate hadyet been shipped to South Africa for diamond recovery.

5.4. Rehabilitation

The plant site was rehabilitated after the 2002 processing. The slimes dams were backfilledto achieve an end result as close as possible to the original surface. Following backfilling ofthese dams, a layer of topsoil (which had been separately stockpiled) was spread to cover theentire area of disturbance. The stockpile area (which is merely an area cleared of vegetation)awaits rehabilitated after the 2004 processing Once a full interpretation of the availableresults has been undertaken, a decision will be made to either treat these remaining stockpilesor return them to the excavated site.

5.5. Exploration Heavy Mineral Samples

In August 2003, a total of eight heavy mineral samples were collected from four of the knownTimber Creek kimberlites to enable comparison of their mineral content. All samples wereone bag (around 12kg) of surface loam material (screened to minus 3.2mm), except for thethree TC01 samples which were actual kimberlitic rock (not screened). Details of the samplesare provided in Table 2, with the coordinates in AMG66 datum. Locations were determined


by hand held Garmin GPS in averaging mode. The samples were processed by DiamantinaLaboratories (Perth) using TBE, and then the concentrate was examined by an experiencedmineralogist from Dynamic Mineralogical Services (Perth). No crushing was done on therock samples.

SAMPLE TYPE mE mN LOCATION COMMENTSTS01 Loam 656099 8259079 Over TC05 area, 5m from

old wooden peg.Brown-reddish soil, flat area, someangular sandstone cobbles on surface

TS02 Loam 656609 8259102 Near TC03, on slope belowpossibly outcrop

Brownish red fine sandy soil,sandstone fragments common

TS03 Loam 656624 8259076 Near TC03, near old whitewood peg

Light reddish brown soil, cleared awaysandstone fragments, below TC03

TS04 Rock 657068 8258764 TC01 kimberlite pit, level 2,west side near kimberliteedge

Pale greenish fine grained kimberlite,some angular metased xenoliths

TS05 Rock 657068 8258760 TC01 kimberlite pit, level 2,WSW side near kimb edge.

Pale mauve, light brown soft very lightkimberlite

TS06 Rock 657089 8258765 TC01 kimberlite pit, SEside from possiblekimberlite dyke

Light brown massive, hard cementedkimberlite, not many xenoliths

TS07 Loam 658547 8259001 Over TC04 area, next to 3larger trees, flat area.

Light brown silty fine sandy soil.

TS08 Loam 658388 8259060 Over TC04 area, within flatarea partly disturbed bydozer.

Light brown silty fine sandy soil,sandstone fragments common aroundsite

Table 2. Heavy mineral samples from EL10358 collected August 2003

The three samples from TC01 were to provide diamonds to compare with those recoveredfrom the HMS plant milled concentrate. It was a concern that the milling process could bebreaking diamonds, lowering the average size, with some then be lost in the minus 1mmfraction. Thus we are interested in the amount of stone breakage naturally present. Heavymineral data sheets are provided in Appendix One. All three TC01 samples provideddiamonds and lots of chromite, confirming previous observations by De Beers. No otherkimberlite indicator minerals was recovered.

The samples from the other three kimberlite areas all provided different amounts ofkimberlitic chromite. Sample TS08 from the Timber Creek 04 area also provided one+0.4mm diamond. These results confirm those provided by Stockdale Prospecting underEL5441 (Berryman, 1995). Further study, including grain microprobing, is planned for thesesamples.

5.6. Employment of members of the local community

Whenever possible Tawana Resources NL will give any opportunities to assist to membersof the local Myatt community. Unfortunately the project activities completed during thisreporting period required specialised technical skills unable to be currently supplied by thelocal community.


Figure 4. Sample TS04 on right, and TS05 on left in top photograph, and in bottom picturesample TS06 from possible dyke, the siltstone-kimberlite contact is marked with pink paint.


6. EXPENDITURE SUMMARY

Listed below is the summary of the costs allocated to EL10358 for the period 1 May2003 to 30 April 2004 (nearest accounting period).

Geological Salaries $ 39,400Field Costs $ 11,717Sampling $ 10,824Title Administration $ 8,587Travel & Accommodation $ 3,112Analyses $ 2,948Sample Processing $169,844Equipment Hire $ 29,440Aboriginal Compensation $ 35,279Total $ 325,002

7. FUTURE WORK PROGRAM

It is also proposed to excavate a 100 tonne sample from a fissure (dyke) associated withTC01, which was discovered during work in 2003. The purpose of this sample is to establishwhether the fissure contains large diamonds, and if so what the likely quality of the diamondcould be.

