In a search for possible diamonds and their kimberlite hosts that was undertaken within a large area centred ~60 km east of Peterborough, a preliminary literature review and photo-lineament analysis was conducted, next leading to field reconnaissance soil geochemical sampling for kimberlite indicator elements in the vicinity of interpreted structural features mapped at 1:100k scale (23 samples collected). Follow-up drainage gravel and loam heavy mineral sampling (199 x 20 kg bulk samples collected, with corresponding minus 80 mesh soil geochemical samples) gave conflicting results: mineralogical analyses of the bulk sample HM concentrates looking for kimberlite indicator mineral grains proved negative, but the soil assaying yielded moderate to strongly anomalous values for zirconium, yttrium, niobium and strontium (max. 855 ppm Zr, 145 ppm Sr, 110 ppm Y, 55 ppm Nb and 60 ppm U). Fourteen target locations were selected for re-sampling. A further 120 separate gravel bulk mineralogical and soil fraction geochemical samples totalling 1260 kg were collected during the second licence year, which again yielded high strontium, zirconium and yttrium assay values, but contained no observable kimberlite indicator minerals. However, subsequent detailed field mapping failed to delineate the source(s) of the anomalously high trace metal values. Following promising results obtained from initial grab geochemical sampling of two quartz reefs found in the south of the licence area, a separate programme of gold exploration, targeting an interpreted shear zone close to the axis of the Pualco Anticline, consisted of reconnaissance and detailed, 1:63,360 scale geological mapping plus grid-based rock chip sampling of fold axis fault breccia gossanous quartz veins (100 samples assayed). However, the check geochemical results were disappointing, returning an average of only 1.36 ppm Au. To further investigate the Terowie gold prospect at depth, diamond drilling of 3 NQ cored angled holes totalling 240.4 m was done during March-April 1981, aiming to intersect the mineralised zones at ~60 m depth; each hole intersected ?Pualco Tillite containing minor zones of disseminated sulphides. Hole TDD1 that was sited to appraise the standout gossan containing 8.8 ppm Au at surface intersected a vuggy quartz zone 2 m wide at 77 m depth. No visible gold was present, but chalcopyrite and arsenopyrite were recorded on the litholog. Apart from a few minor elevated arsenic and copper values, all other core sampling trace metal assay results were in the low background range, including gold which returned <0.05 ppm. No further work was undertaken on the subject licence, although it was renewed for twelve months on 5/10/1981, as EL 896. Because the perceived prospectivity for finding bedrock - hosted stratiform gold in this area was downgraded, and the optimum area to retain for ongoing diamond search remained indeterminate, the licensee decided in March 1982 to fully surrender tenure.