Following the recent discovery by Nissho-Iwai Co. in its ELs 48 and 195 of a buried Tertiary palaeochannel system containing uranium-bearing carbonaceous sediments, two further ELs 268 and 360 were taken out on the same area 40-60 km north-west of Tarcoola to conduct drilling programmes for determining the extent of the prospective sediments and the economic potential of their contained uranium. Open hole rotary drilling (36 holes aggregating 1798 m) on a roughly 500 m x 1 km grid in EL 360 has disclosed a main channel up to 80 m deep which apparently flowed from the NW to SE, changing to eastwards near Malbooma, and having an increasing carbonaceous fill component in a downstream direction, including lacustrine lignites up to 10 m thick. Within it and its lesser tributaries, uranium-bearing sediments are present over an area of approximately 25 square km, which extends southwards into the adjoining EL 268. From results of radioactivity logging and analyses of 103 samples of drilling slimes, low to moderate uranium anomalism is present over depth intervals of 0.5-2.5 m in 11 of the drillholes (best result 4200 counts per minute = 0.09% U3O8 in hole TM 418), associated with carbonaceous material occurring at or near the contact between a lowermost sandstone-arkose unit, and an uppermost mudstone-fine sandstone unit, about 30 m below the land surface. In the licensee's opinion the current drillhole density does not allow it to make accurate estimates of resource tonnage; however, several individual small deposits of 1000 to 2000 tonnes of uranium at an average grade of 0.03-0.04% U3O8 appear likely to exist within an area of 7 square km having an average mineralised sediment thickness of 1.5 to 2 m. Further infill open hole drilling to 50 x 200 m spacing, plus core drilling in the areas of the main radioactive anomalies, is now envisaged in order to establish the extent, grade and continuity of channel mineralisation, as well as deriving parameters relating to the possibility of utilising solution mining techniques.