The current resources at existing mining operations are contained within 15 km2. The Chapada Project tenement holdings include a further 270 km2 (27,000 hectares) of prospective gravel terraces in the Casca Basin. The geological setting of these areas is almost identical to that of the existing mine area. This together with the lack of modern exploration work carried out on these tenements provides significant potential to grow the resource base and expand production capacity through successful exploration of these additional areas.

The existing Chapada diamond recovery processing plant has been designed for low cost expansion of production capacity in anticipation of increasing the resource base. This will allow production growth to be significantly fast tracked upon the delineation of further reserves.

The existing Chapada Project processing plant will provide a cost efficient, effective and expeditious testing facility for bulk samples taken from these exploration areas.

The kimberlite source of the Chapada diamonds has not yet been explored for but the stone size distribution analysis, based on diamonds recovered to date, suggests the source of these diamonds may be close to the Quilombo and Peba Lagoinha tenements. Therefore substantial exploration upside exists for discovery of the primary hard rock (kimberlite) source(s) of the alluvial diamonds in the Chapada area.