The subject EL 3391 is located in the eastern Lake Frome region, and is prospective for roll-front type uranium mineralisation emplaced within sediments of the Tertiary Lake Eyre Basin. In December 2006, as part of the PACE Initiative Year 3 subsidised drilling approved projects, Scimitar Resources undertook a rotary mud drilling programme designed to follow-up previously identified buried uranium mineralisation (having downhole radioactivity measured at up to 390 counts per second) existing within the upper Eyre Formation sands in the Carnanto Palaeochannel. 18 vertical open rotary mud holes were drilled for a penetration total of 2502 m, with an average hole depth of 140 m. The holes were generally drilled on an 800 m spacing along traverse lines 1200 m apart. All holes were wireline logged with a gamma tool, and 2 m composite drill cuttings samples were collected for subsequent study. The drilling intersected a terrestrial sedimentary section comprising up to 8 m of Recent gypsiferous dune sands overlying up to 140 m combined thickness of the Tertiary Namba and Eyre Formations (the primary target for roll-front uranium mineralisation within EL 3391), below which marine sediments of the interpreted Cretaceous Marree Subgroup were encountered. Results from the drilling are still being evaluated, but initial indications hold promise. The subsurface geological logging has further improved understanding of the complex redox fronts present within the Carnanto Palaeochannel, where information derived from the latest drillholes has delineated both reduced and oxidised environments within the sand units of the interpreted Namba and Eyre Formations, and has identified a number of partially oxidised sand units of interest within the interpreted Eyre Formation interval. The downhole gamma logs have confirmed previously intersected anomalous uranium readings, and have extended their occurrence within the palaeochannel. Average background radiation is of the order of 10-40 cps, with a maximum reading of 790 cps (190 ppm eU3O8) recorded over one 5 cm thick composite interval, while the highest reading obtained was 826 cps from 103.25 m depth in hole GNC09.