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Blina is an extremely active diamond explorer with interests in tenements covering 1750sq km located in the West Kimberley region of Western Australia. The company is undertaking a range of advanced and regional exploration programs in close proximity to two operating diamond mines run by Kimberley Diamond Company (KDC) in the Ellendale Field.

Blina's exploration projects include three advanced alluvial operations at Terrace 5, Ellendale 9 North and J Channel, plus on-going regional programs following-up several recently completed airborne geophysical surveys. The objective of the regional work is a complete re-evaluation of the Ellendale Field. This is expected to lead to the identification of new diamondiferous lamproites and alluvial deposits. An early success for the program had come with the recent discovery of the Ellendale 9 North alluvial deposit.

Blina's technical staff has 12 years successful exploration in the Ellendale area and have the proven geological experience and technical know-how to locate and evaluate diamond deposits. Equally important as experience, the company has established camp, mineral processing and laboratory facilities that provide the support needed to undertake a thorough and comprehensive diamond exploration program.

The Terrace 5 Project

Terrace 5 is the name applied to one of a number of palaeo-channel systems identified on the western side of the Ellendale Lamproite Field. These palaeo-channels are of varying ages and are widely distributed. The gravels preserved in what is defined as the Terrace 5 palaeo-channel are unique in this section of the field in that they carry significant concentrations of relatively large diamonds. Gravels from other palaeo-channels that have been sampled are either barren or contain only traces of small diamonds. While the diamonds have certainly travelled westwards from the ridge that encompasses the Ellendale Lamproite Field, the actual primary source rock has not yet been identified.

Blina believes that this advanced project has the potential to become a significant diamond producer within a relatively short space of time and the company is planning a major evaluation programme for the area. This palaeo-channel is the most extensive of the ancient buried river systems identified in the Ellendale Area. Gravels of the Terrace 5 system crop-out along the 67 Mile Creek Road and were first identified by Stockdale geologists who recovered indicator minerals and some diamonds. Their significance was recognised by KDC in 1996, following the recovery of a 2.4 carat brown diamond from the first bulk sample collected.

Subsequently, Terrace 5 has been traced over a distance of 33.6km with the original river flowing generally from east to west. The eastern limit of Terrace 5 has not been defined but it appears to originate from near the central section of the Ellendale Lamproite Field. Gravels tentatively identified as belonging to Terrace 5 have been recorded up to 8km west of the 67 Mile Creek Road. Recent erosion has removed western extensions of the channel and divided the remaining section into three discrete zones

The A Channel Project

The majority of the Ellendale lamproites lie along a low topographic high, known also as the Ellendale Ridge. This forms a watershed for modern creeks such as McSherry Creek and Mt North Creek, to the north of the ridge and Mt Wynne Creek, to the south. The A-Channel Project encompasses a relatively young palaeo-channel located about 3km north of the Ellendale 4 lamproite pipe. The associated gravels have previously been sampled and are known to contain alluvial diamonds and lamproitic indicator minerals. The diamonds were apparently incorporated in a north flowing drainage originating from near Ellendale 4. This drainage is much younger than the J-Channel and post-dates the aeolian sands that cover that system.

The A-Channel gravels are described as being colluvial, derived mainly from sandstones rimming the Mt Percy lamproite, as well as coarse in-fill gravels with a southern provenance. The total length of the upper reaches of this channel system was investigated over a distance of about 6km by geophysical surveys. The gravels are 0.5m to 1.7m thick and rest on limestone bedrock.

The A-Channel Project currently lies entirely within E04/801 and is held in the name of Ellendale Resources. A letter of agreement between KDC and Ellendale that included exploration licences E04/801 E04/911, E04/1062, E04/1092 and E04/1093 was initially signed in June 2001. This stipulated that KDC could earn up to 75% interest in these tenements by meeting the Department of Industry and Resources expenditure commitments through to bankable feasibility. In April 2004 KDC, Blina and Ellendale reached an agreement that will result in Blina acquiring 100% control of the five Ellendale-controlled tenements.

The palaeo-channel has been projected to extend into the Ellendale Mining Lease (M04/372). Blina has reached an agreement with KDC that will allow it to explore for and mine alluvial diamonds within the M04/372. Details of the agreements with Ellendale and KDC are given in the Summary of Material Agreements section of this prospectus.

The J Channel Project

The J-Channel Project targets alluvial diamonds eroded from the Ellendale 4 lamproite pipe. Diamonds liberated from this pipe were originally captured by an ancient, south-flowing drainage system and re-worked into extensive gravel deposits. Sections of these gravels have been identified beneath aeolian sand cover to the south of Ellendale 4. These deposits have been termed the J-Channel and are known to contain significant and potentially economic diamond concentrations.

Blina believes that this palaeo-channel has the potential to support a significant alluvial diamond mining operation and an intensive evaluation of these gravels is warranted. This is a reasonable belief given the historical data reviewed for this Project.

