Approved PACE Initiative Year 3 drilling proposal DPY3-15 aimed to discover a roll-front style uranium deposit hosted in Mesozoic sandstones flanking the exposed radiogenic Peake and Denison Inliers, that is amenable to mining by in-situ leach techniques. From its examination of the historic drillhole data for the area, Red Metal had identified oxidised equivalents of the buried reduced sandstone sequences, up to 70 m thick, that lie adjacent to the Kingston Inlier's north-western margin. The present redox boundary between the oxidised and reduced Mesozoic sediments was the primary target of the drilling proposed. A total of 12 widely spaced rotary-mud drillholes for 704 m were completed along three traverses in December 2006-February 2007 as the partly PACE-funded subset of a regional uranium exploration programme. Most of the drillholes intersected the Cretaceous Cadna_owie Formation and Jurassic Algebuckina Sandstone and continued down into kaolinitic saprolite and saprock of the Adelaidean and Middle Proterozoic basement. In hole AG0714, a 4 m wide interval of anomalous gamma ray log peaks measuring up to 10 times background (498 counts per second) was encountered in weathered clay-rich saprolite underlying the Mesozoic sedimentary sequence. A subsequent step-out hole (AG0729) drilled 500 m west of AG0714 encountered anomalous gamma ray log responses within the basement saprock, here measuring to 4 times background over a 9 m wide zone. Geochemical assays of drill chip samples that were collected every 2 m from the high gamma ray log reading intervals returned a best result of 2 m at 213 ppm U, with 329 ppm V also, from a depth of 34 m in hole AG0714. Enrichments in nickel and copper are associated with the uranium concentration. These anomalous results are encouraging, as they suggest that enrichment processes were once active immediately below the Mesozoic sedimentary sequences, within the underlying weathered basement rocks.