5th December 2005
$750,000 share and option placement

Cluff Resources Pacific NL intends making a placement of 53,571,428 fully paid ordinary shares, and 53,571,428 unlisted options expiring June 30, 2008 to purchase shares in Cluff Resources Pacific NL with an exercise price of 2.0 cents to Firebird Global Master Fund, Ltd., based in New York. The shares are being placed at a price of 1.2 cents, and the options at 0.02 cents. The placement is subject to the completion of a share purchase agreement and all other formal matters associated with the placement, including the approval by the Company’s shareholders being completed by 31 January, 2006.

This placement is intended to raise $A 750,000.

Firebird Global Master Fund Limited www.fbird.com is a portfolio equity fund that invests in exotic market sectors around the world and is one of six Firebird investment funds totalling over US$1.6 billion.

It is the Board’s intention that funds raised in this placement will be utilised as below:
1. Drilling program and interpretation at Bingara Diamond Field to determine suitable location for evaluation shaft: $A 100,000.
2. Sinking of shaft to approx 50 metre depth at Bingara Diamond Field: $A 400,000.
3. Negotiations to acquire overseas diamond interest; $A100,000.
4. Working Capital; $A 150,000.

The placement will require approval of Shareholders at an Extraordinary General Meeting of the Company, and this has been scheduled for Thursday, 19 January, 2006 at the Company’s offices at Hornsby. The Directors will be recommending the placement to shareholders.

Peter Kennewell,
MANAGING DIRECTOR

2nd December 2005
Lower diamond target sampling, Bingara

The first sample processed from the lower target horizon at the Upper Four Mile pit, consisting of ten tonnes from the upper part of the hot spring lake (Sample UFM 5) contained no diamonds.

The sample from the lower part of the hot spring lake (Sample UFM 6) will be processed next week.

Peter Kennewell,
MANAGING DIRECTOR

30th November 2005
Cowie 1 Oil Well

Beach Petroleum has advised the ASX that Cowrie 1 oil well was being plugged and abandoned, having failed to encounter any hydrocarbons.

Peter Kennewell,
MANAGING DIRECTOR

24th November 2005
Lower diamond target discovered at Bingara

A large diameter drilling program of four holes has been completed from the floor of the Upper Four Mile pit at Bingara. The holes targeted a lower diamond bearing horizon described in old reports on the rich Monte Christo diamond mine, operated during the 1890s. This drilling has been made possible by the previously impenetrable basalt cover being removed by the Company’s excavations.

The basal sediments, interpreted by Cluff to have formed in a hot spring lake, were intersected by these holes beneath the basement shale rocks of the pit and at about seven metres depth. These sediments are considered by the Company to be potentially diamond bearing, as they are consistent with theories of previous miners that "volcanic agency would account for such depositions as we know exist. For instance, a line of volcanic steam vents or geysers might have existed in a belt or fissure right across the country".

Two bulk samples totalling twenty two tonnes have been trucked to the Company’s plant at Copeton, and are being processed at present. Results are expected next week.

Peter Kennewell,
MANAGING DIRECTOR

16th November 2005
Cowrie 1 Oil Well commences drilling

Beach Petroleum Limited has advised that the Cowrie 1 oil well spudded on 14 November, and reached a depth of 37 metres before losing circulation in surface limestone. Cement has been set to alleviate the problem, and drilling will recommence this morning.

Cowrie 1 is located approximately 25 kilometres southwest of Naracoorte and will test the oil potential of a fault dependent trap at the Sawpit Sandstone level. Its planned total depth is 1408 metres and the well is expected to take about 12 days to drill and evaluate (see time depth chart). Cowrie 1 is the first South Australian onshore Otway Basin oil well to be drilled since Jacaranda Ridge 1 discovered a sub-commercial Sawpit Sandstone oil pool in 1999.

Essential Petroleum Resources Limited advised the ASX on 27 September that Cowrie has the potential to hold in excess of four million barrels of recoverable oil.

Peter Kennewell,
MANAGING DIRECTOR

15th November 2005
Ruby Mine October production

During the four weeks to the 28th of October, 3,213 tonnes of gravels sourced from Area 11 (Upper Terrace deposits) were processed through the plant at the Ruby Mine. Of the production, approximately 60,405 carats were of usable quality: 26,347 carats of facet quality ruby at a grade of 8.2 carats per tonne, 13,816 carats of facet quality sapphire (mainly blue, green and yellow in colour) at a grade of 4.3 carats per tonne, and 20,242 carats of cabochon quality ruby at a grade of 6.3 carats per tonne. In total, this represented a grade of 18.8 carats per tonne of usable ruby and sapphire.

In early November, the Ruby Mine work crew were engaged on improving our environmental protection systems, which we are maintaining to a high standard. These works took a week to complete, and November’s production figures will be affected as a result.

Peter Kennewell,
MANAGING DIRECTOR

28th October 2005
Eighty One diamonds recovered from Bingara Diamond Project

Eighty one diamonds have been recovered from the southern outcrop of the Elliott’s "Pipe", a 1,700 metre long bedrock depression created by hot spring lakes, named and described by George Elliott during the diamond mining boom at Bingara during the 1890s. Several former mines accessed this structure at that time. This encouraging result supports the Company’s recent reinterpretation of the mined areas and their geology.

