As part of continuing diamond exploration on the subject five licences, more of the first pass sampling program was completed by Flinders Diamonds in August 2006 via aircore drilling of 47 vertical holes for an aggregate 1852 m aimed at penetrating to Permian strata on a grid basis, with a sampling density of one drillhole approximately every 25 square km, equating to a hole spacing of around 4.8 km on an offset grid. 16 holes (AC06GT66-AC06GT81) were drilled on EL 3526, with 14 holes intersecting sampleable Algebuckina Sandstone at close to predicted depths. Most sediment samples collected weighed about 20 kg, derived generally from good quality basal cobble horizons. If present, additional suitable samples representing high-energy deposits within the Algebuckina Sandstone were taken from further up the hole. The remaining 31 holes (AC06GT81 – AC06GT112) were drilled on EL 3170, but only 14 of them were sampled due to the following limitations: • Absence of target Algebuckina Sandstone/Mount Anna Formation material. • Presence of highly silicified horizons unable to be drilled by the aircore method. Sample weights on EL 3170 ranged from 10 kg to 40 kg, with most holes sampled located on the northern and western sides of the tenement. In total, 41 samples of cover materials that immediately overlie the Permian, which included multiple samples from selected individual drill holes, were collected to be observed for kimberlite indicator minerals (KIM) and diamonds, the mineralogical determination process including electron microprobe analysis of the former. That work yielded relatively few positive KIM results. Most of the spinels are aluminous, very few have the high chromium content typical of kimberlitic spinels, and most are likely to be derived from a mafic source rock. A few grains with higher chrome contents are possibly kimberlitic, although they do not have the high titanium content typical of kimberlitic spinels. Five grains of ilmenite have high chromium contents (>1% Cr2O3) which may indicate a high pressure source. All of the garnets probed are manganese-rich and of non-kimberlite origin. The 2006 drilling results suggested to Flinders Diamonds either that the latest holes are distal to any kimberlitic source rock, i.e. further removed than the holes drilled during its 2003 program, or else the sampling or processing procedures had failed to efficiently recover the KIM. Hence it was proposed that future diamond exploration might have to rely upon the adoption of detailed geophysical surveys and drilling of targets, rather than additional under-cover sampling. For the commencement of IOCG mineral exploration activities overseen by joint venturer Maximus Resources, the preferred target was a north-west trending basement gravity feature with associated magnetic anomalies, that extends over an area of about 7 km x 2 km on ELs 3170 and 3338. This feature lies between, and on the same north-west trend as, Olympic Dam and Prominent Hill, as thus was considered to have enhanced potential for hosting IOCG mineralisation. During March-April 2006 Maximus undertook a gravity survey with 403 stations read at 400 m x 400 m spacing, and complementary ground magnetic readings were taken along the same traverses, to try to better define the target structure and estimate the depth to top of basement. Between late June and late August 2007, 2 exploratory diamond holes were drilled to test the Billa Kalina gravity feature. BKDDH1 was drilled to TD 599 m, and BKDDH2 was drilled to TD 595.7 m. No significant mineralisation was intersected in either drillhole. Both drillholes encountered basically the same sequence of rocks. The cover units are Tertiary Millers Creek Dolomite and Billa Kalina Green Clay, underlain by Cretaceous Cadna-owie Formation and Permian Boorthanna Formation, which unconformably overlie the basement. The basements rocks are a series of metamorphosed ?Archaean pyroxene-plagioclase basalts having a greenschist facies assemblage (actinolite-albite-chlorite-epidote-carbonate-titanite), variably interbedded with lesser andesite and minor tuffs. Many of the basalt flows have fragmentation textures. These metavolcanic units were interpreted to represent a possible past subduction zone island arc - related calc-alkaline igneous association. Because the project tenements cover ~130 km of the south-eastern margin of the Permian Arckaringa Basin, they were considered by another farm-in partner, ERO Mining, to be prospective for sandstone-hosted uranium mineralisation. During 2006 that company performed a field reconnaissance and made logistical preparations for a planned regional airborne electromagnetic survey of the entire project area. This survey was conducted during August-September 2007, when 3415.5 line km of helicopter-borne REPTEM mode aerial EM and magnetic data were acquired by flying 1 km spaced NE-SW lines at a sensor loop mean terrain clearance of 30 m. During September 2008, a small rotary mud drilling program of 3 vertical holes totalling 726 m was conducted to test coincident gravity and REPTEM anomalies in the north-eastern corner of EL 2526. This geophysical target was interpreted as a response from a probable sub-basin that includes an interval of conductive Bulldog Shale, and could therefore be prospective for coal as well as sandstone-hosted uranium, if similar to the Permo-Triassic basins at Leigh Creek. The significance of the gravity low only became apparent to ERO when it was able to peruse the newly released 2007 PACE Initiative-funded Northern G2 Corridor heli-gravity survey data. The company's subsequent gravity data modelling suggested that the sedimentary sequence of interest has a thickness of several hundred metres and is confined to a NE-trending central axis. Each of the test drillholes was completed to TD 252 m and then was wireline geophysically logged using calibrated downhole gamma ray and conductivity tools. One small gamma log peak of 175 counts per second was recorded from the Mount Toondina Formation at 106.6 m depth in hole BPRM002. An atypically large and most conspicuous conductivity log spike, present in every drillhole, ranged between 470 to over 600 mS per metre, and marks the base of the Bulldog Shale. Drill cuttings sampled at 2 m intervals across a lignitic unit associated with the gamma log spike in hole BPRM002 were laboratory assayed by x-ray fluorescence for uranium and thorium. This yielded a maximum uranium content of 12 ppm U that matched the peak gamma log reading, but this assay value was regarded as useful for reconnaissance purposes only due to inherent sample degradation and cation dilution caused by the drilling mud. In general, although the coal-prone Mount Toondina Formation sediments were intersected in all three holes, that interval yielded negligible lignitic material besides just the one insignificant uranium intercept. The overlying Algebuckina Sandstone and Mount Anna Sandstone, the main target intervals for sandstone-hosted uranium, exhibited porous sediments having both oxidised and reduced redox states, but gave no signs of containing any mineralisation. It was concluded by ERO that no further work was warranted on this particular geophysical prospect. From the start of 2009, the joint venture's exploration focus became diverted elsewhere than on the subject project licences, due to ongoing access for mineral explorers into the eastern part of the Woomera Prohibited Area being denied by the Australian Commonwealth Department of Defence. This situation continued unresolved for three years, and thus caused the postponement of planned further exploration on the project ground.