A group of five adjoining exploration licences covering ~3300 square km situated along the southern flank of the Proterozoic Curnamona Craton (Olary Block) and the adjoining Nackara Arc of the Adelaide Geosyncline is being explored for possible economic precious and base metal mineralisation. Several metallogenetic models are applicable to this area, and have been pursued in exploration undertaken to date. They include intrusion-related copper-gold mineralisation of the Cloncurry Belt and Olympic Dam styles, intrusion-related copper-gold-molybdenum mineralisation associated with high level Cambro-Ordovician intrusive rocks, and sedex type silver-lead-zinc mineralisation of the Broken Hill and Cannington styles. During the first year of the joint venture project, Lynas Gold's exploration activities included conducting a literature search, acquiring and interpreting aeromagnetic survey data, and performing reconnaissance geological mapping and surface geochemical sampling. Several prospects of interest were tested at a later stage with RAB/aircore drilling performed in January 1998, via 36 open holes totalling 673 m of aircore, 442 m of RAB blade and 210 m of RAB hammer penetration. Even thought at an early stage, the completed exploration yielded encouraging information which resulted in the definition of a revised structural/geological model for the project area, and identified several areas of gold-copper anomalism in the Wadnaminga South district. First pass drilling results from the Blue Rose prospect within EL 2297 showed the presence of significant skarn style copper-gold-molybdenum sulphide mineralisation in altered calcareous sediments above an interpreted Delamerian Orogen high level intrusive igneous stock. In addition, the Palaeoproterozoic Outalpa Inlier within EL 2299 was shown to contain stratigraphic and structural settings that are prospective for Broken Hill - Cannington type silver-lead-zinc and intrusive - related copper-gold mineralisation. Two significant prospects, Doughboy and Faugh A Ballagh, were identified there. All of EL 2293 Mount Victor was surrendered on 2/4/1998 as part of the Olary JV Project's first partial relinquishment from five exploration licences of 4437 square km of unwanted ground (see Env 9401). During Year 2 of the project, in December 1998, an IP survey was acquired at the Blue Rose prospect to map the likely distribution of sulphides in the altered bedrock. This and other prospects within ELs 2297 and 2299 were tested with RC drilling. RC drilling at the Blue Rose prospect of 18 vertical holes for 1659 m to investigate soil geochemical and IP anomalies was successful in intersecting a broad area (~2 square km, and remaining open) of intensely altered sediments lying proximal to an interpreted shallow level granitoid. Disclosing geology that generally conforms to a porphyry/porphyry skarn model, the drillholes sited closest to the interpreted intrusive centre show barren potassic alteration with intense pyritisation, whereas more distal drillholes show a skarn-like chalcopyrite-magnetite assemblage. Significant widths of copper mineralisation were intersected in several drillholes, with a best intercept of 88 m @ 0.39% Cu made from 10 m depth in hole BRRC18. Further west by ~600 m distance, and below 40 m depth in hole BRRC16, an intercept of 40 m @ 0.26% Cu was made, including 12 m @ 0.58% Cu from 68-80 m depth. Spotty, anomalous gold and molybdenum values were also obtained, to 0.22 ppm Au and 0.12% Mo respectively, in the drill cuttings assayed from holes located further away from the intrusion centre. Elsewhere, potentially significant copper mineralisation associated with skarn style alteration was recognised at the Firestrike prospect on EL 2297, and strong cobalt anomalism in flat dipping copper and manganese oxide mineralised veins, to 3000 ppm Co, was encountered at the Thanksgiving prospect near Blue Duck Dam on EL 2295. Soil geochemical sampling (524 samples) undertaken in the Ameroo Hill area, particularly on the alluvial plain to the north of the hill, outlined several significant multi-element anomalies. During Year 3 of the project, in May 1999, Lynas Gold acquired a 110 line km detailed airborne (fixed wing) magnetic, radiometric and DTM survey over the Blue Rose prospect, along east-west flight lines 40 m apart, using a 20 m mean sensor height above the ground surface. A consultant was retained to advise on the best way forward in exploring the project ground for epigenetic copper-gold mineralisation, to generate data that would be effective in attracting a joint venture partner. He