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Exploration

Koidu Holdings contracted leading Canadian geophysics instrumentation manufacturer, Phoenix Geophysics Limited, to undertake an Audiofrequency Magnetotelluric (AMT) survey at the Koidu Kimberlite Project in March 2007. This method has been applied successfully in kimberlite exploration in Russia (Arkangelsk and Yakutia) and in Canada. The results obtained from Koidu prompted the Company to extend the survey to the Tongo Field Diamond Project, to test the effectiveness of the technique on the narrow Lando and Kundu dyke zones between the bulk sampling sites and to investigate the area around the Peyima Blow.

The survey is land-based, with a series of stations laid out on a grid or along a traverse, depending on the environment and objective of the survey. Measurements were taken during the day, as well as during the night. After each day's data acquisition, the information was downloaded onto computers for processing, and the equipment moved to the next set of stations. The geophysicists on site were focussed on data acquisition and preliminary processing. The data was then sent to Toronto for detailed analysis, interpretation and plotting.

The layout of the equipment is shown in the photographs below:

Interpretation of the data was carried out by Phoenix Geophysics in Canada and the results presented in a report finalised in October 2007. Three anomalies were detected but must be drilled to confirm whether they are kimberlite bodies or not.

Based on these initial results, Phoenix has made suggestions of other combinations of techniques which could be considered to improve the data quality of future surveys on the remainder of the licence area.