Processing of CD 3, taken from Cluff’s bulk sampling pit on the southern outcrop of this depression, has yielded a grade of 16.4 carats per hundred tonnes of gem quality diamonds. The diamonds weighed a total of 13.0 carats. It consisted of 79 tonnes of mud with numerous altered and deformed boulders and centimetre sized rounded chert pebbles, interpreted as originating in a hot spring lake.

The sample was about two metres thick, and extracted from immediately above the 0.75 metre thick sample CD 4, which carried diamond at a grade of 5.9 carats per hundred tonnes. Several tunnels and an open cut from the Australian Diamond Mining Company’s former workings were present in the area sampled. The diamonds recovered are shown in the photograph below.

Peter Kennewell,
MANAGING DIRECTOR

27th October2005
Ruby Mine production update

During the fortnight ended 30th September, 861 tonnes of gravels sourced from Area 11 (Upper Terrace deposits) were processed through the plant at the Ruby Mine. Of the production, approximately 20,793 carats were of usable quality: 11,839 carats of facet quality ruby at a grade of 13.8 carats per tonne, 3,125 carats of facet quality sapphire (mainly blue, green and yellow in colour) at a grade of 3.6 carats per tonne, and 5,829 carats of cabochon quality ruby at a grade of 6.8 carats per tonne. In total, this represented a grade of 24.2 carats per tonne of usable ruby and sapphire.

Grade and mining rate were affected by the geology of the pit area: the excavation followed a dip in the bedrock to the south, which ran away from the river. A shallow and thin gravel layer dipped into a depression containing gravels over two metres thick, with much thicker overburden (2 to 3 metres).

During the previous fortnight ended 16th September, 470 tonnes of gravels sourced from the excavation of the recently-constructed bridge footings were processed separately through the plant to provide a detailed analysis of gem quality from the lower level Recent Alluvial deposits. Grades and quality are being determined at present. Further washing of gravels had to be put on hold for the remainder of the fortnight due to the need to clean out the tailings dam, which had been affected by silting due to the recent higher throughput rate. Modifications to the tailings dams and work practices have greatly reduced the problem, and production has been able to continue routinely.

During the subsequent fortnight ended 14th October, 1877 tonnes of gravels sourced from Area 11 were processed through the plant. These are currently receiving final processing, with grade and production results expected soon.

Peter Kennewell,
MANAGING DIRECTOR

25th October2005
Underwriting of Security Purchase Plan

In accordance with ASX listing rule 3.11.3, the Company is pleased to advise that it has secured an agreement to underwrite its Security Purchase Plan up to the value of $1,000,000.

The underwriting, by Kefu Underwriters Pty Ltd, has normal contingencies which allow for release from the agreement. These include (but are not limited to): insolvency; a 10% decline in any of the ASX 500 Index, the Dow Jones Industrial Average and the $US gold price; an outbreak of hostilities; and/or an actual or projected increase in the Reserve Bank of Australia's Official Cash Rate beyond 6%.

The underwriting ensures that the Company will raise at least $1 million, which will be used to continue its current programs.

A 5% fee is payable in respect to the underwriting agreement.

Peter Kennewell,
MANAGING DIRECTOR

21st October2005
Interest in Cowrie 1 oil well

The Company advises that an overriding royalty of 0.75% of the wellhead value of any hydrocarbon production from the Cowrie 1 oil well, commencing in mid November, is payable to Cluff Resources Pacific NL, a former holder of Permit PEL 27 in the onshore Otway Basin in South Australia.

This is the first onshore exploration well in six years to specifically target oil in the south east of South Australia, and has been scheduled for spudding in mid November by the operator, Beach Petroleum Limited. The well will be drilled to a depth of 1,400 metres in pastoral country 25 kilometres southwest of Naracoorte. Cowrie 1 is expected to take about twelve days to drill, using the Century 7 rig, currently drilling near Port Campbell in western Victoria.

Beach advises that PIRSA records show that there has been no drilling onshore for oil in that part of the State since the Jacaranda Ridge 1 well in 1999 discovered a waxy crude oil play in the Sawpit Sandstone formation – although the discovery was not commercialised. Their objective is the Sawpit Sandstone, and they will be drilling about 17 kilometres from the Jacaranda Ridge site.

Participants in the PEL 27Joint Venture will be:
Beach Petroleum Limited: 30% (Operator)
Origin Energy Resources Limited: 50%
Essential Petroleum Resources Limited: 20%
Cluff Resources Pacific NL: 0.75% overriding royalty

Cluff Resources Pacific NL’s last participation in oil exploration in PEL 27 was in 1992, when it transferred a 30% participating interest in this permit to Cultus Petroleum (Australia) NL in return for the above royalty (2.5 % overriding royalty on Cultus’s 30% interest). Subsequently Sawpit 1 well was drilled to 2,800 metres, and recovered oil-cut mud from drill string tests in basement before being plugged and abandoned.

