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The Edward Creek Diamond Project is exciting because:
Such a discovery would substantially increase the value of the Project and is likely to have a significant effect on the value of the Company. To view some of our kimberlite targets:
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The Edward Creek Diamond Project is located 750 km NNW from Adelaide in South Australia. It is located on the Gawler craton. The Project area is secured by ELs 3250, 2755 & 2892 (all 100% RLC) which cover an area of 2,935 square kilometres. RLC has identified a number of large kimberlite targets which it intends drilling. RLC has held title to the Edward Creek Project since 1988. During this period it has conducted exploration in its own right and through various prior joint ventures with companies including: Mt Gipps Ltd (now Zeolite Australia Ltd), CRA Exploration Pty Ltd, Caldera Resources N.L. and Werrie Gold Ltd. In 1894 a one carat diamond (the Algebuckina diamond) was recovered from a site located about 35 kilometres north from EL 3250 by alluvial gold miners in the Peake Creek. Nine macro-diamonds have been recovered from the Edward Creek Project area:- eight by Stockdale Prospecting Limited in 1985 and one during RLC's tenure.
The Gawler Craton meets the general regional age and stability criteria for economic diamond pipes. The oldest rocks forming the craton are the Sleaford and Mulgathing complexes with ages of between 2300 million and 2600 million years old. The craton has not been substantially deformed or remobilized in the last 1,450 million years. Regional geological criteria often considered necessary for diamondiferous kimberlite occurrence include ancient cratons (typically at least 2,500 Ma) or cratonised provinces older than 1,800 million years. All kimberlites located on or near the Gawler Craton dated so far are Jurassic in age. At Edward Creek, the presence of younger cover rocks, including Jurassic, is an indication that vertical erosion of Jurassic aged rocks has been limited. Therefore kimberlites of Jurassic age at Edward Creek will be relatively uneroded and as a consequence preserved. This is an important contrast with other cratonic regions of Australia that currently attract diamond explorers (notably the Yilgarn, Pilbara, Kimberley and North Australian cratons) where substantial vertical erosion is thought to have occurred, which may have eroded and removed substantial sections of kimberlite pipes.
There are strong indications of the presence of kimberlite(s) - rocks which have the potential to contain diamonds in economic quantities:
And the recovery of nine macro diamonds (> 0.5 mm) is a strong indication that such kimberlite(s) are diamond sources. Edward Creek has abundant
kimberlitic grains which have been dispersed from a kimberlite - a potential
source of diamonds. Abundant picroilmenite (more than 5,000 grains recovered) in the area is a strong
indication that kimberlite is present. Chrome spinel grains recovered from
the area have chemical compositions similar to compositions of chrome spinel which
formed under the same pressure and temperature conditions under which diamond
forms. The recovery of 9 macro diamonds from the Project area also indicates
a diamond source.
Many of the DIM grains recovered have surface textures indicating small travel distances and therefore a nearby source.
Several circular features evident in aerial photographs, some with weak coincident magnetic anomalies, are identified as possibly caused by kimberlites. A selection of these are targeted for drilling. The targets are large by Australian standards, up to 1000 metres in diameter. Some of these drill targets are located less than 6 km from where the diamonds and abundant kimberlitic indicator grains have been found.
The Gauntlet measures 1,000 metres in diameter. It is a prominent circular photo feature and has an associated magnetic anomaly. A lime-rich marker bed forms a rim to the feature which is clearly visible in aerial photographs, giving the anomaly a distinctive crater-like appearance. The marker bed has been intersected over the 33 - 34 m depth interval in the centre of the anomaly. Slumping caused by compaction of the underlying material is likely to have created the observed anomaly. These observed features are consistent with those that could form as a result of a large diameter kimberlite buried beneath sediments at the Gauntlet. Drilling at the Gauntlet has reached a depth of 326 m (drillhole G7) and intersected an anomalous sequence of unconsolidated carbonaceous material which contains chrome spinel grains. Several of these chrome spinel grains have high chrome (60 - 69 wt% Cr2O3), low titanium (<0.5 wt% TiO2) and high magnesium (10 - 15 wt% MgO) which is an indication that their source has sampled potentially diamondiferous mantle. The Gauntlet is interpreted
to be the surface expression of a buried crater overlying a large kimberlite.
The carbonaceous material may be either weathered kimberlite or sediments deposited
in a crater formed due to slumping resulting from subsidence following the eruption
of a kimberlite.
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In central and southern African occurrences of kimberlite, sedimentary basins extend in some cases to depths of over 300 metres below the present land surface. Reedy Lagoon has intersected 213 m of anomalous material which may be similar crater fill sediments. If this material is derived from a kimberlite, the chemistry of chrome spinel grains in it suggests that such a kimberlite is likely to contain diamonds. The Gauntlet Anomaly may be the surface expression of a buried, well preserved large (50 ha) kimberlite and will be drill tested as soon as adequate funding is sourced.
Several other sites with geological features similar to those shown by the Gauntlet are identified within EL 3250. Kimberlites generally occur in clusters. Once one has been identified discoveries of additional pipes normally follow. To view images of some of RLC's kimberlite targets:
WK57 is a semi-circular photo feature
1,500 metres in diameter. It is less than 5 kilometres from the Gauntlet and appears to be similar,
but is partly obscured or eroded. Stream sediment samples have recovered picroilmenite and pyrope garnet from
the immediate surrounds of WK57.
WK57 was one of the targets drilled in December 2003.
The
Edward Creek Project holds potential to contain a kimberlite province containing
large-diameter kimberlite pipes in an "on-craton" environment where diamonds are
associated with kimberlitic grains. Drilling planned over the next twelve months
will test this potential.
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17 October, 2004