Previous exploratory work by Grenfell Resources and Gravity Capital at the Soyuz prospect in the Carnding area, located approximately 25 km west-northwest of Tarcoola, has included ground magnetic, gravity and soil sampling programmes that defined a number of magnetic anomalies and coincident Cu-in-soil and gravity anomalies which were subsequently sporadically tested by these companies in phases of shallow RAB, aircore hammer and reverse circulation drilling. These drill programmes intersected anomalous (>0.1 ppm Au) to highly anomalous (>10 g/t Au) Au over variable widths that defined a "central high-grade gold zone" (CGZ) and a number of other mineralised trends considered worthy of further follow-up deep RC drilling. The Soyuz prospect had originally been defined by Grenfell Resources on the basis of an extensive elongate aeromagnetic anomaly that was seen to lie to the south-east of known Cu-Au mineralisation associated with magnetite development at the Mir prospect. In April 2005, the current EL 3369 operator Stellar Resources Ltd was granted PACE Initiative funding to help it undertake a series of deep RC drilling traverses to test the depth and strike continuity of the CGZ and to test two secondary targets, primarily a coincident soil copper and gravity anomaly to the north-east of the CGZ, and a local magnetic high to the north-west. All three target areas were regarded as having good prospectivity for economic mineralisation, with the known high-grade gold intersections possibly representing distal vein occurrences to iron oxide - associated Cu-Au style (IOCG) mineralisation associated with the geophysical targets. 18 inclined RC drillholes were completed along 6 traverses for a total penetration of 1750 m during the period March-April 2006. The PACE project RC drilling within the CGZ intersected only narrow mineralised intervals (max 2 m @ 4.4 g/t Au) beneath the previous high-grade gold intercepts. This drilling also intersected broader zones of weak gold mineralisation, including 48 m @ 0.15 g/t Au. Testing of the coincident Cu-gravity anomaly returned only elevated Cu values and weakly mineralised Au intervals. Drilling of the main magnetic feature returned anomalous Au values (max 2 m @ 2.2 g/t Au) within selvedge to intense K-silicate (magnetite-biotite) alteration. The drilling information obtained at Soyuz to date indicates a possible intrusion-related/hosted gold system within an interpreted multiphase intrusive complex that has intruded Mulgathing Complex Kenella Gneiss. Mineralisation appears to be predominantly associated with the occurrence of disseminated fine-grained pyrite within variably altered, highly mafic intrusive quartz monzonites and/or quartz diorites, granites and possible granodiorite. Minor gold was also noted as occurring in the selvedge to intense K-silicate (magnetite-biotite) alteration. Although orogenic lode gold deposits are noted at Glenloth and Earea Dam (Ferris et al, 2003), no distinguishable quartz veining is associated with mineralised intersections at Soyuz. Gold intersections show a variable metal assemblage that combines Au with Ag and to lesser degrees with Cu, Pb, Zn and Mo, but not Bi or Sb. It is planned that further evaluation of the Soyuz prospect will be undertaken. At least 2 diamond drillholes, one beneath the CGZ and a second under the main magnetic anomaly, are needed in order to obtain data on alteration styles/relationships and the distribution of pyrite, on possible structural controls (if any) on the distribution of mineralisation, and on the relationship of various intrusive phases.