The expenditure of this future work program is estimated to be over $100,000.

8. REFERENCES

Ashton Mining Limited, 1982. Final Report EL2702, 27 March 1981 to 4 February 1982.Unpub. Northern Territory Department of Mines & Energy Open-file ReportCR1982/0158.

Bailey, C., 2003. Annual Report EL10358, Timber Creek Diamond Project Year ending 21May 2003. Tawana Resources NL, Melbourne.

Belousova, E.A., Griffin, W.L., Shee, S.R., Jackson, S.E., & O’Reilly, S.Y., 2001. Two agepopulations of zircons from the Timber Creek kimberlites, Northern Territory, asdetermined by laser-ablation ICP-MS analysis. Australian Journal of Earth Sciences,48, 757-765.

Berryman, A.K., 1995. Exploration Licence 5441 Timber Creek Area Final Report. Unpub.report by Stockdale Prospecting Limited. Northern Territory Department of Mines &Energy Open-file Report CR1995/0668.

Berryman, A.K., 1995b. Exploration Licence 8261 Whirlwind Plains Area Final Report.Unpub. report by Stockdale Prospecting Limited. Northern Territory Department ofMines & Energy Open-file Report CR1995/0915.

Berryman, A.K., Stiefenhofer, J., Shee, S.R., Wyatt, B.A., & Belousova, E.A., 1998. Thediscovery and geology of the Timber Creek Kimberlites, Northern Territory, Australia.In Gurney et al (Eds.) Proceedings of the Seventh International Kimberlite ConferenceVolume 1, J.B. Dawson Volume, Red Roof Design, Cape Town.

Dale, G.R., 1982. Progress Report Northern Territory Diamond Exploration: Exploration


Licence 2572 and 2579. Unpub. Report by G.R. Dale & Associates for Anthion Pty Ltd.January. Northern Territory Department of Mines & Energy Open-file ReportCR1982/0345.

Dampier Mining Company Limited, 1981. EL2394, 2395, & 2396, Pinkerton Range, NT,Final Report. Unpub. Northern Territory Department of Mines & Energy Open-fileReport CR1981/0202.

Graindorge, J.M., 1995. Surrender Mineral Exploration Report Part EL8118 for the period12 may 1993 to 11 May 1995. Unpub. report by Cambridge Gulf Exploration NL,August 1995. Northern Territory Department of Mines & Energy Open-file ReportCR1995/0597.

Joyce, J., 1990. Annual Report on Exploration Licences 5441-5444, Newcastle Range,Delamere. Unpub. Report by Stockdale Prospecting Limited. September.

Palfreyman, W.D., 1984. Guide to the Geology of Australia. Bureau of Mineral Resources,Geology and geophysics, Australia. Bulletin 181.

Pontifex, I.R., & Sweet, I.P., 1972. 1:250,000 Geological Series - Explanatory Notes,Auvergne, Northern Territory. Bureau of Mineral Resources, Australia, Canberra

Sweet, I.P., 1972. 1:250,000 Geological Series - Explanatory Notes, Delamere, NorthernTerritory. Bureau of Mineral Resources, Australia, Canberra.


APPENDIX 1Heavy Mineral Data Report for samples TS01 to TS08

by Dynamic Mineralogical Services

DYNAMIC MINERALOGICAL SERVICES

Diamond Indicator Specialist

3 Scott Street, Willetton WA 6155 ♦ Mobile: 0407 986 670 ♦ Telephone/Facsimile: (08) 9457 1339 ABN: 89 961 296 610

report H A R D C O P Y

LABORATORY

REPORT

September 25, 2003

TS01-TS08

Sample Initial Weight (kg) TBE Weight (g) +2mm (g) Heavies (g) TS01 12.5 722.5 9.8 5.98 TS02 11.5 1498.8 2.7 7.1 TS03 12.5 956.3 0.9 2.59 TS04 10.0 2350.2 2308.2 2.68 TS05 9.0 2486.1 1281.1 79.15 TS06 11.0 2856.3 3106.3 2.66 TS07 11.5 739.8 13.6 12.15 TS08 12.5 1235.7 35.4 82.82

Positive: (Kimberlite Indicators) Sample: TS01

Positive: (Economic Minerals) Negative:

