Significant amounts of gold and silver have recently been discovered within the rocks of the historical Kapunda mine area. Assaying of surface grab samples and of diamond drill cores (28 samples) has yielded an average precious metal content of 2.5 dwts/ton Au and 3.5 dwts/ton Ag (equivalent to 3.85 ppm and 5.38 ppm respectively). The full range of gold assay values is between 0.6 and 10 dwts/ton. The gold persists throughout the exposed zone of copper mineralisation, and is also present down to a depth of 600 feet, as has been established by chip sampling all of the diamond drill cores available from the only deep drillhole completed within the mine area (Mines Exploration' DDH KP1, completed at TD 1021 feet 3 inches in July 1965 to test the K1 IP anomaly). Preliminary mineragraphic studies indicate that the gold is associated with pyrite and, to a lesser extent, with quartz gangue. In view of these findings, an ongoing exploration programme has been set out that is designed to obtain further information about the gold potential of Kapunda.