Red Metal Limited, as operator of Adelaide Exploration's Moonta joint venture through a strategic alliance with Phelps Dodge Australasia Inc., in March 2005 gained PIRSA's approval for PACE Initiative Year One funding of a deep diamond drillhole in EL 2885, to test a large gravity low anomaly within the Alford structural corridor that was seen to be associated with elevated Cu +/- Au calcrete soil geochemistry. The new drillhole was sited near some previous explorer's drillholes which had intersected deep weathered, weakly copper mineralised basement rocks of a type regarded by Red Metal as characteristic of leached lithocaps found above porphyry copper deposits in Chile and the western USA. As well, the Moonta joint venture's former reviews of the Moonta - Wallaroo region historical mineral exploration data and regional geophysics had suggested that strong potential exists for development of a giant Fe-oxide copper gold mineralising system within the project area, analogous in style to those systems discovered surrounding the Olympic Dam and Ernest Henry mines. A single inclined diamond drillhole, MPD-05-18, was completed by Red Metal during May-June 2005 into the strong gravity low mapped as lying immediately south of old hole NBH DDH121A. The subject drillhole was collared approximately 180 m east of DDH121A, and pre-collared 80 m into the regolith using rotary mud methods, before commencing diamond coring. It intersected a thick sequence of poorly bedded to massive, predominantly feldspathic metasediments in the upper portion of the pre-Adelaidean basement section penetrated, while more finely laminated, quartz-rich, metapelitic units were found dominating the lower portion. Sulphide mineralisation occurs throughout the drillhole core in dispersed veins and stockworks, with the density of veining and recorded level of copper mineralisation strongest within the lower part of the massive feldspathic sequence (best interval 378-442 m @ 0.08% Cu). The copper exists as chalcopyrite, formed mainly within carbonate ± biotite veins, but also as disseminations within intense carbonate - altered intervals. Minerals associated with the chalcopyrite include pyrite, fluorite and molybdenite. Current geophysical interpretation suggests that the targeted strong gravity low is a result of preferential weathering of the intense carbonate - sulphide and carbonate - actinolite alteration and brecciation in the bedrock, which appears to be focussed at the boundary between the feldspathic metasediment unit and the lower quartz-rich metapelite rocks. Drill core samples assaying returned a broad zone of low order Cu +/- Mo content extending through the lower part of the feldspathic sequence. Other low order Cu values also occur near the end of the hole, at 656.7 m depth (16.7 m @ 0.12% Cu below 640 m). However, no economic levels of copper were intersected by the drilling. Petrological examination of selected drill core intervals is now in progress. An aircore drilling programme has also been completed to test the prospective boundary of the feldspathic unit at a number of areas along strike from hole MPD05-18. Downhole bedrock assay results for the aircore drill samples are pending. Trial IP surveying too is being considered, prior to making a decision on whether to attempt additional diamond drilling within the area. The dispersed sub-economic copper mineralisation observed within carbonate-biotite-potash feldspar breccias that have developed in feldspathic host rocks is now considered to represent a new carbonate-sulphide, low iron oxide style of IOCG mineralisation. It is consequently envisaged that potential exists for finding economic concentrations of copper in this geological setting within any of the Moonta-Wallaroo region, Gawler Craton and Curnamona Province.