Comment: -2+0.3

Mineralogist/Observer: LHS/LHS Weight: 5.98 g Date Observed: 9/09/03 Time: 1.5 hr Notes/To Probe: Probe Sent on:

OBSERVED FRACTIONS KIMBERLITE/LAMPROIT

E INDICATORS +2 +1 +0.8 +0.5 +0.4 +0.3 +0.25 WEAR KIMB? FORM

DIAMOND

CHROME DIOPSIDE

CHROMITE 1 5 9 18 45 VF-F KIMB ANHEDRAL-SUBHEDRAL

PHLOGOPITE

PICROILMENITE

PYROPE

OLIVINE

DETAILED DESCRIPTIONS

MINERAL

LUSTRE (Primary Surface)

LUSTRE (Fresh Fracture)

OTHER

Chromite Metallic, submetallic,

Cokey, subvitreous,

Anhedral, highly irregular. Less often subhedral, distorted. Angular. Mostly rough uneven surfaces with fish scale and stepped textures. Thick cokey

silky sheen submetallic rims present. A few freshly broken. Red internal reflections observed. Traces of reddish clay in crevices.

ECONOMIC MINERALS (Wt. % of Initial Wt.) CASSITERITE CU-CARBONATES GOLD SCHEELITE MONAZITE

OTHER MINERALS (Vol. % after TBE; Trace 1-3 grains; Rare 4-30 grains) ALMANDINE TR GAHNITE SHELL TR AMPHIBOLE MUSCOVITE

ANDRADITE MAGNETITE R ANATASE TR PREHNITE

GROSSULAR PICOTITE ANDALUSITE QUARTZ <1%

SPESSARTINE PLEONASTE APATITE SILLIMANITE

UVAROVITE SPINEL BARITE SPHENE

BIOTITE STAUROLITE

CLINOPYROXENE HEMATITE R BROOKITE TOPAZ

DIOPSIDE ILMENITE CORUNDUM TOURMALINE <1%

OLIVINE LIMONITE 95% EPIDOTE XENOTIME

ORTHOPYROXENE PYRITE TR GORCEIXITE ZIRCON TR

PYRITE (Pseudo) KYANITE TR

PYROLUSITE LEUCOXENE TR

RUTILE MAGNESITE ROCK FRAGMENTS 5%



Comment: -2+0.3




DIAMOND

CHROME DIOPSIDE

CHROMITE 28 20 113 221 416 VF KIMB ANHEDRAL-SUBHEDRAL

PHLOGOPITE

PICROILMENITE

PYROPE

OLIVINE


MINERAL



OTHER


Submetallic, vitreous, cokey

Anhedral, highly irregular, or subhedral, highly distorted, rounded and/or flattened. Angular. Thick cokey rims observed. Most grains have fish scale

silky sheen, subvitreous

and stepped textures. Fine fractions are commonly broken fragments of magnetic, metallic, cokey rims (as hopper or tabular grains), and vitreous,

non-magnetic core with red internal reflections. Brownish rock attached to surfaces, sometimes loosely as fragile protrusions.


OTHER MINERALS (Vol. % after TBE; Trace 1-3 grains; Rare 4-30 grains) ALMANDINE GAHNITE GOETHITE TR AMPHIBOLE TR MUSCOVITE

ANDRADITE MAGNETITE R ANATASE PREHNITE

GROSSULAR PICOTITE ANDALUSITE TR QUARTZ R

SPESSARTINE PLEONASTE APATITE TR SILLIMANITE

UVAROVITE SPINEL BARITE TR SPHENE

BIOTITE STAUROLITE

CLINOPYROXENE HEMATITE 5% BROOKITE TOPAZ

DIOPSIDE ILMENITE CORUNDUM TOURMALINE R




PYROLUSITE LEUCOXENE TR




Comment: -2+0.3

Mineralogist/Observer: LHS/LHS Weight: 2.59 g Date Observed: 10/09/03 Time: 1 hr Notes/To Probe: Probe Sent on:



DIAMOND

CHROME DIOPSIDE

CHROMITE 1 1 6 16 VF-F KIMB ANHEDRAL

PHLOGOPITE

PICROILMENITE

PYROPE

OLIVINE


MINERAL



OTHER


Submetallic, subvitreous,

Anhedral, highly irregular. Angular to subangular. Rock adhesion and brownish clay in crevices. Most have fresh fracture. Fish scale, stepped

silky sheen hackly and/or pitted textures present. Thick cokey rims observed in some grains.


