Work carried out at the Ajax and Waukaringa mine prospects included an aerial reconnaissance, grab sampling of mine tailings heaps and limited detailed stream sediment sampling plus, at the Ajax prospect, the drilling of 5 vertical rotary percussion stepout holes for a total penetration of 820 feet 5 inches, which included 40 feet 2 inches of diamond coring. The general character and subsurface geological setting of the Ajax mine lode is described, as deduced from the drill core information. No significant geochemical anomalies were detected by the surface sampling. The drilling has shown that the mine lode is a conformable narrow (to an estimated 5 feet thick) horizon lying within 390 feet of the base of the Adelaidean Tarcowie Siltstone, and not within the underlying Cox Sandstone Member of the uppermost Tapley Hill Formation, as had previously been reported. The lode is predominantly composed of dark reddish limonitic boxworks after pyrite-arsenopyrite, with near conformable quartz veins bearing sub-microscopic finely disseminated gold. A magnetic anomaly delineated during an earlier ground magnetic survey conducted by the University of Adelaide geophysicists indicates that there may be a continuous ore zone, perhaps corresponding to a sedimentary facies amenable to ore accumulation, that extends right across the local syncline between Ajax and Waukaringa.