PepinNini Minerals has recently completed a small stratigraphic drilling programme within the Musgrave Province in South Australia, which was carried out as a collaborative drilling project (DPY4-05) undertaken between the company and the SA Department of Primary Industries and Resources. The drilling programme formed part of the Year 4 PACE Initiative subsidised exploratory drilling effort facilitated by the South Australian State Government. The project was designed to investigate two poorly known mafic intrusions of the Giles Complex that lie beneath sand cover and dune fields within PepinNini Minerals' EL 3368, looking for evidence of any nickel-copper sulphide, non-ferrous group metal and platinum group metal potential akin to the style of massive mineralisation seen at the world class Voisey's Bay nickel deposit in Newfoundland, Canada. The PACE-subsidised activities were conducted as part of a broader multi-licence commitment exploration drilling programme being undertaken by the company during the later part of 2007. All drilling activities were undertaken with the approval of Anangu Pitjantjatjara Yankunytjatjara and the Indigenous Custodians of the area. The PACE work consisted of drilling three open rotary mud and diamond cored stratigraphic boreholes for a total penetration of 1253.35 m. Two holes were completed on the Harcus intrusion (Mount Harcus Block) for 882 m, and the third hole was drilled in the Mount Moulden Block to a depth of 361.28 m. The downhole HQ and NQ2 coring programme was intended to transect the buried intrusive bodies and to provide sufficient core samples to improve the understanding of the geometric orientation, fractionation and layering properties and general geological nature of the two intrusions, as well as to provide sample material for petrological, petrophysical and geochemical investigations. At the Harcus intrusion, the drilling encountered bedrock consisting predominantly of a homogenous gabbro. This unit does not exhibit any magmatic fractionation layering, nor do there appear to be any detectable components of magnetic mineral layering present within the intrusion. Disseminated mixed sulphides were encountered in one drillhole (HAR003), however, these sulphides do not appear to be part of a continuous zone, and are considered to represent an isolated occurrence. They vary in amount from traces to 5-10%, and their presence confirms the attainment of sulphur saturation and consequent accumulation of primary sulphide minerals within the intruding magma body. The sulphide assemblage is dominated by pyrrhotite, but features minor quantities of chalcopyrite and pentlandite. The drilling at Mount Moulden encountered only laminar, flat-lying, garnetiferous granulite gneiss under an area of sand cover that had been interpreted to be underlain by layered mafic/ultramafic rocks of the Giles Complex. Instead, the single drillhole penetrated a sequence believed to belong to the Wataru Gneiss. This finding has now invalidated all of the previous stratigraphic interpretations of the airborne magnetic data flown across this particular target area, which had invoked a large layered mafic intrusion as the cause of the magnetic response.