North Australian Diamonds Limited acquired 100% of Mining Lease 1154 covering the former Merlin Diamond Mine operations in the Northern Territory from Ashton Mining Limited (a wholly owned subsidiary of the Rio Tinto Group) in 2004. This acquisition built on the Merlin Orbit exploration tenements which had been previously acquired from Rio Tinto.
The project is situated approximately 75km SSE by road from McArthur River, 80km due south by air from the town of Borroloola and 720km SE of Darwin in the Gulf Region of the Northern Territory.
The Merlin diamond field comprises 14 kimberlite pipes, grouped into four clusters. Twelve of the pipes, all subject to either open pit mining or testing, are located within the mineral lease MLN1154, which was granted on 15th June 1998.
Merlin diamonds are known for the brilliant white colour and large size. The largest diamond ever found in Australia, a 104.73 carat white gem quality stone, was recovered from Merlin and was valued at approximately US$525,000 in 2002. Recently NADL sold a 10.60ct gem stone for A$201,672.
In line with world increases in diamond prices a recent revaluation of Merlin goods indicates a 30% increase in price to approximately US$140 per carat. The prognosis for rough diamond prices over the next 10 years is very favorable with annual increases of 5% predicted due to declining production from current world reserves and demand for diamonds increasing.
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