As part of a search for possible Tunkillia type structurally-controlled buried gold deposits within an area located approximately 120 km north-east of Ceduna, licensee Southern Gold targeted geochemical and geophysical anomalies that had previously been identified in 1994 by Equinox Resources on that company's former EL 2035. Initially, the historical geochemical data from 4481 existing calcrete sample sites were compiled and reviewed by consultants Tonkin and Associates, and then were used in conjunction with interpreted geological and geophysical features of the Proterozoic basement to generate priority exploration targets. During January 2006 Equinox's Koondoolka and Yathong prospects were investigated by taking 88 calcrete, 8 rock chip and 5 soil samples for assay, but this follow-up sampling was unable to repeat the tenor of the previously reported geochemical values. At Yathong, where Equinox had recognised a potential IOCGU target due to coincidence of north-east trending magnetic lineaments with a 2.5 mGal residual gravity anomaly, Southern Gold conducted ground radiometric measurements and performed lag and alluvium sampling at 100 m x 500 m sample spacing. This work returned elevated uranium and rare earth values from sediments that were sampled 1-2 km downstream from the centre of the Yathong gravity anomaly. Acting on this encouragement, Southern Gold undertook detailed gravity surveys (257 stations read at 200 m intervals along lines spaced 800 m apart) in November 2005 at Yathong North and Yathong South, and completed 15 ground magnetic traverses totalling 12.02 line km, plus associated soil sampling (156 samples), to assist with the positioning of planned exploratory drillholes aimed at testing interpreted lithological contacts and demagnetised zones within the Yarlbrinda Shear Zone and related fault splays. Peak gravity responses of 1.8 mGal and 2.1 mGal were recorded, corresponding poorly to magnetic lows, and having anomaly wavelengths suggestive of deep sources. An inferred separate new ductile shear zone, the Childara Shear Zone, was mapped as merging into the Yarldrinda Shear Zone at Yathong North. During June 2006 the licensee proceeded to drill 103 vertical aircore holes along 7 of the same 15 traverses as had been used for the ground magnetics. Total drill penetration was 2395 m, the deepest drillhole reaching 48 m depth. This drilling programme was partly subsidised by the SA Government as approved PACE Initiative Project DPY2-21. Analysis of 836 downhole 3 metre composite samples and petrological studies of 10 rock chips yielded disappointing results, but did give assistance in deciphering the local geological terrain. Sericite-altered, highly sheared and mylonitised granite-monzonite, similar to that seen near Tarcoola, was encountered, exhibiting pronounced quartz veining in one drillhole (YA028) on Line 2. The best assay results were 35 ppb Au, 1000 ppm Cu and 11.5 ppm U, coming from narrow intercepts in widely separated drillholes.