2.0 The Proposal

Ashton Mining Limited have applied for MLN1154, covering their existing   exploration leases ERL141, ERL142 and SEL8630, to develop the Merlin Diamond   Project, located approximately 75 kilometres SSE by road from the McArthur River   Mine, Northern Territory.

Ashton Mining Limited proposes to develop six open pits and two bulk sample   pits over a period of 2.5 years. Ashton Mining Limited will mine 730,000 cubic   metres of ore by open cut method from the eight pits for processing on site. The   tailings produced in processing will be discharged to two tailings dams (fine   and coarse tailings).

It is estimated that approximately 4.8 million cubic metres of waste rock   will be produced from the eight pits and this will be placed into four above   ground dumps located adjacent to the pits.

All of the kimberlite pipes to be mined in this first stage have the   potential for future expansion and may lead to the eventual expansion of the   open pits and/or underground mining at a future stage. The surrounding area also   has significant exploration potential and additional kimberlite pipes may be   discovered in the area.

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