A structurally complex area located 50-70 km south-west of Marree was taken up to explore for possible diamonds, this strategy being based on recognition of apparently favourable geological criteria for the presence of diamond-bearing kimberlites and inferred carbonatite intrusions, and on unresolved records of positive results in previous kimberlitic indicator mineral sampling. Available post-1990 flown airborne magnetic survey TMI data was reprocessed and interpreted to try to identify and prioritise magnetic anomalies that might reflect kimberlite targets. Landsat 7 TM imagery was also examined to look for signs of reflective minerals at surface that could be associated with outcropping or shallowly subcropping kimberlite pipes. This work defined 12 magnetic targets discernable above the generally quiet magnetic background of the licence area; 8 of these anomalies were visited in the field, but no outcropping kimberlites were observed, although the majority of sites are largely covered by scree or alluvium. In the second licence year Tasman Resources sought a joint venture partner with significant diamond exploration experience to progress work on the tenement. Eventually Flinders Diamonds made an agreement with Tasman to manage diamond exploration over a number of Tasman's South Australian tenements, including EL 3254. It proposed to fly a low-level helicopter-borne aerial magnetic survey across the entire licence area, and to follow up selected targets with drill tests. However, the JV then experienced continuing inability to procure a suitable survey contractor during more than nine months, and finally Flinders elected to exit the work agreement, with the result that shortly thereafter Tasman decided to surrender the licence.