The Blue Rose prospect on EL 2938 is being explored for replacement type, Manto - style Cu-Au sulphide vein bodies in receptive host rocks adjacent to intrusive dykes and stocks inferred to exist on the northern side of the Anabama granite pluton (Target 2). Previously, RAB, aircore and RC drilling undertaken on a linear magnetic low anomaly at the Blue Rose prospect has been successful in defining broad zones of copper oxide mineralisation over a total strike length in excess of 750 m, with additional isolated similar and significant mineralised intersections being disclosed a further 1000 m west and 400 m east. Thus the total strike length of the prospective sequence is considered to be in excess of 2000 m, and its width at least 1 km. Recent RC drilling, to probe beneath the copper oxide zones to investigate a discrete zone of IP chargeability, has been variably successful in defining a sulphide source to the oxide mineralisation, with intersections such as 48m @ 0.82% Cu and 1.01 g/t Au being made in hole RCBR030 below 84 m depth. To date the geological modelling of the Blue Rose prospect has been inhibited by a lack of reliably orientated geological data. The prospect lies beneath a thin calcrete horizon, which in this area totally masks the Neoproterozoic host sequence of pelites, schists and calc-silicate rocks. Outcrop in the region is poor and equivocal and cannot be reliably extrapolated into the prospect area. In addition, geological interpretation of cross sections of drillhole data obtained throughout the prospect area has been hampered by the lack of discrete recognisable geological units that can be correlated between holes and from section to section. Hence the orientation of the host sequence and the orientation of the sulphide mineralisation at Blue Rose was not known prior to the latest diamond drilling carried out via the subject PACE Initiative - funded programme. The aim of the PACE diamond drilling was to obtain orientated drill core of the sulphide - mineralised host sequence that would define the dip and strike of bedding, plus rock fabrics, veining and alteration, so allowing better targeting of postulated Manto -style copper-gold-molybdenum sulphide mineralisation. Pacific Magnesium Corp. as operator for the EL 2938 Joint Venture completed a total of three subsidised drillholes for 354.35 m of diamond drilling, plus 134.05 m of RC precollar. The final amount of metres drilled was less than originally proposed due to excessive contract drilling costs related to very poor ground conditions encountered during the programme. Nevertheless, the PACE drilling was successful in defining the orientation of bedding and of progenitor monzonite dykes as well as new sulphide veins, and these results will be useful in targeting future drilling at the prospect. Holes BRDD001 and BRDD002 were drilled as diamond tails to existing RC holes BRRC035 and BRRC029 respectively, with the specific aim of obtaining orientated drill cores. However, the orientated drill cores that were recovered from BRDD001 and BRDD002 showed that, although the holes were correctly orientated to intersect the monzonite porphyry dykes that are the interpreted source of copper, gold and molybdenum mineralisation, for the most part these holes intersected a non-prospective quartzite sequence of rocks that dips parallel to the drillhole trajectories due to folding of the rock package. The final portion of hole BRDD001 actually did reach the prospective skarn sequence, with the last 24 m of hole averaging 0.2% copper. Future drilling will now be able to account for the folding and the orientation of the previously unknown barren rock sequence. Hole BRDD003, drilled 100 m to the west of hole BRRC030, intersected the interpreted western extension to the good quality sulphide mineralisation found earlier in that hole. The additional copper, gold and molybdenum mineralisation encountered in BRDD003 is associated with a skarn - altered rock sequence over a 127.3 m thick interval, from 94.4-221.7 m downhole depth. Better intersections from within this zone include: 10.0 m @ 0.64% Cu, 0.25 g/t Au; 13.8 m @ 0.1% Mo (0.88% copper equivalent); and 14.5 m @ 0.6% Cu, 0.12 g/t Au. The new hole was abandoned prematurely due to hole collapse in altered copper - rich (>0.1% Cu) rocks. Sulphide mineralisation remains open and untested to the west and south, beneath an ore grade copper oxide zone that extends over a strike length of more than 600 m, as defined by previous shallow aircore drilling. Further drilling is required to evaluate this promising sulphide occurrence.