OTHER MINERALS (Vol. % after TBE; Trace 1-3 grains; Rare 4-30 grains) ALMANDINE TR GAHNITE GOETHITE TR AMPHIBOLE MUSCOVITE

ANDRADITE MAGNETITE R ANATASE PREHNITE

GROSSULAR PICOTITE ANDALUSITE QUARTZ R


UVAROVITE SPINEL BARITE R SPHENE

BIOTITE STAUROLITE

CLINOPYROXENE HEMATITE <1% BROOKITE TOPAZ

DIOPSIDE ILMENITE CORUNDUM TOURMALINE R


ORTHOPYROXENE PYRITE TR GORCEIXITE ZIRCON

PYRITE (Pseudo) TR KYANITE

PYROLUSITE LEUCOXENE

RUTILE TR MAGNESITE TR ROCK FRAGMENTS 95%



Comment: -2+0.3




DIAMOND 1 1 2 NONE DEF COMPLEX, OCTA, TRIGON

CHROME DIOPSIDE

CHROMITE 14 63 310 1095 4282 NONE KIMB ANHEDRAL-SUBHEDRAL

PHLOGOPITE

PICROILMENITE

PYROPE

OLIVINE


MINERAL



OTHER

Diamond Adamantine Adamantine 1+0.4 frosted planar trigon, colourless, clear. 1+0.3 frsoted planar octahedron, colourless, clear.

Remaining two grains are complex forms with evidence of dodecahedral faces; yellow-brown; included.

Chromite Dull, frosted, metallic,

Hackly, submetallic

Anhedral, highly irregular, angular, or subhedral, highly distorted, rounded, or flattened and tabular. Heavily rock matrix encrusted. Reddish internal

silky sheen reflections observed. Surfaces often have appearance of hematite. Platy surface textures, with rare grains displaying fish scale textures.


OTHER MINERALS (Vol. % after TBE; Trace 1-3 grains; Rare 4-30 grains) ALMANDINE R GAHNITE CARBONATE 5% AMPHIBOLE R MUSCOVITE

ANDRADITE MAGNETITE <1% CHROMITE 50% ANATASE TR PREHNITE

GROSSULAR PICOTITE CHALCOPYRITE R ANDALUSITE TR QUARTZ

SPESSARTINE PLEONASTE APATITE R SILLIMANITE


BIOTITE/chlorite TR STAUROLITE


DIOPSIDE ILMENITE CORUNDUM TOURMALINE

OLIVINE LIMONITE EPIDOTE TR XENOTIME



PYROLUSITE wad <1% LEUCOXENE

RUTILE TR MAGNESITE ROCK FRAGMENTS 40%



Comment: -2+0.3




DIAMOND 1 1 3 5 3 NONE DEF DODCAEHDRAL

CHROME DIOPSIDE


PHLOGOPITE

PICROILMENITE

PYROPE

OLIVINE


MINERAL



OTHER

Diamond Adamantine Adamantine Complex, distorted, irregular, with rounded tetrahexahedroid faces and primary fractures. Rock adhesions present. Yellow-brown.

Chromite Dull, frosted, metallic,

Hackly, submetallic,

Anhedral, highly irregular, angular or subhedral, distorted, flattened, tabular. Highly fractured and brittle with many grains very freshly broken.

Silky sheen subvitreous, cokey

Heavily encrusted, often as small slivers embedded in the rock matrix. Surfaces have brownish rind and/or iron stained. No visible wear.

Mica Metallic Pearly Rounded. Patches of translucent or opaque hematite replacement n the core. Small remnant translucent pale brown mica.


OTHER MINERALS (Vol. % after TBE; Trace 1-3 grains; Rare 4-30 grains) ALMANDINE R GAHNITE CARBONATE <1% AMPHIBOLE R MUSCOVITE

ANDRADITE MAGNETITE SHELL TR ANATASE PREHNITE

GROSSULAR PICOTITE CHALCOPYRITE TR ANDALUSITE QUARTZ



BIOTITE/MICA R STAUROLITE



OLIVINE LIMONITE EPIDOTE XENOTIME

ORTHOPYROXENE PYRITE GORCEIXITE ZIRCON TR

PYRITE (Pseudo) KYANITE

PYROLUSITE wad <1%

LEUCOXENE




Comment: -2+0.3




DIAMOND 1 1 2 5 NONE DEF DODECAHEDRAL

CHROME DIOPSIDE


PHLOGOPITE

PICROILMENITE

PYROPE

OLIVINE


MINERAL



OTHER

Diamond Adamantine Adamantine Highly irregular and complex, with dodecahedral faces. Some occur as slivers with primary fractures and some secondary chipping on the edges.

