In summary....Ealbara (100% GRN) - Gawler Craton, South...

In summary....

Ealbara (100% GRN) - Gawler Craton, South Australia

Analysis of the new Falcon™ gravity data, together with other geophysical data, has identified 12 high quality exploration targets. Native Title and other issues will postpone access to some of the targets but Gravity plans to drill three of the most highly ranked prospects in this current drilling program.

An RC drilling program of approximately 2,000 metres is planned to test the Ealbara, Ella and Wiltabbie targets. Figure 1 shows the location of these targets. Drilling will take place to investigate distinct gravity "highs" offset from significant magnetic anomalies. Drilling is expected to take two weeks and first assay results should be available by mid-July.

Broken Hill

Avondale 1 (Sipa-Golden Cross Joint Venture)

The drilling program is expected to take approximately one week with the results of the assays to be available mid-July

Previous drilling indicated that this target is a zoned ultramafic body with strongly anomalous copper, elevated nickel values and weakly anomalous gold and silver. Petrographic analysis of drill chip material suggested the potential for platinum and palladium mineralisation

Two previously drilled fences of holes have hit anomalous rocks but not the source of the gravity high. The consistency of the low order mineralisation over 1,000 metres, the nature of the host rock package and the absence of an explanation for the major gravity anomaly suggest that the potential still exists for a Broken Hill size target.

Ellendale JV (50/50 JV with Kimberley Diamond Company, KDC managing)

KDC has advised Diamond Mines Australia Pty Ltd ("DMA") that the significant drilling and bulk sampling program designed to follow-up on the initial exciting exploration work is being delayed due to the highly unseasonal rains which are preventing access to the exploration areas. Once the black-soil cover terrain dries out, the exploration program will recommence on the JV ground near the Ellendale diamond mine operations

The Falcon™ survey carried out in late 2003 produced targets which were drilled and subsequently led to the discovery of two pipes and gravels. In February 2004, KDC advised DMA of the results of the microdiamond and heavy mineral sampling of both lamproite pipes and the gravels (see Gravity's ASX release 9 February 2004).
The results proved conclusively that the pipes originate from within the diamond stability field of the earth's mantle and therefore have the potential to contain commercial diamonds.