A high-resolution 100 m line spaced aeromagnetic/radiometric survey conducted in October 2006 by UTS Geophysics for InterMet Resources over its EL 3314, located immediately north of Coffin Bay, revealed prominent N-S trending linear magnetic features which were interpreted to represent possible mafic or iron-rich units of the Archaean, predominantly felsic Hall Bay Volcanics, mineralised rocks that occur in adjoining areas. As an approved PACE Initiative Year 3 project, 33 holes (2 rotary mud, 21 aircore or RAB and 10 RC) totalling 1289 m were drilled to test the lithology of these features, which were inferred to have good VHMS type base metals potential if they had a felsic volcanic origin, and excellent nickel and gold potential if they were sourced by Archaean komatiitic greenstone strata. From the geophysical perspective, EL 3314 appeared to contain at least an 80 km strike length of prospective magnetostratigraphic units, with a strong possibility of structural repetition of such units. Most of the PACE drillholes penetrated granites and gneiss with interlayered biotite schists and amphibolites, interpreted to be part of the Archaean Wangary Gneiss, although drillholes COU003, COU004 and COU032 penetrated recognisable granite of the Moody Suite. All of the drillhole sample assay results were disappointing, with only low-level zinc concentrations(up to 0.22% Zn) returned from hole COU031.