recommended doing detailed, 1:5000 scale geological mapping over geophysical anomalies, and also doing orientation calcrete geochemical sampling to see if this method has value locally as a low cost targeting tool. During Year 4 of the project the only work performed by Lynas Gold was participation in a technical research project run by CRC-LEME to investigate regolith geochemistry in the Olary Ranges region. This project was run between July 2000 and April 2001, and involved the conduct of company and PIRSA - facilitated orientation geochemical sampling and regolith studies over several zones of known mineralisation mainly located on the subject ELs 2297 and 2299. The project's final report was released in April 2001 as CRCLEME Report 156R / E & M Report 794R (this report can be accessed via the link in the Related Web URLs field). EL 2295 Yunta was fully surrendered on 11/9/2000 (see Env 9747). During Year 5 of the project, no work was done. Lynas Gold allowed EL 2191 Manna Hill to expire on 29/8/2001 without making an application to PIRSA for its renewal. Giralia Resources purchased the remaining project ELs 2297 Wadnaminga and 2299 Outalpa from Lynas Corp. and Mawson Gold in December 2001. During Year 6 of the project, Giralia undertook an evaluation of past exploration data, and commissioned a geophysical consultant to do further modelling of aeromagnetic and IP anomalies at the Blue Rose project. He recommended two locations for further exploratory drilling of a possible skarn copper resource. At the end of this year, both project licences were renewed over reduced areas, as ELs 2938 and 2939. During Year 7 of the project, in February-March 2004, Giralia performed exploratory shallow RAB/aircore drilling of 40 vertical holes for a total of 1225 m at Blue Rose and at the Dlorah prospect linear aeromagnetic anomaly lying ~16 km to the south-west, testing for secondary copper mineralisation. Thick zones of near surface, low grade copper-gold mineralisation were intersected at Blue Rose, e.g. 36 m @ 0.68% Cu from 4 m depth to end of hole in RABR186, with 3 m @ 0.25 g/t Au from 37 m to EOH, and 30 m @ 0.60% Cu from 7 m depth to end of hole in RABR191, with 6 m @ 0.17 g/t Au from 31 m to EOH. The 22 holes drilled on four traverses at Dlorah (RABR157 - RABR178) encountered calc silicate skarn and micaceous sediments having minor quartz veins. A best mineralised intercept of 4 m @ 0.47 g/t Au was made in hole RABR175 from just beneath the ground surface. Acting on the recommended work programme of Keith Wells, regional prospecting on EL 2938 and rock chip sampling (5 samples) of sparse outcrop encountered anomalous copper and molybdenum associated with widespread quartz-sericite-pyrite greisen alteration in the roof zone of the Anabama Granite. No work was done on EL 2939 in this reporting year. During Year 8 of the project, in November-December 2004, two detailed ground gravity surveys totalling 968 stations were acquired over two grids located on both project licences. Gravity data read on a 20 square km grid centred on the Blue Rose prospect revealed numerous gravity lows that were interpreted to represent buried intrusive stocks with potential for porphyry style mineralised aureoles. Gravity data read on a grid at the Faugh A Ballagh prospect on EL 2939 defined a gravity high along strike to the west of the historic copper-gold workings. This anomaly may have IOCG potential, as it lies adjacent to a strong magnetic anomaly. During Year 9 of the project, activities comprised the conduct of three drilling campaigns at the Blue Rose copper-gold prospect and surrounds on EL 2938, plus rock chip geochemical sampling and reconnaissance geological mapping performed at the Domenic prospect located on EL 2939. The EL 2938 drilling was designed to: • test the extents of oxide copper mineralisation at Blue Rose; • obtain drill core to determine the orientation of sulphide mineralisation beneath the Blue Rose oxide deposit; • test a magnetic anomaly along strike from Blue Rose which was interpreted to be part of a porphyry style deposit; and • provide first pass geochemical coverage over five regional aeromagnetic anomalies having characteristics similar to those seen at Blue Rose. Late in 2005, PacMag Metals entered into a joint venture for the project with Giralia, and took over operating the licences. On 13/11/2005, EL 2867 Benda which had been part of the Blue Rose Project since November 2001 was fully surrendered at licence expiry, without an application being made to PIRSA for its renewal (see this licence's final report, held separately in Env 11090). Two