Peter Kennewell,
MANAGING DIRECTOR

13th October2005
Security Purchase Plan

The Company is pleased to announce a Security Purchase Plan to allow shareholders on the Share Register at 11 October, 2005 to purchase up to $5,000 of ordinary fully paid shares in the Company at a discounted price of 1.2 cents each. Details of the plan are outlined on the attached Application Form. The Company is seeking underwriting for the plan.

Also attached is the document which will be posted to shareholders in relation to the Plan, and an exclusive offer to shareholders to purchase rubies and pink sapphires mined by the Company.

The Directors of the Company advise that they intend to purchase their full entitlements under this Plan .

Peter Kennewell,
MANAGING DIRECTOR

(To view a PDF (760 kb) version of the documents, click here. Shareholders should begin receiving their offer documents from Friday the 14th of October)

11th October2005
Old Bingara mine proven to be diamondiferous

The old mine reopened by excavating an eleven metre deep pit over an old shaft was proven to have been mining diamonds by the Company’s recently completed bulk sampling pit. Two diamonds, representing a low diamond grade were recovered from sediments interpreted by the Company as having an origin at the base of a hot spring lake. These were exposed in only one small part of the pit, adjacent to the shaft. The diamonds are shown below:

The pit was dug on the edge of an extensive 1800s mine which the Company has now concluded is the original, very richly diamondiferous Monte Christo Mine, worked by "Captain" Charles Rogers. This is based on its mine plan, which is consistent with contemporaneous descriptions, the geological rock types present, and the accompanying heavy mineral suite. This recovery of diamonds on the edge of the mine supports the Company’s conclusion. It is also apparent that large areas of the mine were worked out a century ago. Potential for locating similar mines beneath nearby flat lying recent sediments, or the basalt of the adjacent mountain is obvious.

Four samples were taken from the pit, and their locations are shown on the accompanying sketch.

Sample UFM 1 was of mixed rock types, with 60% interpreted as hot springs mud with some pebbles and sand, and the remainder altered fractured bedrock with mud infill. 40 tonnes were processed to yield two diamonds weighing half a carat in total.

Sample UFM 2 was of fractured altered shaly bedrock with some mud in cracks, and twenty tonnes processed yielded no diamonds.

Sample UFM 3 consisted of fragments of altered shale bedrock in a mud matrix, and forty tonnes processed yielded no diamonds.

Sample UFM 4 was only 18 kilograms, and was washed manually in a gold pan. It yielded a very rich array of heavy minerals recorded as accompanying diamonds in reports of the old Monte Christo mine, including abundant zircon, tourmaline, ilmenite, common topaz and rutile, and sparse sapphire and garnet.

The photograph above shows the pit excavated at the Upper Four Mile. The diagram at right shows a representation of the structures and geology uncovered here.

Peter Kennewell,
MANAGING DIRECTOR

21st September 2005
Ruby Mine continues production

During the fortnight finishing 2nd of September, 1,583 tonnes of gravels sourced from Area 11 were processed through the plant.

This resulted in production of approximately 33,915 carats were of usable quality ruby and sapphire at a grade of 21.5 carats per tonne: 25,407 carats of facet quality ruby at a grade of 16.1 carats per tonne, 6,944 carats of facet quality sapphire (mainly blue, green and yellow in colour) at a grade of 4.4 carats per tonne, and 1,564 carats of cabochon quality ruby at a grade of 1.0 carats per tonne. This was contained within 12.9 kilograms of total concentrate shipped to CPH Limited.

Peter Kennewell,
MANAGING DIRECTOR

12th September 2005
Ruby Mine record production

The Company’s Ruby Mine has achieved the largest fortnightly gemstone production since mining activities commenced in the region.

Production is now continuing on a routine basis, and during the fortnight finishing August 18, 1,652 tonnes of gravels sourced from Area 11 were processed through the plant. Of the production, approximately 62,605 carats were of usable quality: 41,637 carats of facet quality ruby at a grade of 26.7 carats per tonne, 12,090 carats of facet quality sapphire (mainly blue, green and yellow in colour) at a grade of 7.7 carats per tonne, and 8,879 carats of cabochon quality ruby at a grade of 5.7 carats per tonne. In total, this represented a grade of 41.1 carats per tonne of usable ruby and sapphire. The concentrate shipment (26.6 kilograms at 47 % usable quality) is shown in the bucket in the photograph below.

Access to the high-grade Area 11 has only recently been gained, following the construction of a purpose-built bridge over the Gummi River (capable of supporting trucks weighing up to 40 tonnes), and the issuing of a Construction Certificate for Area 11 mining activities by the Gloucester Shire Council. The bridge ensures not only efficient delivery of mined material to the plant, but also ensures that the river remains environmentally unaffected by the Company’s activities.

Another notable recovery was the large blue/green facet quality sapphire shown below. This stone and measures 16 mm long, 13 mm across and 10 mm high, and at 24.8 carats is one of the largest gemstones recovered to date at the project. It was most likely sourced from the recently mined Area 4, and was found when analysing processed material from the oversize trommel.

During the subsequent fortnight ending on the 2nd of September, 1583 tonnes of gravels sourced from the same area were processed through the plant. These are currently receiving final processing at Hornsby, with grade and production results expected soon.

