The Clermont Gold Project is situated to the south, west and northwest of the town of Clermont in central Queensland. Diatreme is exploring for porhyry and stratabound bulk tonnage copper/gold targets. The project area covers numerous prospects including Rosevale Project and the former Peak Downs Copper Mine.

Previous metalliferous mining activity in the region included gold mining predominantly from placers in Permian conglomerates and from Tertiary and Cainozoic alluvial deposits. Gold was discovered in gullies to the south of Clermont township in 1861. By 1862 mining extended from McDonalds Flat in the southeast to Hurley's Lead in the northwest. The main centres of alluvial mining were in the area adjacent to the Clermont township. Between 1877 and 1901, recorded gold production amounted to 5 458 kg from deep leads and other alluvial sources and only 308 kg from quartz lodes. Production peaked in 1898 when the Wild Cat Lead was the principal producer. Production from the Clermont Goldfield during the period 1862 to 1901 is documented as 8 200 kg of gold.

Mining activity declined after 1910 and by the 1920s had almost ceased. In 1931 a new lead, discovered at Miclere, sparked a revival of mining, which continued through to the mid 1950s. During the 1980s and early 1990s small to medium-scale alluvial mining was carried out at McDonalds Flat, Bathampton, and Expedition Creek. Total gold production for the Clermont area to 1993 is estimated to be about 14 000 kg.

Copper was mined at the Peak Downs Copper Mine following its discovery in 1863 and during the period to 1877, 17 000 tonnes of copper (100 000 tonnes @ 17% copper ore) is reported to have been produced from the mining and smelting operations on site. The Peak Downs mine workings lie within the Bathampton Metamorphics.

The Project is proving to be highly prospective. Three main targets are under investigation:

Rosevale Project (gold, copper-molybdenum)

Mesothermal gold reefs; and

Regional VTEM and Banded Iron Formation (BIF) targets

Rosevale Project

Following on from discovery in 2008, Diatreme has further enhanced the prospect for the RPC to host significant mineralisation. Work has included deep diamond core drilling which has assisted in identifying porphyry related copper/molybdenum and breccia hosted silver/lead/zinc/gold mineralisation. The area is now subject to investigation under a farm-in arrangement with Antofagasta Minerals.

Mesothermal gold reefs (Palm Trees)

In the latter part of 2009, and using available historical data and previously collected VTEM and ground magnetic survey data, Diatreme outlined an area immediately south of Clermont with the potential to host multi-million ounce mesothermal reefs "mother lode" style narrow vein gold mineralisation similar to the Charters Towers goldfield and the central Victorian goldfield. Ground geophysics will aid the Company in developing future drill targets for follow-up exploration.

Regional VTEM and Banded Iron Formation (BIF) targets

Diatreme holds a significant VTEM database covering areas of banded iron formations, particularly in respect to the mapping out of zones of potential major stockworking and mesothermal reef development. Targeted drilling programs will be undertaken to evaluate prospective areas.