RAB/aircore drilling campaigns were conducted at Blue Rose in August-September and in November-December 2005, totalling 122 holes for 4553 m. The drill results increased the known extent of copper-gold oxide mineralisation to a total length of 950 m, and showed that mineralisation remains open along strike to the west, east, and at depth. Beyond the current limits of mineralisation, widely spaced holes up to a further 500 m to the west intersected >0.5% Cu, and one step out hole 400 m to the east returned 39 m @ 0.21% Cu along a magnetic anomaly similar to that associated with the established mineralised zones, suggesting potential for further strike extensions. Latterly, some broadly spaced aircore holes were drilled across two magnetic highs having a similar signature to Blue Rose, that are located 1.2 km west and 1.5 km north-west of there. These holes returned anomalous copper intercepts which ranged up to 3 m @ 0.31% Cu, thus highlighting the very large extent of the Blue Rose mineralised envelope. Sighter metallurgical testwork was conducted on two samples of the oxide ore, at AMMTEC Ltd in Perth under the supervision of Metallurgical Project Consultants Pty Ltd, to test its amenability to acid leaching for copper recovery. The following conclusions were drawn: - copper extraction was 85% from one sample and 58% from the other, thereby indicating amenability to acid leaching, even though the preliminary mineralogical assessment indicated a relatively complex ore mineralogy; - copper extraction in a full scale metal recovery operation would likely be higher than that achieved by the preliminary laboratory test, given that leaching of copper was continuing at test termination; - the impact of particle size on leach extraction was considered to below, suggesting that heap leaching would be a viable process option. The next phase of work will aim at identifying the optimum crush size for heap leaching, and generate preliminary data required for economic evaluation, including about acid consumption and amenability to percolation. In January 2006, to test two copper–gold sulphide targets at Blue Rose, PacMag drilled 4 NQ2 diamond tail cored holes for 1157 m plus 3 RC precollars for 290 m, with funding support granted by the SA Government under its PACE Initiative and administered by PIRSA (see the final report for approved collaborative drilling project DPY3-02, held separately in Env 11141). Holes BRDD001 and BRDD002 were drilled as diamond tails to existing RC holes BRRC035 and BRRC029 respectively, with the specific aim of obtaining orientated drill core from the monzonite porphyry dykes that are the interpreted source of copper, gold and molybdenum mineralisation. Unexpectedly however, for the most part both of these holes intersected a barren quartzite bed sequence that dips parallel to the holes’ trajectory, obviously because of unforeseen folding of the wall rock package. In its final portion, vertical hole BRDD001 did reach the proximal skarn sequence, wherein the last 24 m of cored hole averages 0.2% Cu. Hole BRDD003 inclined at sixty degrees southwards successfully penetrated a skarn altered rock sequence over a 127.3 m thick interval below 94.4 m downhole depth. This interval contained three best intercepts of 10.0 m @ 0.64% Cu and 0.25 g/t Au, 13.8 m @ 0.1% Mo, and 14.5 m @ 0.60% Cu and 0.12 g/t Au. Drilling was abandoned prematurely at 227.8 m downhole depth due to hole collapse when coring in altered copper-rich (>0.1% Cu) rocks. The fourth diamond hole at Blue Rose was designed to test an inferred porphyry copper-gold target which, based on Pacmag’s geological and geophysical modelling, was thought to possibly be analogous in setting to the world class Cadia-Ridgway deposit of west-central NSW. This high risk deep vertical hole, BRDD006, also received PACE Initiative Year 3 subsidy funding as approved project DPY3-03 (for the drilling final report, see Env 11140). Taken to a total depth of 440.0 m, it encountered altered and sulphidic (pyrite) - rich sedimentary rocks, with minor copper sulphides, in the buried Neoproterozoic basement: however, no significantly magnetic rocks capable of explaining the modelled magnetic target were penetrated. 