Peter Kennewell,
MANAGING DIRECTOR

1st September 2005
Old mine reopened at Bingara Diamond Field

An eleven metre deep pit over an old shaft at the Upper Four Mile area has uncovered a tunnel leading to the old working faces of what appears to be an extensive mine, operational during the 1800s.

The tunnel extends for at least fifteen metres, and several thin bands of rock have been previously mined from its sides. Beyond this it enters stope panels in which rock has been extracted for a width of at least five metres, and a height of about one metre. A rock fall has occurred at this point due to lack of support of the wide roof for over a hundred years, and this stops further access at the present time.

The shaft has not been bottomed by our pit, suggesting that a lower level of workings may also be present.

The material extracted by the former miners is a grey mudstone, and contains scattered quartz and black jasper pebbles, some decomposed. Forty tonnes of this material have been trucked to the Company’s processing plant at Mount Ross, Copeton, and another 200 tonnes are stockpiled on site at Bingara. Processing is commencing today. The material extracted for the sample is 4.5 metres thick in the area of the shaft. Drilling shows that it is up to seven metres thick.

The pit was sited as a result of seventy four drill holes now completed by the Company in this area. Twelve have been completed in the last month. These holes have shown that the old mine workings extend over an area of at least 80 metres in width, and 150 metres in length, with working faces up to two metres high. The horizon which was extracted in the old mine, and sampled by the current program, has been shown by Cluff’s drilling to fill an elongate basin structure, and to be more extensive and thicker than previously suggested by these old mine workings.

Photograph at commencement of pit	Rock mined from old tunnel, showing pick marks

Peter Kennewell,
MANAGING DIRECTOR

19th August 2005
Ruby Project production update

During the fortnight finishing August 3, 1,255 tonnes of gravels mined from Area 4 were processed. This pit produces lower grades of rubies, but the gravels carry much larger stone than the previously mined Area 11. Approximately 15,000 carats (containing 7,100 carats of facet quality ruby 2,900 carats of facet quality sapphire, and 5,000 carats of cabachon quality ruby) at a total grade of 2 carats per tonne have been obtained, and have been shipped to Consolidated Press Holdings.

The substantial upgrade of the washing plant, accommodation facilities and haul roads at the ruby project is nearing completion, and larger and more consistent ongoing production has commenced. The project is now employing eight staff.

Construction of a substantial bridge, capable of supporting trucks weighing forty tonnes and hauling across the Gummi River, has now been completed. This was required in order to re-access the high grade deposit in Area 11, and 1,500 tonnes of throughput during the current fortnight has been sourced from this area. As shown in photographs C and D below, the bridge is constructed of four pre-cast reinforced concrete planks attached to concrete foundations set into the bedrock on either side of the river.

The largest facet quality gemstones recovered from the recent Area 4 production were a 9.8 carat pink sapphire (number 1 below), and a 9 carat deep green sapphire (number 4 below). A notable find was the 3.5 carat bright orange facet quality sapphire, shown at number 5 below, and as a closeup in Photograph B. This sapphire measures 10 mm long, 6 mm high and 5 mm wide. This colour is very rare in natural sapphire, and has not been found at the Ruby Project before. The other stones shown in photograph A are: number 2: a 2 carat deep pink ruby; number 3: a 2.4 carat pink ruby; and number 6: a 3.2 carat light green sapphire.

A	B
C	D

Peter Kennewell,
MANAGING DIRECTOR

22nd July 2005
Bingara large diameter drilling commences

The Company has commenced a calweld large diameter (0.75 metre) drilling program at the Upper Four Mile area on the Bingara diamond field. An old mine here, accessed by several shafts, was shown recently by the Company’s percussion drilling to extend at least eighty metres in width and to have working faces two metres high.
.
The program aims to take large samples of the rocks which were being mined in these old workings. The samples will be taken from behind the working faces of the old mine from depths of up to twenty metres. They will be large enough to demonstrate the presence of diamonds if they occur with very high grades.

The previous percussion drilling indicated that the rocks being mined were altered, broken and disrupted bedrock, and the holes will be continued into the bedrock to test for such zones below alluvial deposits.

About six holes are planned to depths of up to thirty metres in the program.

Copeton Drilling Update

The Company has completed its calweld large diameter (0.75 metre) drilling program at Mount Ross, drilling five holes to investigate the nature of a newly identified shear zone.

The drilling was limited to the Doctors Workings, a former area of open cut diamond mining, due to access constraints due to the recent heavy rains.

Results are below:

The samples recovered will be processed to determine whether they carry diamonds when staff currently focused on mine development and production at the Company’s ruby mine become available.

Peter Kennewell,
MANAGING DIRECTOR

5th July 2005
Area 4 ruby production - Update

Following the necessary upgrades to the processing plant, 470 tonnes of gemstone-bearing gravels were processed. A sample of part of the concentrate was taken for analysis, and this has revealed continuing large and high quality gemstones. There is over 22% of this high quality facetable material in the final concentrate, with larger overall sizing than material from Area 11. Grades cannot be calculated until the rest of the concentrate has been analysed. Photograph D shows the sample prior to export: it contains over 1,130 carats of facet quality ruby and sapphire.