Yellow and green tints. Rock adhesions present.

Chromite Dull, frosted, silky sheen

Cokey, hackly, granular,

Anhedral, highly irregular or subhedral, highly distorted, flattened. Highly fractured, with many grains existing as slivers or showing extension cracks.

submetallic No visible wear. Very fresh factures where broken. Heavily encrusted and/or embedded in carbonate rock matrix. Rough pitted primary surfaces.

Mica Metallic - Rounded or irregular. Hematite replaced.


OTHER MINERALS (Vol. % after TBE; Trace 1-3 grains; Rare 4-30 grains) ALMANDINE R GAHNITE CHROMITE 30% AMPHIBOLE 20% MUSCOVITE

ANDRADITE MAGNETITE CHALCOPYRITE R ANATASE PREHNITE

GROSSULAR PICOTITE SHELL TR ANDALUSITE QUARTZ R

SPESSARTINE PLEONASTE CARBONATE <1% APATITE TR SILLIMANITE

UVAROVITE SPINEL BARITE <1% SPHENE

BIOTITE/mica R STAUROLITE

CLINOPYROXENE HEMATITE R BROOKITE TOPAZ


OLIVINE LIMONITE EPIDOTE XENOTIME

ORTHOPYROXENE PYRITE 20% GORCEIXITE ZIRCON TR

PYRITE (Pseudo) R KYANITE

PYROLUSITE wad <1% LEUCOXENE




Comment: -2+0.3




DIAMOND

CHROME DIOPSIDE

CHROMITE 1 16 F-FW KIMB ANHEDRAL-SUBHEDRAL

PHLOGOPITE

PICROILMENITE

PYROPE

OLIVINE


MINERAL



OTHER

Chromite Dull, frosted, cokey

Submetallic, cokey

Anhedral, highly irregular, subrounded cokey grains or subhedral, distorted, flattened. Fine fish scale texture observed. Subangular fractures, some

slightly dull, with weak edge abrasions. Brownish-red surfaces. Opaque reddish inclusions.


OTHER MINERALS (Vol. % after TBE; Trace 1-3 grains; Rare 4-30 grains) ALMANDINE GAHNITE AMPHIBOLE TR MUSCOVITE

ANDRADITE MAGNETITE ANATASE PREHNITE

GROSSULAR PICOTITE ANDALUSITE QUARTZ <1%



BIOTITE STAUROLITE


DIOPSIDE ILMENITE CORUNDUM TOURMALINE <1%


ORTHOPYROXENE PYRITE GORCEIXITE ZIRCON


PYROLUSITE LEUCOXENE R




Comment: -2+0.3




DIAMOND 1 VF DEF DODECAHEDRAL

CHROME DIOPSIDE

CHROMITE 1 1 6 49 F-FW KIMB ANHEDRAL-SUBHEDRAL

PHLOGOPITE

PICROILMENITE

PYROPE

OLIVINE


MINERAL



OTHER

Diamond Adamantine Adamantine Tabular, with dodecahedral faces and primary fracture. Some edge chipping. Clear. Weak green tint. Rock adhesions present.

Chromite Dull, frosted, silky sheen

Cokey, hackly, submetallic

Anhedral, irregular or subhedral, distorted, often flattened and tabular. Subtle fish scale and silky sheen. Mostly subangular, with cokey grains

tending to be subrounded. Traces of brownish clay and rock adhesion. Some grains have slightly dull multiple fractures with weak edge abrasions.


TR

OTHER MINERALS (Vol. % after TBE; Trace 1-3 grains; Rare 4-30 grains) ALMANDINE TR GAHNITE SHELL TR AMPHIBOLE MUSCOVITE

ANDRADITE MAGNETITE ANATASE TR PREHNITE

GROSSULAR PICOTITE ANDALUSITE QUARTZ R



BIOTITE STAUROLITE


DIOPSIDE ILMENITE TR CORUNDUM TOURMALINE R


ORTHOPYROXENE PYRITE GORCEIXITE ZIRCON

PYRITE (Pseudo) KYANITE

PYROLUSITE wad R LEUCOXENE TR

RUTILE TR MAGNESITE ROCK FRAGMENTS 40%

tawana resouces nl -...

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