EL 3511 licensee Debnal and its joint venture partner Venture Minerals are exploring an area of the eastern Gawler Craton having a predicted high potential for the discovery of Olympic Dam type iron oxide - associated copper-gold-uranium (IOCG-U) deposits. The area is underlain by two large regional gravity ridges currently interpreted as possible volcanic breccia/caldera structures formed within the now deeply buried Gawler Range Volcanics (GRV) sequence. The joint venture initially planned to test a large (5-10 mGal, 10 km diameter) gravity anomaly evident near Churchill Dam, which is intersected by orthogonal north-east and north-west trending gravity lineaments, and has a semi-coincident magnetic high anomaly at its northern end. Because of the thick Adelaidean and Pandurra Formation cover sequence in this area, it was planned to drill vertical RC/diamond holes to approximately 1000+ m depth to effectively examine the pre-Pandurra basement geology. After performing geophysical modelling and interpretation, four drilling sites were selected near Churchill Dam. PACE Initiative Year 3 programme funding was granted to assist with the drilling of the first exploratory hole, which was put down at a location overlying a WNW-trending, 1700 m x 500 m residual gravity high seen near the eastern edge of the main gravity ridge. This hole, CHRCD001, was RC-precollared and diamond drilled to a total depth of 1146.4 m during January-February 2007, terminating within Mesoproterozoic basement (altered GRV) which was penetrated at a depth of 803.5 m. An interval of brecciated GRV with varying amounts of hematite ± carbonate ± silica ± sericite ± chlorite alteration was intersected between 836 to 966 m depth. A further 20 m thick zone of brecciated and haematite-altered GRV was intersected further downhole, from 1008 to 1028 m depth. While only trace amounts of pyrite and possibly of chalcopyrite mineralisation were observed in the recovered drill core, the presence of broad alteration zones and of hydrothermal brecciation exhibiting the correct style are considered highly encouraging, and are suggestive that the GRV at Churchill Dam could host a significant sulphide - mineralised IOCG-U deposit. The lower Pandurra Formation and all of the drilled GRV section have been sampled for multielement assaying and petrological examination. A broad zone of low-level rare earth element (REE), U, Cu, W and Ba geochemical anomalism, approximately 50 m wide, was found associated with the unconformity between the GRV and the overlying Pandurra Formation. Spikes of low level REE, U and Cu anomalism were also noted within haematite-altered, brecciated GRV lying between 900 and 966 m depth. The source of the large gravity anomaly at Churchill Dam remains unexplained, and so the planned further drilling will be undertaken shortly.