Tasman Resources has discovered a new potential iron oxide - associated copper-gold-uranium (IOCGU) ore deposit at the Vulcan prospect, located 30 km north-northeast of Olympic Dam. The prospectivity of the Mesoproterozoic basement rocks in this particular area of the Stuart Shelf had first been identified by Western Mining Corp. in early 1977, shortly after the discovery of Olympic Dam, and during April-May 1981 a single exploration hole (SHD1) was drilled there to TD 965 m, but it was located off the main gravity anomaly and failed to find any mineralisation. More recently, Tasman Resources recognised the considerable potential and size of the Vulcan prospect from its interpretation of new, detailed gravity data, and this, when combined with an interesting magnetic signature, a very favourable address with respect to key tectonic lineaments, and an intriguing pattern of seismic reflections, all served to suggest a very high quality target for making an IOCGU mineral deposit discovery. Accordingly, in November 2009 Tasman Resources completed diamond drillhole VUD001 targeting the north-western part of the Vulcan gravity anomaly. This, the discovery hole, encountered a new IOCGU system, hosted by a sequence of mostly gneissic and granitic rocks. These rocks have been subjected to varying degrees of IOCGU-style alteration, fracturing, veining, brecciation and sulphide mineralisation, and the variously affected zones are now dominated by a mineral assemblage that is rich in haematite, carbonate, sericite and chlorite and in metal sulphides, predominantly pyrite plus lesser chalcopyrite. The Vulcan prospect is defined primarily by a moderately strong and large, regional scale (around 12 square km) gravity anomaly that is surrounded by several partly coincident, but generally weak, magnetic anomalies. By analogy with other known IOCGU mineral systems such as those at Olympic Dam, Prominent Hill and Acropolis, the associated magnetic anomalies, even where not necessarily coincident with the gravity anomalies, are clearly important components of these systems. It is believed that the magnetic anomalies present at Vulcan are evidence of elements within the primary magmatic/hydrothermal IOCGU system, but that the higher grade mineralisation itself is more likely to be spatially associated with nearby dense, but relatively less magnetic, basement rocks. To further appraise this significant discovery, four deep, RC precollared, diamond HQ/NQ cored stepout drillholes (VUD002 to VUD005) with a total penetration of 4642.3 m were completed under Year 6 of PIRSA's PACE Initiative, as Theme 2 approved drilling project DPY6-02. The drilling took place between April and July 2010. The total length of RC precollar holes drilled was 655.2 m. Hole VUD002 was collared at essentially the same position as VUD001, but was drilled at an angle of about -70 degrees towards the east. Like VUD001, it encountered a very thick sequence of rocks having definite IOCGU-style alteration and mineralisation. Contained copper, gold and uranium grades are comparable to those obtained from VUD001, and with respect to rare earths content, one 5-metre thick interval (from 947 to 952 m depth downhole) averages 0.29% Ce and 0.18% La, comparable to levels of these elements seen in mineralised haematite-rich breccias at Olympic Dam. Vertical hole VUD003 was collared 587 m east of VUD002, where it encountered a very thick sequence of IOCGU-style alteration and mineralisation, within which the mineralisation is of much higher grade than seen in the previous holes, including, for example, one intercept of 7.8 m @ 1.21% Cu and 0.35 g/t Au, and another of 0.65 m @ 7.82% Cu, 2.41 g/t Au and 0.03 kg/t U3O8, as well as a number of others nearly as rich. Vertical hole VUD004 was collared 180 m east of VUD003, and drilled into a zone of IOCGU-style alteration and mineralisation that appears to be more weakly developed than those found in the previous Vulcan drillholes, although one intercept was made of 1.37 m @ 0.91 kg/t U3O8. Vertical Hole VUD005 was collared 1.63 km south of the other PACE drillholes, to test a gravity depression between two gravity highs and determine the nature of the basement there. This drillhole encountered a very thick interval (at least 576 m thick) of Pandurra Formation, and failed to reach the pre-Pandurra basement before being terminated at TD 1413.5 m. The Pandurra Formation here is believed to be occupying a down-faulted graben within the basement. In the period since this PACE drilling project was finished, Tasman Resources has conducted a 2-D seismic survey over selected parts of the Vulcan gravity anomaly, targeting possible other IOCG mineralised zones, and the company plans to resume drilling in October 2010. The southern part of this large feature is currently believed to be the most attractive location for the next round of drilling.