31 grab rock chip samples collected at the Domenic prospect on EL 2939 returned promising high primary uranium suite assay values (up to 2.2% U3O8, 2.7% Th, 0.25% Ce and 0.09% La) associated with a feldspar dominant pegmatite. This prospect is one of eight targets which were identified by PacMag's reprocessing of regional airborne radiometric survey data as having IOCG-related potential. Four of the targets have so far been inspected on the ground. PacMag was also aware that earlier aircore drilling at the Blue Rose prospect had intersected some minor anomalous uranium geochemical values (to 0.01% U3O8) which are associated with shallow palaeochannel sequences above the copper prospective bedrock. More attractive uranium - specific palaeochannel targets occur further south of existing drilling, close to the Anabama Granite pluton, a potential source rock for uranium shedding into surrounding palaeochannels, and one of these targets will be tested soon. During Year 10 of the project, PacMag continued to assess the extent of oxide copper mineralisation at the Blue Rose prospect via a further campaign of aircore drilling, which also tested three more of the nearby magnetic targets on EL 2938, within a 15 km radius, for any similar mineralisation. In addition, on EL 2939 further geological mapping and rock chip sampling of outcrops at possible primary uranium mineralised airborne radiometric targets was undertaken. Drilling of 75 vertical aircore holes for a total of 2820 m served to extend the known Blue Rose shallow sub-horizontal oxide copper mineralisation zone to a cumulative strike length of 1 km. Further step out drilling was planned, heading towards the west by >250 m, to try to extend the mineralised zone along there. Shallow, broadly spaced reconnaissance aircore drilling at two of the distal magnetic targets, Round Hill and Target-10, intersected altered sedimentary and granitic rocks equivalent to those at Blue Rose, which yielded anomalous copper assay results. At Round Hill, up to 19 m @ 200 ppm Cu was encountered over a 400 m drill traverse width comprising 100 m spaced holes. At Target-10 a single hole intersected anomalous copper within schists which appeared to be similar to the rock type that hosts a portion of the Blue Rose deposit. One uranium target close to the Anabama Granite pluton was drilled, and revealed anomalous rare earth element contents in cerium and lanthanum, but only weakly elevated uranium, from altered granitic rocks. A new surface occurrence of anomalous uranium geochemistry was found on EL 2939 by rock chip sampling that was done 650 m to the south, across a soil-covered plain, from the Domenic prospect. Six samples taken from a 100 m x 50 m area of quartz veined gneissic outcrop defined a 10 m wide x 30 m strike length zone which returned four high grade uranium assay results of between 0.29% and 0.73% U3O8, plus significant rare earth element values of up to 0.26% Ce and 0.31% La. Handheld scintillometer radioactivity readings taken over the zone ranged from 1400 to 12,000 counts per second, and an extension of the radiation survey made across pegmatitic outcrop to the west returned radioactivity readings of up to 2500 cps. PacMag believed that this uranium occurrence could have significant exploration potential given that the high grade rock chip results are located on the edge of outcrop, with the prospective area covered by soil to the north and along strike to the east. Also, it was thought that there has not been any previous significant exploration performed on this prospect using modern exploration techniques. During Year 11 of the project, exploration activities on the Olary JV Project comprised: • the conduct of an aircore drilling campaign at the Blue Rose prospect and surrounds on renewed EL 3848; • acquisition of a 3D IP survey at the Netley Hill prospect located on EL 3848, followed by PACE Initiative Year 5 - subsidised diamond drill testing of that prospect's known copper-molybdenum porphyry style mineralisation; • re-modelling of geophysical targets on EL 3849 Outalpa; and • the conduct of aboriginal heritage protection work area clearance surveys, to enable planned drill testing of these modelled targets. Over the period June-July 2007, Pacmag acquired a 34.4 line km 3D IP survey over a 3.2 km x 2.4 km grid laid out at the Netley Hill prospect, along lines 200 m apart, using a station interval of 100 m. The survey was designed to obtain chargeability and resistivity information down to 500 m depth, directly beneath strongly anomalous copper and molybdenum intercepts which had been made in historic late 1960s shallow percussion drillholes covering a 1.5 km x 600 m area, that were located at the centre of a 5 km diameter bulls-eye magnetic anomaly (see Env 1088). A 3 km long x 1 km wide, NE-SW aligned IP anomaly was detected by the new work that underlies most of the survey grid and exhibits strong conductivity characteristics persisting between the near surface and 450 m depth. Over