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.
TERRACE 5
Terrace 5 is an advanced project evaluating diamondiferous gravels occuring within an ancient river system (palaeo-channel). The palaeo-channel was discovered by KDC in 1994 and subsequently traced over a distance of 35km. Channel widths are typically 200-500m with gravels averaging about 1m in thickness.
KDC and Blina have undertaken extensive bulk sampling of the system and have recorded diamond grades from the gravels ranging up to 11.1cpht. The diamonds are large with an average size of 0.4ct. Most of the stones are of gem quality, with the population dominated by white diamonds. The largest diamond so far recovered weighed over 8ct, with stones larger than 2 carats, common. The source (or sources) of the Terrace 5 diamonds has not been discovered and is the subject of active exploration programs by Blina and KDC.
The Terrace 5 program for 2005 is fully funded from proceeds of Blina's initial IPO.
Terrace 5 - 2005-6 Program
- Excavation of 2x25,000 tonne samples to recover about 2000 carats
diamonds for valuation and grade distribution purposes.
- Processing of gravels is progressing well and Blina are confident that the
2000+ carats of diamond predicted from this program will be recovered.
A preliminary valuation on the diamonds is expected in the second quarter
of 2006. Results of sampling to processing to date are summariesd in an
accompanying table.
- With a "run-of-mine" value for the Terrace 5 diamonds, Blina will be able
to proceed with scoping and/or feasibility studies to consider a full scale
mining program for the gravels.
- In 2006 Blina will undertake and intensive wide diameter, Bauer drilling
program to explore and evaluate Terrace 5 upstream of Cut 1.
ELLENDALE 9 NORTH PROJECT
Under an agreement with KDC, Blina has the right to explore for and mine alluvial diamonds within the Ellendale Mining Lease. Ellendale 9 North is a new project targeting alluvial diamonds shed from the Ellendale 9 lamproite. Blina estimates that diamonds worth in excess of A$500 million have been eroded from this pipe since its eruption. Results from this relatively new project have been spectacular.
- Exploration pitting has defined two north-flowing palaeo-channels draining
the Ellendale 9 lamproite (Eastern and Western Channels). The palaeo-
channels are typically overlain by a younger, lateritic gravel. Preliminary
bulk testing of gravels has produced high grades from both palaeo-
channels, with lower grades recorded from the overlying lateritic gravel.
- To date most exploration has centred on the West Channel. The southern
section of the channel lies within an area that KDC wishes to use for a
waste dump. Blina has now completed mining of gravels from the
footprint of the waste dump. Processing of 35,700 tonnes produced
7,350 carats of diamonds. The diamonds have an average size of 0.38ct
with the largest stone recovered weighing just less than 10ct. Trenching
indicates that high grades continue to the north.
- Little work has been undertaken of the Eastern Channel Compared to the
West Channel it is strongly incised and extensively reworked. A single
trench sample excavated across the Eastern Channel returned excellent
grades despite the fact that it included a significant proportion of the lower
grade, lateritic gravel. The Eastern Channel drains the eastern lobe of
Ellendale 9 where KDC are achieving values of $US350/carat for
diamonds of similar average size.
- Blina is continuing exploration and seeking environmental approval to
continue mining in the Ellendale 9 North area. The company believes the
area will support a significant alluvial mining operation and plans to
commence this work in 2006.
ELLENDALE 4 ALLUVIALS
The Ellendale 4 lamproite is located in the south-eastern section of the Ellendale Lamproite Field and KDC has recently commenced mining in the area. Ellendale 4 effectively lies on a drainage divide and Blina is targeting alluvial diamonds from areas north and south of the pipe. Blina's J Channel project comprises gravels extend over 7 kilometres and are covered by a variable thickness of sand. Bulk sampling has shown that diamond grades within the gravels are potentially of ore-grade.
North of Ellendale 4 Blina has recognised an environment similar to Ellendale 9 North. This area has not previously been evaluated and the company will commence exploration in 2006.
REGIONAL PROGRAMS
At it's formation, Blina acquired access to the entire central core of the Ellendale Lamproite Field and extensive surrounding areas. With unified control achieved for the first time since the discoveries in the 1970's, the company has the chance to undertake a complete re-evaluation of what is widely considered to be Australia's most prospective diamond field. Blina has commenced exploration over the area using a variety of exploration techniques with the aim of locating previoulsy unrecognised lamproitic and alluvial diamond deposits. The programs presently underway target new diamondiferous bodies as well as re-examining a number of known, but under-explored, lamproite pipes.
During 2004 and 2005, Blina commissioned several airborne geophysical surveys that cover large sections of the Blina tenements. Data collected from these surveys included, airborne electromagnetics (Tempest), detailed aeromagnetics and differential gravity (Falcon); all surveys have the primary aim of locating new diamondiferous lamproites.