Southern Gold Ltd, in joint venture with Hindmarsh Resources, has drilled four vertical RAB with diamond tail holes on Exploration Licence 3158 from October to November 2005 as part of the PACE Initiative Year 2 programme. Its objective was to test a north-northeast - trending, 1 km diameter, 6 mGal basement residual gravity feature with associated buried conductive bodies, known as the Victory prospect. This target, the top of which was modelled to lie at around 100 m below the surface, appeared to have gravity, geology and geochemical attributes that are similar to those of iron oxide - associated copper-gold (IOCG) deposits elsewhere in the Gawler Craton. Southern Gold is presently exploring the southern margin of the Gawler Range Volcanics for possible such occurrences of IOCG mineralisation. As part of the Victory project work, contractor Underdale Drillers completed a total of 1109 m of PACE-subsidised drilling, comprising 315 m of open hole RAB pre-collars and 793.8 m of diamond coring (HQ and NQ), with the drillhole total depths ranging between 413.3 m (hole VP05-001) and 128.4 m (VP05-0004). The gravity feature, which was specifically tested by drillholes VP05-001, 002 and 004, appears to originate from a thick, stratified succession of variably deformed basalt containing some moderate development of sulphide veins, quartz-garnet veining, and zones of pervasive sericite-chorite alteration. The dip and deformation of this metabasalt, in the context of its contact relationship with the Cook Gap Schist, strongly suggests that it is a larger equivalent of the many concordant amphibolite bodies which occur throughout the Cleve Subdomain. One of the target conductive bodies, which was earlier detected by MIM when using its MIMDAS induced polarisation geophysical survey methodology, has been shown by drill hole VP05-003 to comprise graphitic and sulphidic shales and metasediments, probably belonging to the Hutchison Group. Assaying of selected portions of drill cores has shown only low levels of gold, with the best assay of 76 ppb Au obtained from the depth interval 61.9-62.9 m in VP05-004, in an amphibolite-rich metabasalt. Best assays of other metals include the following: 4250 ppm Zn in graphitic psammite from the interval 176.2-176.9 m in VP05-003; 800 ppm in a quartz-garnet vein from 85-86 m in VP05-004, and 21.5 ppm U in a quartz psammite from 201.5-202.2 m in VP05-003. Samples from drillhole VP05-003 are elevated in many mafic rock-forming metals, and contain the highest levels of nickel (1000-1450 ppm), chromium (230-2150 ppm), magnesium (54800-11400 ppm), manganese (4150-5400 ppm) and titanium 19200-21100 ppm) so far seen in this area.