A programme of five diamond drillholes totalling 1740.6 m has recently been completed on EL 3445 at the Kangaroo Dam prospect, to follow up anomalous platinum and palladium metal values encountered within the Palaeoproterozoic metasedimentary basement by licensee Goldstream Mining in its drillhole KDRC001 in late 2004, on prior EL 2760. This follow-up work was partially funded by PIRSA as a PACE Initiative Year 2 collaborative drilling project. The PGE mineralisation (20 m @ 0.54 ppm Pd + 0.05 ppm Pt) flanks one of a series of gravity highs forming a gravity ridge that is interpreted to arise from a buried mafic intrusive body. The latest traverse of drillholes, laid out at and adjacent to the KDRC001 location across the interpreted steep southerly dip direction, aiming to look beneath the PGE anomaly, penetrated a similar basement sequence of high-grade felsic to mafic orthogneisses and quartz-plagioclase-garnet - rich gneisses showing patchy 'mafic skarn' alteration. Drillcore assay values for most holes were low although still anomalous in PGE, with the exception of hole KDD003 which intersected similar grades of mineralisation to those found in KDDRC001, e.g. having 22 m @ 0.91 ppm PGE (Pd+Pt+Au) below 148 m depth, including higher grade intervals of 2 m @ 1.94 ppm PGE from 151 m depth, and 6 m @ 1.15 ppm PGE from 160 m depth. The mineralisation seen in the KDD003 core occurs within discordant pyrrhotite-biotite(+ pyrite) veining associated with strong, coarse-grained pyroxene-amphibolte alteration that appears to post-date formation of the host rock's layering and cleavage. The pyrrhotite content in the drill core approaches 10% over the depth interval 152-153 m, where the highest PGE assays were obtained. Sited 100 m to the west of KDRC001, hole KDD005 intersected an alteration zone of similar width to the alteration associated with the PGE mineralisation in KDRC001 and KDD003, however, the sulphide and PGE content is much lower. Structural logging of KDD003 and part of KDD002 has shown an overall north-easterly dip to the gneissic sequence. This is consistent with the north-westerly trends in the aeromagnetic data of this area. Planar biotite±pyrrhotite±pyrite±quartz veinlets, and younger unfoliated granitoid dykes, have an overall moderate dip to the south. Further detailed logging of cores recovered in the other diamond holes is required to determine the dip of the PGE mineralisation. Hole KDD001 was located on the northern end of the PACE drilling traverse and was declined northwards through the peak of the broad gravity high anomaly. It intersected a variable package of quartzites, quartz-garnet gneiss, amphibolites and mafic gneisses, and garnetiferous gneiss with a substantial mafic component. While variable, the basement section intersected is dominated by siliceous / quartzose lithologies in its upper part, and is mainly composed of mafics and garnet-amphibole-biotite assemblages in the lower portion. Apart from minor, narrow gabbroic intrusives, there are no large obvious mafic bodies. All cored basement lithologies, aside from some minor dykes, appear to be pre or syn-tectonic, and it is concluded that the bulk of the gravity anomaly can be attributed to the abundant garnet and mafic-rich rock mineralogy. The association of significant amounts of pyrrhotite with the PGE mineralisation means that EM may be a useful tool for targeting additional drilling. Previous ground EM data collected by Anglo American Exploration over the area is currently being reprocessed to determine whether subtle conductors are present that may be viable drill targets.