Diamond Miners, page-5

Stocko,

You also need to include GUN in your list. Currently, they are exploring the Shell Lakes region in WA, in association with De Beers.

According to ASX releases, the Shell Lakes prospect "is strategically located on a pronounced bend in the major
continental scale Mundrabilla Fault, which passes through the Argyle diamond mine and WMC's West Musgrave nickel prospect".

Shell Lakes has indicated the presence of "several clusters of pipe like intrusive bodies" at shallow depths, with "(l)oam geochemical sampling....reveal(ing)favourable diamond indicator minerals, including chromian spinels and picroilmenite".

De Beers agreement with GUN is for a "51% interest in any diamonds contained within the Project" in return for $2.5m worth of exploration effort through to 9 April 2005.

Ultimately, GUN's interest can be diluted to a free-carried 10% in the event of De Beers moving to establish a mining presence, and GUN not contributing its funding share.

According to its 30 May ASX release, "a detailed low
altitude aeromagnetic survey of 18 reconnaissance magnetic anomalies .... commence(d....in early June)" with:
1)
results expected during June (mid+);
2)
drilling of "selected magnetic targets" to follow; and
3)
a detailed drilling programme during Q3, "subject to the completion of aboriginal heritage clearances and the grant of exploration title".

Also supported by Rabbitoh, according to some recent postings on 6 June 2002.

For a summary of recent exploration activity, see my posting of 16 May.