The largest facet quality gemstone recovered was a 11.14 carat mixed-coloured stone which was predominantly light green in colour, with a section which showed yellow/pink (stone number 1 in photograph B below). The largest rubies recovered were a 4.03 carat red semi-translucent stone (number 2 in the photograph below) and a 2.31 carat deep pink stone (number 3 in the photograph). There were a large number of facet quality red and pink stones greater than a carat in size (examples shown in photograph A), and many facet quality stones in the range of natural colours which make this deposit unique. Photograph C shows some examples of these colours found in current production: blue, green, yellow, light pink and orange.

A	B
C	D

Peter Kennewell,
MANAGING DIRECTOR

1st July 2005
Copeton large diameter drilling commences

The new geological model developed by the Company for the origin and occurrence of the Copeton diamonds has suggested the presence of a previously unidentified shear zone within the granite of the Mount Ross area. The shear zone has hosted intense alteration of the granite bedrock over a width up to several metres. It has been identified by reinterpretation of previous drilling completed during the 1970s by other companies.

The Company has commenced a Calweld large diameter (0.75 metre) drilling program at Mount Ross to investigate the nature of this shear zone at shallower depths and to confirm its extent. It will investigate the potential of disrupted granite bedrock to carry diamonds, in a similar manner to the disrupted shale bedrock recently found to host diamonds at Bingara.

Discussions with tunnelling contractors regarding continuation of the Copeton underground operations are not yet concluded.

Peter Kennewell,
MANAGING DIRECTOR

16th June 2005
Ellerston introduces rare, naturally brilliant gemstones to market

The following press release was issued by Ellerston Gems, following the official launch of their gemstone range and exclusively designed jewellery last night. As the gemstones are sourced from Cluff’s ruby project under the agreement with CPH Limited, the Company believes the information is of importance to shareholders:

ELLERSTON INTRODUCES RARE, NATURALLY BRILLIANT GEMSTONES TO MARKET

Reflecting the natural brilliance of Australia’s beauty, an exquisite new range of rare pink sapphires and rubies launches this month in Sydney.

The gems, which come from the Ellerston property in New South Wales, will feature in jewellery created by a select group of four Australian jewellers and six jewellers in the USA.

The inspirational sapphires and rubies, which feature a palette of 40 distinct tones, are remarkable for their 100% natural brilliance.

Free from heat treatments or chemical agents and processes, the Ellerston sapphires are poised to sit alongside Australia’s iconic South Sea pearls and pink diamonds in representing the rich, natural beauty of Australia on the world stage.

With diamond-cut facets, the gems range from icy pinks and yellow-greens to teal blues, brilliant whites and rich reds.

"They offer the softness of pastels that are wonderful to use on their own or to enhance bigger gems," said Bruce Kaldor, owner of Rox, one of the four Australian jewellery designers featuring the Ellerston sapphires.

Jan Logan, Percy Marks and Giulians are also using the Ellerston gems.

Importantly, the open-cut mine in the rugged landscape of New South Wales is one of the world’s most environmentally sensitive mines, further enhancing the natural integrity of the gems.

"Australia has never before been known as a source of rubies and sapphires so natural and so rare," said Gerry Manning, marketing and distribution director, Ellerston Gems.

Peter Kennewell,
MANAGING DIRECTOR

8th June 2005
Large, high quality gemstones recovered from Area 4

The ongoing processing of gemstone-bearing gravels from Area 4 at the Ruby Project has confirmed previous sampling statistics, whilst providing encouraging results.

An analysis of 220 tonnes of the material has revealed facet quality ruby grades of 6.4 carats per tonne: higher than grades expected based on previous Trench 4 results. The larger sizing of the material is also noteworthy, with a fair proportion of the gemstones weighing over 1 carat, and up to 3 or 4 carats in the rough.

The largest individual stone recovered was a fractured cabochon-quality pink sapphire weighing 10.4 carats, and the largest facet quality stone was a deep green sapphire weighing 7.4 carats. Other notable gemstones were an 8.5 carat deep red cabachon quality ruby, a 3.8 carat intense pink facet quality ruby, and a 3.2 carat bright yellow facet quality sapphire. Many of the facet quality gemstones also display more intense colouring than the stones recovered from Area 11, and this will be further enhanced by cutting.

The Company has been installing hydraulic rams beneath the processing plant feeder bin over the past week, in order to ensure better inflows of gemstone-bearing gravel into the trommel. This was necessary due to the presence of large boulders and coarser nature of the material currently being mined. Gravels extracted from Area 4 are being stockpiled whilst this necessary upgrade is being performed.

The diagram below shows ground magnetic survey data for Area 4, and the current location of activities there. The large magnetic low features (indicated by deep blue colouring) may represent areas of deep basement depressions in which higher gemstone concentrations may be expected.

Peter Kennewell,
MANAGING DIRECTOR

31st May 2005
Seventeen diamonds recovered at Craddock's Mine, Bingara

Seventeen gem quality diamonds have been recovered at the grade of six carats per hundred tonnes from Craddocks Mine (Sample CD 4) on the Bingara diamond field. The sample weighed
47 tonnes, and contained diamonds weighing 2.8 carats. The largest stone recovered was of 0.39 carats and yellow in colour.

