[ Note - here is Part 2 of the abstract relating to 2 separately indexed parts ]. In the latter half of 2003, new project partner Phelps Dodge reprocessed aeromagnetic and gravity data and produced a magnetic/structural interpretation, from which eight targets were defined to be assessed by follow-up detailed gravity surveys during 2004. During March-April 2004, the Peake Denison_Douglas Gravity Survey was carried out over three grids comprising 934, 1360 and 1096 gravity stations respectively. This work identified new gravity targets with associated high magnetic and low magnetic zones located along large cross-cutting structures, at Umbum Creek and Spring Hill prospects. 5 rotary mud precollared drillholes totalling 1311.3 m were completed, cased and pressure cemented in preparation for core drilling into basement planned for early 2005. During November-December 2005, diamond core drilling totalling 705 m was carried out in the five prepared drillholes. Three of the five cores encountered encouraging magnetite-hematite ironstones, with one core cut into the C2 magnetic anomaly intersecting weak copper mineralisation. Re-modelling of the downhole magnetic data for C2 suggested that the drillhole clipped the southern edge of the weakly copper mineralised ironstone. An additional four detailed gravity surveys totalling 3357 stations were conducted during April- May 2006 to define further targets for drilling. As before, rotary mud precollared drillholes (12 totalling 1240.5 m; 2 abandoned due to drilling difficulties) were completed, cased and pressure cemented in preparation for core drilling into basement planned for early 2008. Only one of these precollared holes, SH0705, was later deemed to be a suitable target for diamond drilling. It was diamond cored during October 2008 over the depth interval 116.5-225.5 m, within locally intensely sheared and brecciated Peake Metamorphics granitoid and metasedimentary rocks exhibiting minor late stage haematite-sericite alteration. No significant mineralisation was seen, and no core sample assaying was done. Due to the lack of encouraging geology met with at the bases of the other precollared holes, as had been seen when a 1-metre long rotary core was cut into the basement at each, and because of Phelps Dodge funding constraints, a decision was made by Red Metal not to extend these holes with diamond coring. Subsequent to its campaigns of drill testing the basement beneath several moderate amplitude gravity anomalies with associated magnetic highs, Phelps Dodge concluded that most of the gravity anomalies could be explained by dense calcsilicate alteration and/or basement highs of barren ironstones consisting of magnetite or magnetite overprinted by haematite. Similarly, the magnetic anomalies appeared to be caused by barren massive ironstone or disseminated replacements associated with calcsilicate alteration. It was suggested that most of the basement alteration drilled so far is typical of the early phase of sodic-calcic-iron district-scale alteration seen in IOCG terrains of the Mount Isa Inlier such as Cloncurry. The Peake and Denison regional alteration comprises mainly albitite, scapolite, actinolite, clinopyroxene, magnetite and haematite assemblages. The albite is typically white, and contains coarse disseminations of specular haematite rather than the red fine haematite dusting which is typical of the Cloncurry and other IOCG terrains. It was decided that future work programmes should focus on: - drilling other untested positive magnetic targets and reverse polarised negative magnetic anomalies. - following-up the copper mineralisation identified in Davenport Creek drillhole DCDH001 (3 m @ 2.75% Cu from 330 m depth) by Pancontinental Gold in 1999. - assessing the use of low temperature SQID-EM as a means of ranking magnetic and gravity targets prior to drilling. However, Phelps Dodge and Red Metal then chose to withdraw from the Peake and Denison joint venture in mid-2009, and shortly afterwards the licence holders decided to surrender the remaining three project licences (ELs 3192, 3249 and 4149).