Adelaide Resources made application for PACE Initiative Year 4 funding in 2006 (Project DPY4-33) to drill for possible primary uranium mineralisation, following the identification of a spectral anomaly that arose from the reprocessing of radiometric data generated by an earlier airborne geophysical survey of a region 25 km south-east of Kimba on Eyre Peninsula (Pasminco, 1991). This PACE application was successful, and exploratory drilling of the geophysical anomaly was undertaken during March 2007. The Ethiopia target lies within folded and metamorphosed Hutchison Group metasediments and older basement gneisses, including the Miltalie Gneiss. The areal extent of the uranium anomaly is 2.5 km x 1.2 km, trending north-south. The anomaly has both uranium and thorium radiometric signatures, with follow-up surface sampling returning XRF values of up to 36 ppm U and 220 ppm Th. Between 8 March 2007 and 12 March 2007 a total of 41 vertical open RAB holes were drilled along five east-west traverses, for a total penetration of 1430 m. Lithologies encountered by the Ethiopia prospect drilling programme indicate the presence of a deep lateritic weathering profile, in excess of 30 m thick, comprising a pallid zone followed by both an upper and a lower saprolite. Twenty-one of the holes drilled encountered Precambrian bedrock at the base of hole. The bedrock was logged as paragneiss in the majority of these holes, with two differing instances of quartzite being found in holes ETH-034 and ETH-035, both located to the north of the site. This drilling programme revealed a geochemical uranium anomaly which predominantly follows the western side of the previously identified airborne geophysical anomaly, with only one exception being seen in hole ETH-035, where 20 ppm U occurs to the east of the smaller northern anomaly. Above background levels of uranium content were noted in the majority of drillholes, occurring from the top of the hole to the bottom of the oxidised zone. The more highly anomalous uranium values, in excess of 20 ppm U, are generally located below the oxidised zone, within the reduced zone. Thorium assay results appear to be constant all down the drillholes. Therefore it is thought that there are two phases of uranium. The first gives rise to lower assay values and, in combination with the more stable thorium, is insoluble and so is unaffected by the weathering profile. The second phase, a more soluble one, has been transported and then reprecipitated below the oxidised zone within the reduced zone, to give the identified higher geochemical anomaly. Thus the anomalous uranium values predominantly exist near the base of the drillholes, often within interpreted weakly weathered paragneiss. The two main objectives of this drilling programme were partially fulfilled: 1) the unweathered bedrock was satisfactorily sampled with the drilling method used. It was noted that elevated uranium levels were present in several samples of weakly weathered paragneiss located below the zone of oxidation. Since uranium is a highly soluble element that is easily remobilised by low temperature fluids, it is considered possible that the identified anomaly may be indicative of ore remobilisation from an unknown primary source, with reprecipitation occurring at the interface between the weathered saprock (oxidised zone) and the unweathered paragneisss (within the reduced zone). The identities of the mineral phases carrying the elevated uranium and thorium values were not identified, however, it has been revealed that there are two phases of uranium, an insoluble phase associated with the thorium and a soluble phase giving the more anomalous uranium values. 2) Only partial geological information on the local geological environment was obtained, therefore information about a preferred model for the occurrence of the elevated uranium and thorium is not available at this stage. An apparent lack of previous drilling within the 758 square km area now held as EL 3473 means that there is a lack of subsurface data, other than that acquired in the current project, on which to base a selection of any of the presently postulated structural, chemical or protomagmatic origins for the mineralisation.