The gravels had been mined by an open cut which was subsequently backfilled, and by a tunnel. The open cut, tunnels and description of the gravels and bedrock breccia are consistent with this
being the mine of the Australian Diamond Mining Company, which commenced operations in 1883.

The sandy gravels occur in the basal 0.7 metres of a channel which is extremely altered by hot spring activity. This channel also appears to be deformed or tilted, as the angle of repose of the sands is far greater than in natural occurrences. The gravels appear to be geologically very old, as their occurrence is far more complex than the later gravels of the Monte Christo or Eaglehawk deposits. Fragments of disrupted bedrock, previously shown to carry diamonds, are abundant in them.

The presence of unabraded diamonds in an ordinary river system is difficult to explain. Diamonds recovered previously from the underlying disrupted bedrock (Sample CD 2) show minimal abrasion and indicate little transport from their source.

This mode of occurrence suggests that the channel in which they were deposited was draining theimmediate area of the diamond’s primary source. That not all of the gravels were open cut suggests that the tunnels were targeting a higher grade source within the mountain. The river has cut down into disrupted bedrock which we are investigating as a primary diamond source. When other bulk samples taken from this pit are processed and evaluated, a further work program will be determined.

Peter Kennewell,
MANAGING DIRECTOR

31st May 2005
Copeton Shaft sample result

Processing of the sands from the basal 2.7 metres (48 to 50.7 metres) of the Copeton Shaft has been completed, with four white gem quality diamonds recovered. Total weight of the stones was 0.59 carats, and total tonnage of sands processed was 20.1 tonnes. Recovery of tracers (imitation diamonds) was 100%. The sample was treated through the Company’s small test plant, and processing was slow but careful. The diamonds recovered are shown in the accompanying photo.

The shaft penetrated stream-washed sands, but not the underlying gravels in which the diamonds are expected to occur. One of the few reliable descriptions of the diamond bearing rocks is given by Jules Joris, well known as one of Australia’s diamond pioneers. He stated in Walkabout Magazine (1939), that "actually this wash-dirt is found associated with water-worn gravels, occurring under various depths of stream-washed sand …. shafts are now sunk to reveal first a layer of basalt, then the stream drifts, and thirdly, the diamond bearing gravels on a granite bedrock".

It seems Cluff’s shaft has penetrated the stream drifts (stream washed sands), but that the underlying third rock type, diamond bearing gravels on a granite bedrock, was not present at this point. That this is the correct mining horizon is demonstrated by the presence of an old tunnel at this level. The tunnel was terminated, presumably because it had progressed out of the diamond bearing gravels, which are expected nearby, and to the north.

Now that the Company has a shaft which can access the diamond bearing level, it will drive a 2.5 by 2.5 metre tunnel for thirty metres northerly from the shaft. It is anticipated that the diamond bearing gravels beneath the stream drifts will be present here, as the old tunnel was coming from this direction. It appears to extend from the former Davis Shaft Mine, which was accessing the diamond bearing gravels.

Peter Kennewell,
MANAGING DIRECTOR

10th May 2005
Copeton Diamond Shaft completed - Target zone sampled

The Copeton diamond shaft has now been completed, extracting about 12 tonnes of sands and gravels from the target zone, including several large granite boulders up to 1.2 metres in diameter. The gravels have a thickness of over 1.5 metres and overlie hard granite basement, which is present below a depth of 50.6 metres. The underlying granite has been extracted for half a metre, to ensure no diamonds are lost in fractures in the basement.

Whilst old workings were not expected in this area, the shaft was revealed to be sunk immediately beyond the end of a tunnel dating from early last century, demonstrating that these gravels were part of the horizon being mined for production of several thousand carats of diamonds per year during that period. This seems to have been an exploratory tunnel, and the ground surrounding the shaft is unworked.

The timber supports and lining of the tunnel are also shown in the photo below. The location of the shaft in relation to the former workings is outlined on the accompanying figure.

The sands and gravels removed from the base of the shaft will be processed over the next few days to determine their diamond content.

The steel lining of the shaft has now been driven into the excavated granite basement to a depth of 51.2 metres, and the contract completed. A small crew of mining contractors is now being assembled by the Company, and access to additional mining equipment organised, to allow the further development work necessary for a full evaluation of the diamond potential of the gravels at the base of the shaft to be carried out by Cluff.

Peter Kennewell,
MANAGING DIRECTOR

6th May 2005
Placement to raise $544,000

The Company is pleased to announce that it has made a placement of 34 million ordinary shares in the Company at a price of 1.6 cents per share, together with 34 million attaching free options, each option being for the purchase of one ordinary share in the capital of the Company at an exercise price of 2 cents per share at any time up until June 30, 2008. The options will be unlisted. The placement will raise $544,000.

The shares and options will be issued to sophisticated and professional investors through Kefu Underwriters Pty Limited.

Funds received from the placement will be used for working capital.

Peter Kennewell,
MANAGING DIRECTOR

27th April 2005
Diamond target horizon reached in Copeton Shaft

Sinking of the 2.5 metre diameter Copeton diamond shaft is continuing. The shaft had been previously sunk to 48 metres, when wet and caving fine silt prevented deepening to the diamond target horizon and into the granite basement beneath.

