The approved PACE Initiative Theme 2 drilling proposal DPY3-46 was specifically designed to test for haematite-dominant iron oxide - associated copper-gold (IOCG) mineralisation in an area of the northern Gawler Craton where little past exploration activity had been directed towards this model. Licensee Hiltaba Gold chose to investigate certain areas within its ELs 3336 and 3436 where low intensity aeromagnetic anomalies exist in proximity to interpreted major structural breaks, thought to have formed between the high temperature metamorphosed basement terrain of the Coober Pedy Ridge, and the lower temperature, magnetite - metasomatised and felsic intrusive - dotted volcanosedimentary terrain of the northern Olympic Domain. Semi-detailed gravity surveys with stations read at 400m and 200 m centres were conducted over these areas by licence joint venturer Stellar Resources, which disclosed several permissive gravity anomalies that were considered prospective for Carrapateena - style Cu-Au mineralisation. Three of these anomalies were drilled during October-December 2006 as a PACE-subsidised Year 3 project, the work comprising five rotary mud precollared diamond core drillholes totalling 765.6 m, which included 269.2 m of basement coring. No rock types regarded as being consistent with either the Carrapateena or Olympic Dam styles of IOCG mineralisation were encountered by this drilling, although some encouraging epithermal alteration was observed. Instead, the drillholes penetrated metamorphosed felsic intrusives and older metasedimentary rocks that are overprinted by calc-silicate - dominant alteration, and some holes also intersected intrusive, altered gabbro - type amphibolites showing retrograde chlorite/pyrite alteration. Only minimal amounts of sulphide mineralisation were seen. Some weak copper sulphides associated with magnetite were found in hole RR0604 at Georges prospect, but the gravity anomaly there was explained by the dense calc-silicate country rock. Indeed, the basement lithologies met with at all five of the PACE project drillsites adequately explained the density contrasts that were targeted. Further processing of the regional gravity dataset by new joint venture operator Red Metal has since highlighted several other gravity anomalies which are being considered as candidates for follow-up drilling.