In the area of the Black Hill Cambro-Ordovician layered basic intrusive complex located between Cambrai, Swan Reach and Florieton, Inco Resources identified six geophysical (density contrast and magnetic) anomalies, interpreted as being closely associated with an inferred prospective buried geological horizon, which were subsequently chosen for PACE Initiative Year 2 subsidised drill testing based on the Voisey's Bay mineralisation model analogue. The primary objective of the drill holes was to either directly intersect nickel sulphide mineralisation, or to identify some evidence of an effective mineralising process that might be associated with a sulphidic sediment / mafic intrusive contact. Following PIRSA approval of the project scope, 4 rotary mud precollar/NQ2 diamond core holes totalling 834 m (including 489.8 m of coring) were put down at the Cambrai North and Landmark SW prospects, and all encountered Black Hills Gabbroic Complex mafic lithologies, but without any encouraging evidence of mineralisation. A further 2 holes totalling 524.4 m (403.3 m cored) were drilled at the Bower prospect. Here one drillhole encountered Black Hills Gabbroic Complex mafic lithologies, but these carried only trace amounts of sulphide mineralisation (pyrite-pyrrhotite-chalcopyrite-?pentlandite) returning no anomalous metal assay values, which did not provide any real encouragement. The second drillhole failed to find any mafic rock, but penetrated only dolomitic metasediments. Inco is now in the process of reviewing the Black Hill JV Project exploration strategy and future standing.