It was decided to sink the last few metres through this wet fine silt zone and the diamond horizon by hammering the 8mm thick steel shaft lining downwards using a large hydraulic foundation pile driver. The rocks penetrated inside the lining could then be excavated safely. A new, reinforced shaft lining was fabricated and shipped to site, and 50 metre extensions to the pile driver’s hydraulic hoses were prepared to enable this innovative technique to be carried out.

The steel shaft lining was driven into the silt zone for 1.8 metres, at which point it encountered very hard rock through which it could not penetrate. On the assumption that this was the granite basement, hammering of the shaft lining was stopped, and the silt removed to reveal the top of this hard rock.

A small hole was then drilled through it, revealing that the hard rock is not granite basement. Sample recovery was poor due to the wet conditions, but it is a layer 0.7 metres thick, and contains rounded and polished pebbles up to 25 cm in diameter, and some coarse sand grains. The weathered top of the granite basement is present beneath.

This layer of hard rock is in the right geological position to be the diamond target horizon, and fits the description of the high grade diamond bearing horizon ("wash") from old literature. This rock type has not been penetrated by Cluff previously in the many years it has been operating on the Copeton diamond field, as it is obviously very hard to access.

Its nature will be confirmed within the next few days, when a bulk sample is extracted from a zone slightly wider than the steel shaft lining. The steel shaft lining will then be hammered through this zone until it reaches hard granite basement beneath, and will then be cemented in place, completing Stage One of the shaft development. No further problems are contemplated in finishing Stage 1 of the shaft.

Processing of the bulk sample through the Copeton plant to determine its diamond content is planned as soon as it is recovered.
The current situation at the shaft, showing the target horizon and the overlying silts, is illustrated in the figure below.



Peter Kennewell,
MANAGING DIRECTOR



21st April 2005
Forty One diamonds recovered at Bingara

Forty one gem quality diamonds have been recovered in the lower sample (Sample CD2) taken from the recently excavated pit at Craddock’s Mine. The largest stone was 0.48 carats and of yellow colour. Craddock’s Mine is on the Bingara diamond field, about 100 km west of Copeton. A sketch of the pit is shown below:

The diamond-bearing rock crops out at the surface, and was extracted to a depth of about six metres. It appears to be the rock extracted by open cut workings, probably during the 1890s. Some small excavations from the side of the pit into this formation are present, and were probably dug to sample the rocks. The host rock differed from the altered, broken and disrupted bedrock in which two diamonds were recently recovered, as it also contained sparse, very highly polished pebbles and 2 mm quartz grains.

Ninety four tonnes of disrupted bedrock were processed, yielding forty one diamonds weighing 5.89 carats. The grade recovered is 6.3 carats per hundred tonnes. Stones of a similar size and nature from the nearby Monte Christo pit have been sold previously by the company for $US 42.45 /carat. A 1.2 mm lower size cut off was used in the plant.

Cluff Resources Pacific NL produced 1,061 carats of gem quality diamonds from the Monte Christo Mine, located only one kilometre distant from this pit, during 1999/2000. This result throws some initial light on the nature of the source from which the 34,000 carats of gem quality diamonds previously mined during the 1890s were derived. Large tonnages of similar disrupted bedrock are known on the Bingara diamond field. This result clearly demonstrates that exploration is warranted to determine the potential of such rocks to host diamonds at grades suitable for modern large scale mining.

The diamonds recovered are shown in the photo below:



The diamond deposit is subject to an agreement with Diamond Ventures Exploration Pty Ltd whereby that Company receives a Net Profit Interest of 10% before DVE has received NPIs payments totalling $2 million, and 5% thereafter.

The information in this report that relates to exploration results is based on information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy included in a list promulgated by the ASX from time to time. Peter John Kennewell is a full time employee of Cluff Resources Pacific NL, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Identified Mineral Resources, and Ore Reserves". Peter John Kennewell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Peter Kennewell,
MANAGING DIRECTOR

20th April 2005
Diamonds present in disrupted bedrock at Bingara

Two gem quality diamonds have been recovered in the upper sample from the recently excavated bulk sample pit at Craddock’s Mine, at the Bingara diamond field, about 100 km west of Copeton. The diamonds occurred within altered, broken and disrupted bedrock in the upper level of the pit. A second, lower level sample has also been taken.

The diamonds occurred in a 28 tonne sample extracted from 2.5 metres to 6.5 metres depth, within a zone confirmed as altered, broken and disrupted shaly bedrock. There is a steeply dipping contact with the little disturbed surrounding bedrock shales. The zone appears to have been worked during the 1890s by an open pit, which was subsequently backfilled.

28 tonnes of breccia were processed (Sample CD 1), yielding one yellow diamond weighing 0.20 carat, and one white diamond of 0.09 carats weight.

The Bingara diamond field produced 34,000 carats of gem quality diamonds during the 1890s. Cluff Resources Pacific NL produced 1,061 carats of gem quality diamonds from the nearby Monte Christo Mine during 1999/2000. These stones were from an alluvial deposit which was excavated, seeking an underlying primary source for the stones. The present program continues the search to locate the primary source from which these Monte Christo diamonds were derived, and is located only one kilometre distant.

