North Australian Diamonds Limited

Merlin Diamond Project

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Recent Highlights

• Merlin Diamond Mine commenced production
• The total Merlin JORC compliant combined Indicated and Inferred Mineral Resource is 19 million tonnes for a contained 4.3 million carats.
• The total Merlin JORC compliant Probable Ore Reserve is estimated at 11.1 million tonnes for a contained 2.9 million carats.
• The total Merlin diamond Mineral Resource and Ore Reserve is the second largest in Australia.
• The Company sold parcels of rough diamonds from the 2010 production trials. The sales have generated proceeds of US$1.865 million. The Company has retained a quantity of high value special stones, including one which has been cut and polished for marketing and valuation purposes.
• Processing of bulk samples extracted from the Borroloola alluvial project recovered 22 diamonds with a total weight of 1.09 carats.

The Merlin Diamond Project is located some 100 km south of the settlement of Borroloola and comprises 14 kimberlite pipes, grouped into four clusters. Nine of these pipes were subject to open-pit mining over a 5 year period commencing in 1998. The operations ceased in 2003 having produced 507,000 carats of diamonds. During its short operational life, Merlin Diamond Project was renowned for the production of top quality white diamond and large specials, the largest being 104.73 carats. Merlin Diamonds Pty Ltd, formerly North Australian Diamonds, acquired the project from the Rio Tinto Group in 2004. In 2012, part of the latest parcel has been sold on international markets generating proceeds of US$1.865 million.

The Merlin diamond mine undertook pilot production in 2013. The Company is also pursuing a number of high priority exploration targets within the tenement holding surrounding the Merlin Diamond Project.

Click image to enlarge.

Click image to enlarge.

The Merlin Mineral Resources have been and classified and reported in accordance with the 2004 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code). The Merlin Mineral Resources estimates have been prepared by T.H. Reddicliffe. T. H. Reddicliffe is a Fellow of the Australasian Institute of Mining and Metallurgy. T.H. Reddicliffe is a consultant to North Australian Diamonds Limited. T.H. Reddicliffe has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which they are undertaking. This qualifies T.H. Reddicliffe as a "Competent Person" as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.

• 21 February 2018 Merlin operations progress report > Read more

• 31 January 2018 ASX Quarterly Report December 2017 > Read more

• 17 January 2018 Appendix 3B - New Issue Announcement > Read more

• 17 January 2018 Placement of shortfall from entitlements issue completed > Read more

• 8 January 2018 Placement of shortfall from Entitlements Offer > Read more

• 20 December 2017 Appendix 3B - New Issue Announcement > Read more

• 20 December 2017 Placement of shortfall from Entitlements Offer > Read more

• 11 December 2017 Merlin to process +20mm oversize material using Tomra XRT sorter > Read more

• 1 December 2017 XRT Tomra Machine on site > Read more

• 1 December 2017 Entitlements Issue - Acceptances and Shortfall > Read more