The Intercept Hill Project area is located in the central part of the Stuart Shelf. Gawler Craton basement rocks in the project area comprise leucocratic granite of the Hiltaba Suite, volcanic rocks of the Gawler Range Volcanics and metasediments of the Wandearah Formation. They are overlain by a 600-800 m thick, flat-lying metasedimentary cover sequence of Adelaidean age consisting predominantly of sandstones, quartzites and shales. The subject tenement area partially covers both the Emmie Bluff gravity and magnetic anomaly and the south-eastern side of the Arcoona gravity anomaly, located between Woomera and Oak Dam. It is also located on the western edge of the NNW-trending G2 tectonic lineament corridor, which hosts the Olympic Dam deposit. This feature is thought to be a long lived zone of crustal weakness that has acted as a conduit for mineralising fluids. When Argo Exploration commenced work in the EL 4164 area, under tenure of prior EL 3084, it decided to conduct detailed gravity and magnetic surveys to delineate potential IOCG targets. In December 2006 the company contracted UTS Geophysics to complete an airborne magnetic and radiometric survey over the entire tenement, and ~10,000 line km was flown at 50 m flight line spacing and 50 m sensor height. In addition, ground gravity data was collected for Argo during June-July 2007 by Haines Surveys on a 400 m x 200 m grid over the entire tenement (~7,000 stations read). Subsequent to this, Argo has completed ten deep exploratory diamond drillholes in the Arcoona area for a total penetration of 10,202 m. This drilling has encountered brecciated and altered host rocks containing broad intervals of weak copper mineralisation. During 2009 Argo sought a PACE Initiative grant to assist with meeting the costs of further drilling at the Intercept Hill Project, and this application was successful, with funds being allocated in May 2010 as approved PACE drilling project DPY6-07. The money was used by Argo to explore the Oak Dam South prospect, located approximately 44 km north-east of Woomera on EL 4164. This geophysically defined prospect forms part of the large Emmie Bluff gravity complex, and was considered to be quite highly prospective, after 2D modelling of gravity data had outlined a discrete, moderate amplitude density anomaly in the basement with indicated dimensions of 1500 m (east-west), 1200 m (north-south) and 1300 m (vertical, not closed entirely) at a density contrast of 0.045 mGal. The large target body was interpreted to lie in a favourable structural location at the intersection of interpreted NE and NW trending faults. A single vertical HQ/NQ cored diamond drillhole, ODS001, was drilled from the surface during May-June 2011 at a site chosen near the peak of the Oak Dam South gravity anomaly, and encountered basement rocks at a depth of 808 m, beneath a thicker than expected Neoproterozoic cover sequence. The local basement lithology is generally a greenish-grey fine to coarse-grained granitic gneiss (probably belonging to the Palaeoproterozoic Donington Suite) composed mainly of quartz-feldspar-mica, having a foliation defined by biotite (with local included magnetite) with lesser chlorite/sericite/epidote alteration, that in parts is cut by quartz-feldspar pegmatite dykes with graphic textures. It also has some minor vein/veinlet - related red rock (hematite/K-feldspar) alteration, with an associated very sparse presence of pyrite as blebs/disseminations (no chalcopyrite or bornite was observed). The drillhole was terminated within this lithology at a depth of 993.8 m. Because of the lack of visible copper mineralisation in the drill core, the JV partners decided that none of the ODS001 drill core would be cut and submitted for assaying. Furthermore, additional drilling at this prospect is not considered a priority at this time, since it appears that the target gravity anomaly may be due only to a marginal increase in density of the granite compared to overlying sediments, or it may be just a product of lithological or palaeo-topographical variation at the basement unconformity. However, it is considered possible that downhole surveys (e.g. DHEM) may be conducted in the near future to maximise the information gained from drilling this hole. Ongoing work for the licence is envisaged to be further diamond drilling, once the geophysical data for the area has been re-assessed in the light of the PACE drillhole results.