As part of the PACE Initiative Year 3 subsidised drilling programmes, Minotaur Exploration proposed exploring a large tenement package in the Streaky Bay area simultaneously for Prominent Hill style iron oxide copper gold (IOCG) and palaeochannel hosted uranium mineralisation. Within the company's tenements, sixteen IOCG targets had been generated through interpretation of data from a recent PIRSA PACE gravity survey, supplemented by Minotaur gravity data. The large number of high frequency, near surface gravity anomalies presented an opportunity for cost-effective drill testing utilising an aircore-hammer drill rig. In the approved PACE programme, thirteen of the IOCG targets were drilled. The other three planned targets were not drilled due to difficulties of gaining access within the Kulliparu Conservation Reserve and Park. A number of palaeochannels with uranium potential also cut across the tenement areas. Recent advances in geophysical processing have allowed more accurate mapping of the course of the palaeochannels using a combination of thermal imagery, gravity, elevation and drillhole data. Minotaur has lately tested and confirmed a new procedure of microgravity traversing at selected traverses across the interpreted channels, intended to locate the deeper channel thalweg, thereby allowing direct drill targeting of the masked main trunk channel. For its PACE Year 3 uranium target investigations, Minotaur proposed to use the same contracted aircore drill rig to drill a traverse across the trunk channel, and in each resulting hole a slim line gamma probe would be sent down through the drill stem to provide a highly accurate, high resolution radiometric record of the palaeochannel strata penetrated. Ten areas were selected for such microgravity traversing and drill testing. Drilling of the basement IOCG targets (involving 13 gravity anomalies, 38 holes and 2306 m total penetration) during March-April 2006 encountered a variety of Proterozoic lithologies including granite, quartz-biotite gneiss and gabbro. No alteration typically associated with IOCG mineralisation was observed, and no anomalous assays were returned. Palaeochannel drilling (7 traverses, 72 holes for an aggregate 5570 m) during April-July 2006 returned anomalous gamma results from three palaeochannels. Traverse 5 over the newly named Kottata Palaeochannel returned anomalous gamma values (200 - >600 cps) over a 500 m interval across the channel, plus anomalous U3O8 equivalent assays up to 271 ppm. Drilling over the Yaninee Palaeochannel returned low order gamma and uranium anomalies. Anomalous gamma values were also returned from Traverse 1, but these were not accompanied by any anomalous uranium assays. Because its drilling of IOCG targets failed to intersect any alteration typical of Prominent Hill style haematite breccia - associated mineralisation, Minotaur concluded that the lack of this feature, together with the absence of any significant geochemical anomalism, has downgraded the potential for finding iron oxide hosted mineralised bodies within the area. The company now thinks that the gravity anomalies are likely to be due to basement highs and/or the presence of gabbros and other mafic bodies. The palaeochannel uranium exploration drilling has successfully located anomalous gamma radiation and uranium assays within the previously untested Kottata Palaeochannel. The Kottata Palaeochannel is presently the subject of ongoing exploration by Minotaur associate Toro Energy Pty Ltd.