During a period of almost 52 months, Mines Exploration, the operator of the presently active Kanmantoo copper mine, has also been conducting near-mine exploration at the historic Kapunda copper mine prospect, searching for economic extensions to known lode occurrences of sulphide mineralisation and for possible concealed new orebodies lying within the current mining lease areas. Initially, selected geophysical anomalies previously identified on the leases in 1963-64 by the South Australian Department of Mines (cf. RB 58/91) were further defined relative to the existing surface grid by carrying out 62.2 line miles of induced polarisation and ground magnetic surveys, followed by hand auger geochemical soil sampling (473 samples taken at 100 foot spacings). Copper values to peaks of 800 ppm Cu on 15-30 ppm background were recorded, coinciding with the maximum IP effects. No other trace metal anomalism was detected, nor was there any magnetic response. Next, the two most distinct of the four main IP anomalies were tested by inclined diamond drilling (3 holes for a total penetration of 3132 feet 6 inches), which revealed sub-economic, partly oxidised pyrite-chalcopyrite mineralisation in 2 of the holes located over the K1 geophysical anomaly. No significant mineralisation was revealed by the third diamond drillhole put down over the K2 geophysical / geochemical anomaly, located 0.4 miles south-east from the old mine area. At K1, however, oxidised secondary sulphide and primary copper sulphide mineralisation was encountered from surface to 300 feet depth, as discordant narrow veins and as bedding-conformable fine grained sulphides in kaolinised to fresh feldspathic to quartzose siltstones with some dolomitic sections. This supergene enriched zone yielded a best core assay result of 1.22% Cu from the depth interval 241-261 feet in hole KP1. Beneath the zone of kaolinisation, which persists to about 445 feet depth, more massive and partly brecciated narrow sulphide veins 15 to 18 inches wide were intersected, of a type that was mined historically in the oxidised zone. Attempts have been made to relate these veins to the old mined lodes, with correlations depicted on the Mines Exploration cross-sections and plans. The best mineralised drill core intercept found here was 0.94% Cu from the depth interval 535-540 feet in hole KP1. Although the unweathered sulphide mineralisation at both the K1 and K2 anomalies appeared to be of a sub-economic nature, the copper values recorded in the supergene zone were felt to be of interest, and it was decided to test this shallower target with more drilling. The follow-up vertical rotary/percussion drilling was performed along four traverses laid out along a 2000 foot north-south baseline over the KI anomaly (43 holes for 10,572 feet). Careful attention was paid to the drilling and downhole sample collection techniques to try to minimise contamination. This work, plus subsequent mineable material tonnage and grade calculations, outlined an inferred reserve of 5.5 million tonnes of ore averaging 0.74% Cu. Semi-quantitative assaying of a composite metallurgical ore sample showed that it contained virtually no gold and negligible lead, zinc, cobalt, nickel, chromium, vanadium, tin, cadmium, bismuth, tungsten or manganese. Experimental work on beneficiation of mixed samples of Kapunda ore was carried out at Broken Hill over the period July 1966 to February 1967. A flotation method appeared to be the most effective at separating and recovering the copper minerals, but going by the concentrate recoveries and grades obtained, the economic position for developing an open pit mine on the supergene orebody was deemed to be unattractive at the drill-indicated low order bulk head grade.