A PACE Initiative Year 4 subsidised drilling project carried out on Mount Eba Station, in an area located approximately 30 km south of the Prominent Hill mine, initially targeted a wide above background silver geochemical anomaly returned by sampling of the EL 3429 licensee's previous diamond drillholes SH1 and SH2, which had been drilled during April 2006 to around 400 m vertical depth in the Millers Creek valley to test an aerial radiometric anomaly. Both drillholes, spaced 300 m apart, had intersected a Cretaceous coarse sandstone horizon which carries 30 g/t Ag and minor sulphides. Subsequent sampling of 10 nearby waterbores that had been drilled recently by Oxiana confirmed the silver anomalism, returning values of between 0.5 to 1 g/t Ag over 20 to 70 m thicknesses of sandstone, in an area of about 100 square km that extends up to 18 km north of Sloane Hill. Traces of copper sulphides and of tungsten were also detected. It was hypothesised by Uranium Exploration Australia (UXA) that the silver, probably carried into the cover sediments as a chloride complex, might represent the most geochemically mobile trace metal indicator of a multi-metallic source contained within an underlying basement high, interpreted to lie 170 m below the anomalous interval. The first PACE drillhole, SHT1, was a twin of SH1 to retest the high silver intercept. It was drilled to 86 m depth and ended in Permian Stuart Range Formation, but failed to encounter any anomalous silver in the downhole Cretaceous-Permian section. The explanation put forward for this negative result was that ?diamond drillbit wear had caused (?all of) the original silver anomalies. Subsequently, the remainder of the PACE - subsidised drilling was directed towards testing the IOCG potential of a Proterozoic basement high interpreted to lie beneath 130-210 m thickness of cover, since anomalous copper had been detected in one of UXA's previous drillholes. In fact, the licensee had been conducting infill drilling to test this target since 2006. The PACE Year 4 work consisted of extending existing hole SH7 to reach basement, plus drilling a new hole, SH13, also to basement. However, difficulties were experienced, firstly just with sourcing a drill rig that was available, and then meeting with adverse drilling conditions : this caused neither hole to be satisfactorily completed by the PACE project closure date. Hole SH7 reached the drill rig's depth capability limit within Proterozoic Pandurra Formation metasediments at 1212 m depth, after continously NQ diamond coring from 805 m depth (the TD of the re-entered previous drillhole). Hole SH13 is currently at 702 m depth (cored from 189 m), also within the Pandurra Formation, but with a 200 m length of parted drillstring now stuck in it. The drill rig has been demobilised back to Dubbo, and no firm commitment has been made by the driller company, Tom Browne Drilling Services, to return to complete the project in the near future. Now that UXA has come under new management and direction, it has entered into a long-term arrangement with John Nitschke Drilling whereby a UDR1200 rig will be provided for continual work on UXA's tenements throughout 2008. UXA is committed to return to this project with the larger capacity drilling rig in order to successfully penetrate basement and identify lithologies.