The Company finds this result very encouraging, as it confirms our geological model developed for the origin of the diamonds at Bingara, and demonstrates potential for the large tonnages of similar rocks on the Bingara field to host diamond deposits.

Peter Kennewell,
MANAGING DIRECTOR

19th April 2005
Diamond recovered from Copeton Shaft

The first sample to be processed from the Copeton diamond shaft has yielded one diamond.

The sample was mined from well above the target horizon, from 42 to 44 metres depth, at the level at which old workings were encountered during the shaft sinking. The target horizon is at 49 to 50 metres. Additional samples from 44 to 48 metres will be processed shortly.

Nine tonnes of sands were processed, yielding one white diamond of 0.21 carats weight.

Peter Kennewell,
MANAGING DIRECTOR

6th April 2005
Old mines exposed at Bingara

The bulk sampling pit at Craddock’s Mine, Bingara, has been completed, and two bulk samples of about sixty tonnes each have been taken. They are currently being trucked about 100 km to the Company’s processing plant at Mount Ross, Copeton, for treatment.

Cluff’s recently developed geological model for the origin and occurrence of the diamonds was confirmed, with a zone of altered, broken and disturbed bedrock up to six metres in thickness exposed. One bulk sample carries some small pebbles and quartz grains, while the other is barren of these. The pebbly material appeared to have been prospected in the past by a shaft, and subsequently extracted. The resultant hole was backfilled with loose rubble many years ago. Results of treatment of these two samples are expected shortly.

Rotary air blast drilling at the Upper Four Mile area, about a kilometre away was completed, with eleven holes drilled to depths up to thirty six metres. These showed horizontal former mine workings over a width exceeding eighty metres, and at a depth of about fifteen metres. The rock extracted was intersected in only one hole, where it is five metres thick and interpreted to be similar to that sampled at Craddock’s Mine. This result supports our new geological model. Further drilling is planned to determine the limits of this former mining to allow bulk sampling of the working face by a pit or shaft.

Historical records show diamond grades which would be economic today were being mined on the Bingara diamond field. These results indicate that the Company is exploring in the right areas, and we hope in the near future to demonstrate the former grades by re-sampling the working faces of several of these old mines.

Peter Kennewell,
MANAGING DIRECTOR

30th March 2005
Bulk sampling and drilling commences at Bingara

Craddock’s Mine, on the Bingara Diamond Field, was the site of a mining operation during the 1890s, with several tunnels and a small diamond pan operational. It is being re-evaluated by the Company in the light of our recently developed geological model for the origin and occurrence of the diamonds. Bulk sampling commences today.

Four rotary air blast drill holes to twenty five metres depth have recently been drilled at the mine site to reinterpret its geology, to confirm the presence and depth of the potentially diamond bearing horizon at the bulk sampling site, and to determine whether it has been worked at this site in the past.

Drilling showed it was four metres thick and of a horizontal nature. If diamonds occur within this horizon they are expected to be irregularly distributed, in high grade zones. It will be sampled by a bulk sampling pit twelve metres deep, and about one hundred tonnes of sample will be trucked to the Company’s Copeton plant for processing shortly.

Rotary air blast drilling is commencing this morning at the Upper Four Mile area, about a kilometre away, to similarly test the Company’s model, and to determine the depth to the target horizon and the extent of former mine workings in the area. This will allow planning for similar pits to be excavated in this area.

Peter Kennewell,
MANAGING DIRECTOR

21st March 2005
Deepening of Copeton Diamond Shaft

Pumping of water from the Copeton diamond shaft area is now steady, with a constant flow coming from the three dewatering bores. The water level in the surrounding area has been lowered to 48 metres, and stabilised. This is just above the diamond target horizon, which is at a depth of 49 to 50 metres with hard granite basement beneath.

Sinking of the shaft resumed on 18 March, and has now been deepened from a depth of 45.5 metres to 48 metres. Throughout this interval it penetrated fine silt which is self-supporting, but which below 48 metres becomes friable as it is water saturated.

Sinking has been suspended for a short time, while a review of potential sinking methods for lowering the steel lining through the two metres of soft silt is carried out. This will determine which of three alternative methods is most appropriate for the circumstances.

Only two metres of wet ground is present before the hard and easily mined granite basement is reached. This wet zone poses far less engineering problems than encountered previously, and sinking will resume when the review is completed.

Peter Kennewell,
MANAGING DIRECTOR

28th February 2005
Production to commence at Gloucester Ruby Project: Construction Certificate Issued

The Company is pleased to advise the issuing of the Construction Certificate for the Gloucester Ruby Project by Upper Hunter Shire Council, ensuring that mining operations are now able to commence.

Cluff has now met the requirements of all consent authorities with respect to the commencement of mining activities at the Ruby Project, and is readying its processing plant and infrastructure for production to proceed within a week.

The first area targeted for mining will be the Trench 4 area, where the Company has previously sourced the largest gemstones recovered at the Project to date. Throughput will be at the rate of 250 tonnes of ruby-bearing gravels per day.


Peter Kennewell,
MANAGING DIRECTOR

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