Inco Resources has been exploring the outcropping portion of the Ordovician Black Hill Intrusive Complex for possible Voisey's Bay style nickel, copper and platinum group element (PGE) mineralisation since 2004, when it signed a joint venture agreement over EL 3122 with licensee Landmark Stone Pty Ltd. Later Inco applied in its own right for the two subject licence areas, to secure ground around and to the north of EL 3122 where it was thought that similar prospective lithologies might extend under shallow cover, according to models of the basement that were based on existing ground magnetic, gravity and drilling data. Previous drilling by North Broken Hill Ltd of the early stage mafic-ultramafic layers of the Black Hill complex has identified evidence of the formation of magmatic nickel-copper sulphides; the best intersection found was 30 m @ 0.2% Cu, including 2 m @ 0.55% Cu, 0.14% Ni and 0.4 g/t Pt+Pd. During November 2004, a 1551 line km GEOTEM airborne electromagnetic survey was flown over EL 3122 and parts of EL 3304, but no high ranking bedrock conductivity responses were detected within EL 3304. Subsequently, 14.7 line km of moving loop and fixed loop TEM surveys were completed in five target areas identified from previous aeromagnetic and drillhole data, a 2610 station semi-regional gravity survey was conducted along public roads and tracks to map subcropping mafic intrusive bodies, and a 32.8 line km magnetotelluric survey was acquired along 15 traverses. No responses of interest were identified from the TEM surveying, but Inco's proprietary analysis of the MT data collected from west of Bower in EL 3304 indicated the possible presence of massive sulphides at depth. During the licences' second year geophysical contractor Quantec Consulting inverted the data from Inco's MT surveys to produce two-dimensional conductivity sections, which were examined by Inco personnel in Canada to identify anomalous responses. The locations of some of the MT responses of interest were then profiled with detailed gravity readings (2791 stations read on 81 lines laid out across 8 prospects) plus fixed or moving loop TEM surveys to delineate specific drilling targets. Although no bedrock conductors indicative of massive sulphide mineralisation were detected, on the basis of magnetic and gravity data models two vertical NQ2 diamond coreholes totalling 525.4 m (including 121.1 m of rotary precollars) were drilled during June-July 2006 in the northern part of EL 3304, west of Bower township and near magnetotelluric survey lines 11 and 19 respectively. Hole 119105-0 intersected foliated metasiltstone country rock before penetrating the western margin of a gabbro/gabbro-norite intrusive body that had previously been penetrated by drillhole PADD19. Hole 119106-0 encountered denser siliceous and dolomitic metasediments, but failed to penetrate any Black Hill Complex mafic body. In each instance no significant sulphides were found, and no electrically conductive horizons were intersected downhole. No explanation could be made for the anomalous surface magnetotelluric responses which had been targeted, although the sources of the local gravity anomalies were evident.