An area situated on the eastern margin of the Nullarbor Plain has been explored for possible economic sedimentary uranium deposits that may have formed in Tertiary strata underlying the Nullarbor Limestone. The target porous sediments are those filling the Early Eocene Watson Palaeochannel, which drains known uranium-rich basement rocks of the western Gawler Craton. Initial work comprised the flying during December 2005 of a HoistEM survey over the part of the Eucla Basin lying immediately west of the recent Jacinth and Ambrosia heavy mineral sands discoveries, in order to allow joint venturer Iluka resources to map aquifers that might be tapped to provide process water for its planned mineral sands mining operation and onsite HM concentrate production facility. Twelve 15 km long east-west lines of HoistEM were flown by contractor Worley Parsons GPX Airborne across EL 3323, at a line spacing of 2 km, for a total coverage of 185 line km. The resulting EM data were processed under Iluka's supervision to generate conductivity depth maps which showed a strong likelihood of saline groundwater - bearing sediments existing at depth within 50 km of the proposed minesite. During the second licence year Iluka undertook exploratory drilling over the north-eastern part of EL 3323 in an attempt to define a suitable sedimentary aquifer for supplying the needed groundwater. This test drilling took place in two campaigns (20 holes for a total penetration of 1327 m put down at 600 m intervals along 4 traverses during May 2006, plus another 5 holes for 372 m put down at 1 km spacing along a fifth traverse during September 2006). This work successfully discovered a significant basal palaeochannel aquifer that extends along a north-south axis located 30 km to the west of the proposed Jacinth-Ambrosia mineral sands mine. The aquifer is located in a sizeable palaeovalley filled with Eocene medium to coarse, poorly sorted fluvial sands and gravels, and contains hyper-saline and moderately acidic groundwater. It appears to extend for at least 12 km (the distance between drill traverse lines 3 & 4 and line 5) and may continue for tens of kilometres 'downstream'. The aquifer is between 40 and 50 m thick and up to 2 km wide. Conceptually, the aquifer system appears to be relatively straightforward : a single strip unconfined but stratified aquifer, with a southern barrier restricting 'downstream' flow, and with very limited or no recharge (either through weathered basement, or through limestone and upper lower permeability strata, or from the sides of the valley). Selected drillhole cuttings and the groundwater were sampled for mineral exploration purposes, on behalf of Intermet Resources and other joint venturers, and returned elevated (to 70 ppm U and 602 micrograms/litre U respectively) uranium values from within a basal sand unit lying immediately above a thick lignitic (reduced) sequence, i.e. from close to the redox cell boundary. During the third licence year a second, 25 Hz TEMPEST aerial electromagnetic and magnetic survey was acquired over the western portion of EL 3323 by joint venturer Uranium Equities, as part of a project-wide, 2162 line km AEM coverage which was flown during May 2007 along 1 km spaced east-west lines at a nominal flight elevation of 120 m. Inversion modelling of the EM data further delineated the Watson Palaeochannel system, which appears to be >70 km in length and has elements visible at three depth ranges, 70+ m, 100+ m and 150+ m. A drilling programme targeting an area next to uplifted basement in the north-east of EL 3323, to test areas of interpreted palaeochannel constriction (possible reductant traps for roll-front style sedimentary uranium deposits) and where tributaries converge, has been recommended.