The Mirikata EL 3537 joint venture partners, Newcrest Operations Ltd and PlatSearch NL, have completed a planned four hole drilling campaign over three separate magnetic and/or gravity anomalies located 30-40 km west-southwest of Prominent Hill on their current tenement, as outlined in their funding application submitted under the PACE Initiative guidelines, which was approved as Year 4 collaboration project DPY4-07. Drilling contractor Boart Longyear conducted the drilling between 21 April and 17 June, 2007, utilising a truck mounted UDR1000 diamond drill rig with an auxiliary mud pump to assist in rotary-mud precollar drilling through the Eromanga and Arckaringa basins cover sequence. Four vertical or inclined drillholes with a total penetration of 2088.2 m (938.8 m HQ/NQ2 cored) were completed. The first hole drilled, MRK003 in Area A, explained the presence of the 2.5 mGal positive gravity only 'A1' anomaly merely through reaching shallow basement, a gneiss, at 84 m depth, rather than at the anticipated 250-400 m depth as had occurred elsewhere in past drilling on the tenement. At the nearby more complex 'A3' combined magnetic and gravity anomaly, where a single previous drillhole (MRK2A) had encountered anomalous Cu, Zn and Au values in association with calcsilicate meta-sediments, two further PACE diamond drillholes (MRK004, 005) were put down approximately 1200 m apart to test for the presence of a large iron oxide - associated copper-gold style (IOCG) mineralisating system. Both of these holes encountered highly sheared and locally brecciated siliceous and calc-silicate metasediments exhibiting variable carbonate±sericite±quartz±sulphide alteration and veining. Minor pegmatite/granitoid and post-deformational mafic dykes were also intersected. The altered and veined metasediments contain anomalous Pb, Zn, As and Ag values, but at subeconomic concentrations. The best assay result was obtained from hole MRK005 where a 112 m thick interval extending below 436 m depth averages 0.19% Zn, 0.07% Pb and 1.5g/t Ag. Maximum 2 m sample spacing assays obtained from this zone are Zn (0.54%), Pb (0.21%) and Ag (3.8 ppm). Best gold result from these two holes was 2 m @ 0.33 g/t Au from 424-426 m depth in hole MRK005. Part of the gravity anomaly associated with this area may be due to changes in the basement topography, perhaps resulting in part from the presence of major structures as evidenced from the sheared/brecciated nature of the basement core. The potential skarn magnetic/gravity target at Area 'B', lying peripheral to an interpreted Hiltaba Suite buried granitoid intrusion mapped further to the south from the 'A3' anomaly, was targeted by the fourth PACE drillhole, MRK006, which penetrated banded iron formation and metasediments below 420 m vertical thickness of cover sediments. No significant metal assay values were returned from this hole. The discrete combined magnetic and gravity anomalies targeted within EL 3537 are possibly due in part to faulted remnants of the nearby Hawks Nest ironstone stratigraphy, combined with irregularities in the basement topography, rather than to the possibility that they could represent evidence of the presence of IOCG mineral deposits.