The programme of uranium exploration described in this report commence on 18/5/1954, following the discovery of three separate occurrences of uraniferous gneiss near Port Lincoln township by local resident Mr J. Gibson. The largest of these outcrops, now known as the Hospital prospect (formerly the Gibson No. 1 prospect), was inspected and tested for surface radioactivity by Departmental officers, and the outcome was regarded as sufficiently promising to warrant further investigation at depth by diamond drilling. This decision to drill the occurrence triggered the grant by the SA Government to Mr Gibson of a uranium discovery reward for successful prospecting by a private individual. An initial programme of diamond drilling has now been done, for which 1 vertical and 6 inclined holes for a total penetration of 866 feet were completed during the period August to October 1954. A small but sub-economic uranium orebody was outlined, measuring 160 feet long and 10 feet thick, which persists to ~50 feet deep in the subsurface. An estimated total of 5700 long tons of ore averaging in grade between 2 and 3 pounds of U3O8 per ton was established. The deposit forms a steeply dipping, concordant body within a massive hornblende-rich granitoid gneiss unit that forms part of a local Archaean basement complex of granitic and amphibolitic metasediments. The uranium mineralisation was identified as tiny grains of pitchblende that are thinly disseminated throughout the matrix of the gneiss, with their oxidation and hydration products, the secondary uranium mineral species uranophane and gummite, being similarly distributed and also present within foliation partings and as coatings on minor mylonitic fractures. Drilling of the other prospects nearby in the district has been postponed in favour of conducting further surface mapping and scintillometer surveys to detail the areas between the presently known similar radioactive outcrops.