Ongoing exploration in the Kalkaroo joint venture (formerly called South Eagle - Yarramba) area, located 40-80 km north-east of Olary and 50-150 km west-northwest of Broken Hill, has continued to target stratabound/epithermal/hydrothermal Pb-Zn-Ag and Cu-Au mineralisation in Proterozoic rocks of the Willyama basement. No work was conducted by the EL 2055 JV partners Placer Exploration and Mount Isa Mines during the previous, 1996-1997 licence year due to their progressing of joint venture negotiations with Newcrest Mining, in order to help fund a shift in exploration emphasis towards deeper gold-prone targets. Newcrest commenced its work commitment early in 1997 with a wide-spaced aircore drilling campaign (455 holes for 36,500 m) of potential stratabound copper-gold targets within the licence area. These targets were generated mainly from their interpretation of the Broken Hill Exploration Initiative (BHEI) high resolution, 100 m spaced regional geophysical dataset, which had revealed multiple linear magnetic features extending along the Benagerie Ridge, plus other distinct magnetic anomalies evident within the western part of the EL 2055 area. Untested surface geochemical anomalies found in previous exploration were also targeted. At Kalkaroo prospect, appraisal diamond drilling (5 holes, KND001-004 and KND007, for a total penetration of 1681.1 m, all continuously cored below air-cored precollars) was undertaken to look for extensions along strike and downdip of known Cu-Au-Mo mineralisation. This drilling successfully intersected Kalkaroo-style mineralisation along strike both 200 m east of and west of Placer Exploration's discovery drillholes. It is located within a north-dipping, strongly albite-quartz altered metapelite unit containing conformable and cross-cutting epigenetic carbonate +/- fluorite - blebby chalcopyrite veins and molybdenite selvedges to late veins and fractures. 7891 drill cuttings samples taken over 3 m intervals were sent for assay, returning several occurrences of >1000 ppm through 2% Cu, plus best gold values of up to 1.88 g/t Au. The Newcrest diamond drilling has confirmed the earlier proposed subdivision of the Kalkaroo prospect local stratigraphy into five lithostratigraphic zones, and has also confirmed the symmetry of anticlinal fold bedding dips around the linear magnetic highs, using structural measurements obtained from orientated HQ3 and NQ3 drill cores. Infill and line extension ground magnetic traverses (20.6 line km) were acquired at the Kalkaroo and Deep Well - Hard Dam prospects to enhance the magnetic modelling datasets. After this preparation, another two diamond drillholes, KND005 and KND010, were put down at the Deep Well - Hard Dam linear magnetic anomaly for a total of 910.8 m, to test for deeper downdip mineralisation on the south-eastern side of the fold structure in an equivalent Bimba Formation stratigraphic level to that appraised at Kalkaroo. Both drillholes intersected predominantly weak, disseminated pyrrhotite +/- trace arsenopyrite - chalcopyrite - pyrite occurring as blebs and bands parallel to bedding, as sulphide replacement of albite - actinolite - carbonate - chlorite alteration bands, as vein infill to cross-cutting fractures and as ovoid concretions. The best downhole assay result was 13 m @ 0.41% Cu from 484 m depth in hole KND005. The host rock is a steeply south-easterly dipping laminated metapelite. Two diamond drillholes totalling 885.5 m, KND008 and KND009, were put down on a linear magnetic anomaly at the Homestead prospect to confirm the prospectivity of an inferred anticlinal hinge zone located there. The stratigraphy could not be defined as well as at Kalkaroo due to the lower density of drilling information and more pervasive albitic and haematitic alteration, although, in a broad sense, similar stratigraphic levels appear to parallel the magnetic high. Anomalous epigenetic veined intervals returned assays averaging 0.1-0.2 g/t Au and 0.15-0.35% Cu, suggesting proximity to nearby better-mineralised zones present laterally or at depth. Orientation Deep Leach II method mobile metal ion soil sampling (35 samples) was carried over the Kalkaroo and Homestead prospects, but the analytical results gave a poor correlation with drillhole geochemical anomalism, particularly for dispersed gold and copper. Further geochronological age dating of a composite of selected drill core samples taken from around 280 m depth in hole KADD001 on the Kalkaroo prospect was performed, to check on the validity of a single sample Delamerian metasedimentary age previously reported by the PRISE team at the Australian National University. A youngest zircon crystallization age of >1200 Ma (i.e. Proterozoic) was indicated, but the wide range of older ages detected still precludes consensus on the timing of the major Kalkaroo mineralisation event. Drilling of a single diamond drillhole, KND006 to TD 348.2 m on the South Sampsons aircore drill grid, to determine the source of a bullseye high magnetic anomaly seen near its centre, encountered an alternating sequence of laminated metapelites and thinner, interbedded magnetite-bearing metapsammites, which would serve to explain the magnetic response, having magnetic susceptibilities ranging from 1000 to 20,000 x 10-5 SI units over only 1 m sampling widths. Only trace copper and gold mineralisation was found here, in very thin altered veins, and no shear zones were met with. Other work contributed to by Newcrest before it left the EL 2055 joint venture in late 1998 included some detailed, 1:1000 scale geological mapping of the exposed Willyaman anticlinal structure at Johnny Hill, and active support for the BHEI/AGSO/PIRSA research projects that are addressing the metallogenesis of Proterozoic copper-gold mineral deposits. After MIM Exploration resumed operatorship of the tenement, only limited activity ensued in the 1999-2000 licence year. Five gossanous ironstone rock chip/grab samples were analysed from the Brooks Dam and Ironstone Dam prospects, revealing elevated levels of a number of elements, including Au to 0.37 g/t. A combined pole-dipole IP and MT test survey was also carried out on 5 lines over the Kalkaroo prospect (13 line km), using the company's proprietary MIMDAS acquisition system. However, due to the conductive nature of the regolith and the bedrock, the resulting electrical data exhibited a large component of EM coupling response, which has hindered and complicated the interpretation. Mathematical filtering is currently in progress on the MIMDAS data, to try to make it useable.