As part of regional exploration for possible economic sandstone-hosted Tertiary palaeochannel uranium deposits within a project area extending eastwards from Lake Callabonna to the SA-NSW State border, licensee Frome Uranium has relied on airborne EM surveying to locate buried conductive sand bodies that may be palaeochannels meriting drill testing. The company acquired a semi-detailed AEM survey across the project ground during April 2008 (total coverage 3684 line km flown along 1 km spaced east-west lines with a 30 m sensor height above surface). Due to problems in subsetting the EM data relating only to the now relinquished tenement portion, current project operator Callabonna Resources has given DMITRE permission to release on open file all of the EM and aeromagnetic data recorded by this survey. Following the completion of consultants' outsourced data quality checking and image processing of the EM data, the licensee performed an interpretation of this data and selected targets for a Phase 1 drilling programme. The drilling was carried out during Year 3 of the project, with assistance from PACE Initiative Year 6 subsidy funding (cf. Env 12174). 72 vertical rotary mud or aircore drillholes with a total penetration of 9041 m were completed along 5 traverses, but only 3 of these drillholes, completed during August 2010, lie within the now relinquished portion of EL 3842. No significant uranium mineralisation was indicated by downhole gamma ray logging of the latter. The licensee's subsequent review of all drilling and airborne EM results (including the detailed data from the recent Commonwealth Government and DMITRE operated Lake Frome region basin-wide AEM survey to which Callabonna also contributed) has led to a re-interpretation of the regional stratigraphy. Consequently, future project drilling will focus further to the west of the areas drilled during 2010.