The J-Channel currently falls within M04/372 and E04/726. E04/726 was originally granted to Auridiam in January 1993. In December 1996, KDC entered a Joint Venture with Auridiam to explore for diamonds within the tenement and has managed the project since that time. Auridiam transferred all of its Australian diamond assets into Blina and in 2002, KDC purchased this company (ie, Blina). Blina has reached an agreement with KDC that will allow it to explore for and mine alluvial diamonds within M04/372 (the Ellendale Mining Lease).


This project area covers 25km2 and is centred on a group of three small lamproite pipes (Kimberley 1 – K1, Kimberley 2 – K2, and Kimberley 15 – K15) located about 15km to the southwest of the Ellendale 9 Mine. The prospectivity of this project is enhanced by the high percentage of ‘diamond inclusion’ chromites recovered from these lamproites. While the three known pipes provide small but interesting targets in their own right, Blina believes that other lamproite pipes will be located in this largely untested area. The search for more pipes will hinge on the re-evaluation of existing geophysical data, a new electromagnetic survey and termite-mound geochemical sampling programmes.

Regional Programmes

In addition to the specific project outlined previously, Blina will conduct comprehensive coordinated regional exploration programmes over large sections of the tenement area. With the entire Ellendale Lamproite Field and extensive surrounding regions available for exploration, Blina will be able to conduct a thorough re-evaluation of the entire Ellendale Field, unfettered by the constraints of tenement boundaries. This has not been possible in the area since the early days of the Ashton Joint Venture.

In the intervening 25 years, significant progress has occurred in the understanding of lamproite pipes and alluvial diamonds. Added to this are major advances in geophysical and geochemical techniques, data processing technology and the introduction of the Global Positioning System and computer based, Geographical Information Systems (GIS) for manipulating and displaying data. These advances taken together mean that today’s explorer has a significantly better chance of finding new deposits. Blina geologists draw their experience from more than 10 years of successful exploration in the Ellendale Field.

Blina has defined three regional reconnaissance projects:

* The Northern Reconnaissance Project,
* The Central Reconnaissance Project, and
* The Southern Reconnaissance Project

The Northern Reconnaissance Project (NRP)

The northern-most regional programme consists of a 275km2 rectangular area centred on the Fairfield Valley north of the Ellendale Ridge. This area was targeted by Diamond Mines Australia Pty Ltd (“DMA”) as the initial area in the Ellendale Field to trial the Falcon™ gravity gradiometer system. In July 2003, Blina signed an agreement with DMA to fly the Falcon™ technology over an area that had the potential to host large undetected lamproites. The airborne programme was fully funded by DMA for a 50% participation interest in each new discovery on the relevant tenements. This percentage was reduced for tenements held by Blina joint venture partners. Seventeen lamproite pipes are known to occur within the NRP area.

This project includes exploration licences E04/820, E04/821 (Bazco), E04/1092, E04/1093 and E04/911 (Ellendale) and E04/1105 (KDC). Several agreements impact on this project. The first is with Ellendale Resources and is outlined in a previous section. In November 2002, KDC announced a farm-in agreement with Bazco to earn a 75% interest in exploration licences E04/819, E04/820 and E04/821. In 2003 KDC, Blina and Bazco reached an agreement that will result in Blina acquiring 100% control of the three tenements. Details of agreements related to this project are given in the Summary of Material Agreements section of this prospectus.

The Central Reconnaissance Project (CRP)

The CRP project area covers all of the central Ellendale Lamproite Field as well as the headwater-regions of all of the known palaeo-drainages. The boundaries of the project area are the limits of an EM survey that Blina and KDC will undertake to jointly re-examine the Ellendale Field. This survey will cover approximately 500km2 of the Ellendale Ridge with a north-westerly axis of 45km and an average width of about 10km (Figure 4). Central to this area is the Ellendale Mining Lease that will be included in the EM survey but is partially excluded from the CRP Project area. Blina will agree to fly the survey at its sole cost and will provide KDC with the data. Blina will have the right to explore for and mine any palaeo-gravel deposits identified from this survey, while KDC will retain any and all lamproite pipes3. The CRP includes most of the K1-K2 Lamproite Project area and the southwestern sector of the North Reconnaissance Project (NRP).

The Southern Reconnaissance Project (SRP)

The SRP encompasses an area of approximately 500km2 to the southwest of the Ellendale Ridge. The area includes a regional surface chromite anomaly identified by Stockdale and spread along a Palaeozoic ridge that runs parallel to the Ellendale Ridge. The provenance of these chromites and the traces of pyrope garnets and diamonds identified in this anomaly have not been adequately explained. This Project is secured under three exploration licences that are wholly owned by Blina.

Mine For


Location of operation(s)

Western Australia


Level 3, 52 Kings Park Road


(+61-8) 9426 9888



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The data on Australian is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.