In 2007, Lincoln Minerals discovered greenfields uranium mineralisation near Jungle Dam on its EL 3690, located about 45 km north-east of Kimba on the northern Eyre Peninsula. EL 3690 straddles a NNW-trending splay of the Kalinjala Shear Zone (~1720 Ma), which separates mixed Hutchison Group, Miltalie Gneiss and Lincoln Complex of the Cleve Subdomain, to the west, from dominantly Lincoln Complex of the Coolanie Subdomain, to the east. The region was affected by widespread epithermal alteration and mineralisation at ~1590 Ma, which produced the Weednanna Au (Cu-Fe), Wilcherry Hill Fe, Menninnie Dam Zn-Pb-Ag, and Telephone Dam Pb-Zn-Ag deposits located north-west of EL 3690. The western part of the tenement exhibits epithermal alteration and anomalous Pb, Zn, and Ag. Previous aircore drilling conducted by Lincoln Minerals during 2007 to investigate some coherent calcrete uranium anomalies recorded near Jungle Dam had revealed that at this location at least one broad northeast-trending bedrock zone of low grade uranium mineralisation, with assays up to 0.06% U, is present within metasedimentary units of the Hutchison Group (for comparison, uranium grades present at Olympic Dam are between 0.05% and 0.09% U). The aircore holes had defined at least two parallel zones of mineralisation, the main zone being about 250 m wide and extending for 400 m along strike (although a program of biogeochemical exploration has indicated a strong signature of uranium in mallee leaves for up to 2.5 km to the north). Surficial cover is between 7 m and 23 m thick, overlying weathered, saprolitic basement. Fresh basement lies at depths of 40 m to 90 m. In the fresh basement the aircore drillholes encountered paragneiss, schist, quartzite, pods of leucogranite, vein quartz, chalcedony, and sulphides (mostly pyrite). The paragneiss is variably pyrite-rich and graphitic. The uranium mineralisation is associated with the base of weathering and the presence of pyrite, vein quartz, and graphite. Intersections of vein quartz and pyrite are up to 10 m thick, and form a cluster of veins throughout the 250 m wide zone. Sericite and chlorite alteration are seen in thin section, as well as chalcedony, and opaques (probably graphite and pyrite). Concentrations of Co (up to 540 ppm), Cu (up to 0.5%), Ni (up to 718 ppm), and Zn (up to 0.3%) are elevated. Qemscan analysis identified the uranium mineral françoisite-(Ce), an indicator of the presence of uraninite and coffinite. These data suggest a hydrothermal origin, and are consistent with vein uranium mineralisation. Three known tectonic episodes which affected the area are the 1.72 Ga Kimban Orogeny, the 1.60 Ga Olarian Orogeny, associated with the Hiltaba Suite and the regional epithermal event, and the 0.83 Ga extensional event which produced the Gairdner Mafic Dyke Suite. Potential source rocks for uranium mineralisation were emplaced at the time of each of these events. In May 2010 Lincoln Minerals was awarded a PACE Initiative grant of $75,000 from Year 6 drilling partnership funds, as approved drilling project proposal DPY6-37, to undertake deeper evaluation drilling at the Junction Dam prospect and obtain bedrock structural information for guiding the search for vein-hosted uranium. It was planned to drill four rotary mud/diamond cored holes each to around 300 m deep. However, difficulties were experienced when drilling the first two holes due to encountering consistently very weathered, unconsolidated and fractured rock sequences, which produced poor to nil drill core recoveries, and this meant the the DPY6-37 drilling programme had to be stopped after attempting just the two holes. The initial hole, EUDH001, was inclined at 60 degrees dip to the east and sited close to Lincoln Minerals' RC hole WCRC008. It was drilled using rotary mud techniques to 59 m depth, where hard rock was first reached. The drilling method was then converted from rotary to HQ diamond coring, however, the HQ coring string passed out of the hard rock band at 62 m depth and back into clay-dominated soft rock sequences. Therefore rotary mud drilling techniques had to be resumed and were persisted with down to 102 m depth. The uranium mineralised target zone was predicted to exist within the depth interval 100 -150 m. The original hole plan was to case off the HQ drilled