the period August-September 2007, PacMag drilled 102 vertical aircore/RAB holes for 2732 m, in part to test six aeromagnetic anomaly targets along strike from the existing oxide copper mineralisation at the Blue Rose prospect, as well as to provide additional sample material for planned future metallurgical testwork on Blue Rose copper oxide mineralisation. The brownfields reconnaissance holes, put in at 400 m x 100 m spacing, were successful in revealing several wide intervals of strongly anomalous copper, such as in hole RABR689 located 1.6 km north-west of Blue Rose, which encountered 14 m @ 0.1% Cu (to end of hole) from the depth interval 20-34 m. The last of the newly drilled holes put in at Blue Rose, RABR822, located in the centre of the eastern orebody zone and drilled for the purpose of obtaining ore samples for metallurgical processing tests, made an intercept of 46 m @ 2.2% Cu and 0.8 g/t Au from 11 m depth, which, importantly, is a much higher assayed copper grade than any other previously obtained from sampling drillholes at this deposit. Notably, several individual downhole 1-metre drill cuttings samples in this particular hole graded up to 6% Cu and 3 g/t Au. In November 2007, an application was made to PIRSA for the grant of PACE Initiative Year 5 funds to help the Olary JV partners investigate the stratiform hydrothermal zinc mineralisation potential of anomalous Palaeoproterozoic schistose bedrock concealed beneath a soil plain to the north of Ameroo Hill. A maximum very shallow RAB-drilled zinc geochemical anomaly of 2600 ppm Zn is there associated with the western end of a strong magnetic high plus a well defined electromagnetic conductor (revealed by both moving loop and fixed loop ground EM surveys done in 1996) that had been modelled as a steeply dipping (-60 to -80 degrees) tabular feature approximately 750 m in strike length, with a top at 110 m depth and depth extent of 300 m. PacMag's remodelling of the EM data indicated that the drilling done in 1998 by Lynas Gold had not adequately tested this EM anomaly, as that company's holes were collared in positions that are too far back over the top of the modelled body. Therefore a PACE drilling programme of two 300 m deep RC holes with diamond cored tails was proposed by PacMag to definitively test the Ameroo EM target. But the proposed work (copy of the grant application document included herein) was not approved by PIRSA as it did not meet all of the criteria for receiving publically-funded support. However, to compensate, in January-February 2008 PacMag was instead able to drill 4 vertical or inclined wholly diamond cored holes for 1396.5 m at Netley Hill prospect with $100,000 of assistance from PIRSA via a PACE Initiative Year 5 approved collaborative drilling project subsidy, to try to identify the source of the large IP anomaly recently recorded there (see the final report for PACE Project DPY5-05, held separately in Env 11576). All four broadly spaced holes penetrated medium grained equigranular biotite rich granite, and in hole NTDD003 one single discrete zone (285-338 m) of fine grained quartz monzonite porphyry. Strong alteration is present throughout the felsic igneous bedrock in all holes and consists of two types: • Potassium feldspar (pink) selveges around quartz-pyrite veinlets and fractures (that locally contain chalcopyrite). The selveges range in width from 0.5 cm up to 50 cm; wider ones occur where multiple veins coalesce or have enough density to cause selvege overlap. • Sericite +-pyrite veins and selvedge. This alteration phase appears to be later, since it overprints the earlier K-feldspar alteration described above. The sericite altered zones commonly contain 1% to 3% disseminated pyrite, the total pyrite content rising to 5% or more where pyrite and quartz pyrite veins are present. In addition, 1% to 2% magnetite is present in the sericite altered zones as small discrete magnetite grains and grain clusters, while larger quartz-magnetite veins occur sporadically. Very fine-grained copper sulphides and molybdenite are present as blebs, grain clusters and micro-veinlets. Drill sample assaying returned a best mineralised intercept, from vertical hole NTDD001, of 40 m @ 0.05% Mo and 1 g/t Ag from 11 m depth, including 7 m @ 0.07% Mo from 11 m, and 6 m @ 0.06% Mo from 22 m. Other wide zones of pervasive disseminated and vein hosted lower grade copper and molybdenum sulphide mineralisation averaging 0.1% Cu, 0.015% Mo and 1g/t Ag were intersected over the length of this 350 m deep hole, and are regarded as forming the source for the targeted IP anomaly.