Aries Diamond Project

Jindalee’s Aries project is located in the central Kimberly region of Western Australia, approximately 270km east of Derby.  The project comprises a granted Exploration Licence (E80/5027), an exploration licence application (E04/2512), and the diamond rights on an adjacent tenement (E80/5117).

Historically, the Aries kimberlite pipe was discovered in 1986 by Triad Minerals, in joint venture with Freeport, with subsequent exploration undertaken by companies including Thunderlarra, BHP Billiton Minerals and United Kimberley Diamonds (“UKD”).

In 2005 UKD undertook bulk testing on several kimberlite pipes at the Project, recovering a total of 22.5 carats of diamonds from 2,169 tonnes of treated material. UKD noted that “although the diamonds are of gem quality and the pipes are significantly diamondiferous, these kimberlites are not considered to be economic  at this time (due to low grade (carats per hundred tonnes) not quality)”.

In 2006 UKD changed its name to United Minerals Corporation (ASX: UMC) as its emphasis shifted to bulk commodities, primarily bauxite in the Kimberley region and iron ore in the Pilbara, although the company retained a Mining Lease (M80/329) over the Aries kimberlite cluster.  United Minerals Corporation subsequently discovered a high grade iron ore deposit abutting BHPs Area C mining operations.  In October 2009 BHP announced a takeover for United Minerals Corporation and M80/329 was surrendered in November 2009.

Aries Project tenure and geology showing historic diamond occurrences

WA Department of Mines, Industry, Regulation and Safety records indicate negligible work has been undertaken on the Aries Project since 2009.

E80/5027 covers the Aries kimberlite cluster, including the Aries, Athena, Helena and Persephone diamondiferous kimberlite pipes.  Jindalee believes that there is very good potential for a focused diamond explorer to find additional diamondiferous pipes and alluvial diamond deposits in the area.  Encouragingly, 95% of the diamonds recovered from the project have been gem quality.

The Company has undertaken a review of historic exploration activities which has highlighted the potential for kimberlite pipes and alluvial diamond deposits in areas outside E80/5027.  An agreement was subsequently negotiated with Celsius Resources Limited to purchase the diamond rights on their neigbouring tenement E80/5117, in exchange for the base metals rights on E80/5027.  An additional tenement application E04/2512 has been lodged to cover the remaining priority targets identified in the district.

The overall Aries Project now covers a substantial 1,048 km2 with numerous targets warranting follow up.  Jindalee is currently considering various options to further advance the Project.