hole section as soon as competent ground was entered, but owing to the unexpected greater depth of weathering and highly fractured rocks, this was not achievable until 162 m. Below this point NQ diamond coring began, and was continued to the end of hole at 240.7 m. Over this nearly 80 m wide depth interval the highly fractured and weathered bedrock persisted, which resulted in only one short core orientation measurement being achieved, and the lack of desired information led to a decision to end the hole. EUDH001 intersected 13 m of Quaternary and Tertiary sands and clays before striking saprolitic clays and quartz units, presumably of the Hutchison Group, which persisted to 50 m downhole. The bedrock in the few drill cores that were recovered from the underlying hole interval 50-100 m is extremely weathered, unconsolidated, and quartz-rich, with evidence of mineral pitting (i.e. past weathering out of unknown minerals). Very little rock core was recovered from 100-110 m downhole, however pyrite was observed in the diamond bit cuttings being returned to surface. A fine-grained possible amphibolite was intersected from 111-114 m. Below 114 m, a variably weathered gneiss with a foliation at a moderate to steep angle to the core axis is the dominant lithology. The gneiss visually contains quartz, plagioclase, sericite, amphibole, chlorite and minor pyrite. A second, vertical hole, EUDH002, was designed to probe up dip and southwards in strike from EUDH001, and thereby test the area between the two parallel uranium trends identified near Jungle Dam. It was hoped that this hole would hit more competent rock, be able to test the potential for uranium to be entrapped in marble and calcsilicate gneiss (as had been reported by Trafford Resources from work done near Telephone Dam to the north), and also gain useable structural information in the search for vein-hosted uranium. As before, variably weathered and highly fractured rock sequences were encountered. Rotary mud drilling techniques were utilised to 52 m depth, whereat HQ3 diamond coring was begun. Again, poor drill core recoveries were experienced, some core runs giving no return at all. All reasonable efforts were made to increase the core recovery by attempting only short core runs, and by trying HQ3 - triple tube coring, different mud mixes and overall water usage, however an unacceptable degree of core loss continued. NQ gauge coring was commenced at 125 m depth and continued to the end of the hole at 194.8 m. EUDH002 encountered Quaternary and Tertiary sediments to 9 m depth, before passing through clay-rich saprolite with minor quartz and ferruginous material to 45 m. From 45 m to 62 m a quartzite unit was intersected, before the hole entered a highly weathered, fractured and brecciated zone with a possible cross-cutting amphibolite. Coming out of the breccia zone at 70 m depth, the hole then moved into an iron oxide and manganese rich interval showing evidence of past remobilization in the form of increasing amounts of silica present in the rock system. From 85-90 m the cored gneissic rock is slightly magnetic. At 92 m an interpreted highly weathered marble was encountered, which contains another breccia zone from 102 to 106 m. Below 106 m a marble with varying amounts of silica was drilled until approximately 125 m, where a small zone of magnetic calc silicate rocks was encountered. From 132 m to 154 m the dominant lithology reverted to a silica rich marble, although minor calc silicate bands continued to the end of the hole. Hand held portable XRF spectrometric scans made over drill cores and cuttings from the two PACE diamond holes revealed that EUDH001 has small intervals of elevated (up to 0.04%) uranium and other base metals (Cu, Pb, Zn) present over the 102-130 m downhole section, with one interval of 66% Fe and >6% S denoting where the aforementioned visible pyrite grains came from. EUDH002 displayed no anomalous uranium, however the iron oxide and manganese rich breccia zone displayed up to 57% Mn and very anomalous gold at 190 ppm Au. In the immediate future it is intended that possible mineralised sections of the drillcores disclosed by the XRF preliminary analysis will be sampled and submited for laboratory analysis, while detailed petrological examinations will be made of selected anomalous samples.