Eurelia, South Australia

The Eurelia project area is located about 50 km east of Port Augusta in the Southern Flinders Ranges (Figure 1). The project has been purchased from Flinders Mines Limited (FMS) for a 1% NSR royalty. The project consists of five granted exploration licences covering a large area of about 20 by 80 kilometres (Table 1 and Figure 1).

Five granted exploration licences cover 1685 square kilometres over both the Eurelia kimberlites and the diamondiferous Springfield Basin. The Eurelia Township is shown by Figure 2.

A considerable amount of previous exploration has located numerous kimberlites – including the only known significantly diamondiferous kimberlites in South Australia. Recent exploration by FMS located at least three new highly diamondiferous kimberlites in the Eurelia field which have not yet been bulk sampled – the sites are shown on Figure 2.

The Eurelia Kimberlite Province north of Orroroo contains numerous kimberlite intrusions confirmed by previous explorers to contain diamonds. Around 1077 diamonds have been recovered from the kimberlites by previous explorers. These include 138 by De Beers (1978-80), one by Orogenic Exploration (2004) and 938 by Flinders Mines, originally called Flinders Diamonds (2004-2010). Flinders Diamonds (FDL) changed its name to Flinders Mines in 2007 to focus entirely on iron ore which was booming at that time. FMS still thought the diamond tenements had potential, so it created a spin-off company, Flinders Exploration (FEX) to explore principally for diamonds and phosphate. After two years, FMS terminated its JV with FEX and eventually agreed to the current deal with DRS.

Flinders Diamonds was successful in discovering new kimberlite dykes and fissures using high resolution magnetic surveys (see Figure 4). They completed extensive microdiamond digest sampling on these new kimberlites. The recent diamond contents are the highest in the region to date and were located by Flinders Exploration Limited in 2010 after Flinders Mines last bulk sampling in 2006. They warrant new bulk sampling to determine the concentration of economic sized diamonds.

The Eurelia area is ideal terrain for exploration activities with good relations established with the property owners and no issues with Native Tile. One of the proposed bulk sample sites (K4 – K7) is shown in Figure 5 where the easy terrain is clear. Previous excavation and rehabilitation of kimberlite sites in this area is shown on Figure 6. Some of the diamonds recovered are shown in Figure 7. Two of these are microdiamonds while the third at 1.85 mm is a macrodiamond (Figure 8). This was recovered from a small 20 kg sample which is a rare event, and an indication of the high grade at this locality.

This project represents the culmination of many years of exploration with diamondiferous kimberlites containing exceptional diamond counts that need to be bulk sampled (see Figure 9). Diamond Resources has already acquired a Dense Media Separation (DMS) plant which, after some initial sampling and trenching to confirm the best locations, will be ready to commence bulk sampling in 2015.

Table 1 Diamond Resources’ tenement holdings for the Eurelia project area

Figure 1 Eurelia project tenements, 50 km east of Port Augusta.

Figure 2 Variably diamondiferous dykes and fissures in the Eurelia area.

Figure 3 View of Eurelia Township looking south – the area of highly diamond-anomalous kimberlites is in the foreground.

Figure 5 K4 – K7 bulk sample site area southeast of Bel Forest.

Figure 4 Proposed Eurelia bulk sampling sites, shown on a detailed airborne magnetic image.

Figure 6 Previous kimberlite target testing and (inset) rehabilitation in the Eurelia area.

Figure 7 Diamonds from microdiamond sampling at Eurelia.

Figure 9 Eurelia samples with very high diamond counts.

Figure 8 1.85 mm Eurelia macrodiamond found during microdiamond sampling.