Exploration Licence 3089 is located in the central Gawler Craton and is centred near the township of Tarcoola. Continuation of tenure over the same area, from former ELs 1827 and 2510, was renewed by Gravity Capital Ltd on 2/6/2003, and full licence ownership was subsequently transferred one year later, on 28/6/2004, to Hiltaba Gold Pty Ltd, a wholly-owned subsidiary of Gravity Capital's new, non-diamond exploration affiliate Stellar Resources Ltd. [Reports on exploration work previously completed on the subject area by the Tarcoola Joint Venture partners, up until 20/4/2003, have been released earlier in open file Env 9312]. Following the withdrawal late in 2003 of Anglogold Australasia Ltd (ex - Acacia Resources) from the Tarcoola joint venture consortium after two years when it managed the exploration programme, thereby acquiring a large volume of new drillhole and soil sampling information from a number of narrow, high grade gold occurrences, Gravity Capital spent several months reviewing and assessing this data. Next, during March-April 2004, the licensee flew a Falcon airborne gravity gradiometer survey over amost 70% of the Tarcoola tenement area, as part of a wider survey covering three adjacent ELs (2694, 2898 and 3253). A total of approximately 30,000 line km was flown along 250 m spaced north-south lines in this survey, utilising an 80 m sensor elevation above ground in an instrument platform which also acquired complementary magnetic, radiometric and DEM data. During June 2004, new licence owner Hiltaba Gold (HIG) commenced reconnaissance RC drilling of selected surface geochemical and coincident or standalone gravity and magnetic anomalies which the company interpreted to be related to basement bodies of 'Partridge Granite' buried beneath thick Proterozoic cover sequences consisting of either Gawler Range Volcanics or Tarcoola Formation siliciclastics. 18 vertical holes were drilled for a total penetration of 1695 m, to test the Ella, Ealbara, MB South, Wiltabbie and Coolybring prospects. The RC method of drilling often proved difficult due to encountering much broken ground (fault breccias), and in many instances the Proterozoic cover section was not penetrated. Nevertheless, significant zinc mineralised intercepts were obtained at Ella prospect located 16 km ENE of Tarcoola township. Activities during licence Year 2 of EL 3089 began with follow-up rotary mud / diamond drill testing during September-October 2004 of one of HIG's recently unsuccessfully RC drilled targets, the Coolybring aeromagnetic anomaly located ~9 km north-east of Tarcoola. This programme was partly subsidised as an approved PACE Initiative Year 2 collaborative drilling project (see final report held in Env 11057). 2 vertical holes were drilled, consisting of 158 m of rotary mud precollars and 240 m of diamond 'tail' coring. Both holes intersected approximately 50 m of Tertiary and younger clay beds and 55 m of late Palaeoproterozoic Tarcoola Formation siliclastic metasediments overlying the Wilgena Hill Jaspilite. Within the target unit, drillhole WILDD004 intersected 114 m @ 39.2% Fe from 108 m depth to TD 222.4 m, while WILDD005 which was put down 730 m away to the north intersected 82 m @ 35.8% Fe from 94 m depth to TD 176 m. Both drillholes were terminated while still within strongly magnetic Wilgena Hill Jaspilite, indicating potential for further mineralisation. In addition, significant gold and base metal values were returned from both the Tarcoola Formation and Wilgena Hill Jaspilite, notably 26 m @ 88 ppb Au from 106 m depth in hole WILDD004, and 4 m @ 1.7% Pb+Zn from 118 m depth in hole WILDD005. Preliminary beneficiation testwork (Davis Tube Recovery) showed that there is potential to upgrade the iron content to above 63% Fe, however, the silica content remained high at approximately 12% for some samples. Both drillholes ended in Wilgena Jaspilite, indicating potential for further mineralisation. HIG also carried out detailed geological mapping and rock chip sampling of nearby outcrops in the Wilgena Hill area. Late in 2004, at the Ballast, Brown Hill, Dark Hill, Ella, Kychering Channel, Coolybring/Wilgena and Shudda prospects, shallow RAB and/or aircore drill programmes totalling 137 holes for 5193 m were completed by HIG in order to provide further geological and geochemical data. Several of these prospects returned highly encouraging gold and base metal intercepts. At the Ella prospect and to a lesser extent at the MB South prospect, RC drilling returned anomalous to highly anomalous base metal values, including 28 m @ 0.26% Zn (best interval 2 m @ 1.05% Zn) within Tarcoola Formation siliciclastics, highlighting the potential for Proterozoic sediment-hosted ?stratiform (sedex type) Zn-Pb-Ag mineralisation. At the Dark Hill prospect, RAB drilling returned anomalous Au + Pb-Zn(Ag) associated with interpreted intrusive rocks and Tarcoola Formation siliciclastics, returning a best intersection of 5 m @ 1.2 g/t Au, 0.21% Pb and 0.39% Zn. At the Shudda prospect, RAB drilling defined broad zones of near surface weak supergene Cu mineralisation, returning up to 23 m @ 0.21% Cu. Along the Kychering Palaeochannel gravity target, two lines of vertical aircore drilling totalling 9 holes for 786 m only intersected unconsolidated Tertiary palaeochannel sediments along one line, and sample assaying returned background uranium values only (maximum 4 m @ 4.1 ppm U from 48 m depth in hole KCAC001). During 2005-2006, further RC drilling (a total of 23 holes for 2539 m) was undertaken at the Coolybring, Shudda, South-west Wilgena Hill, Mimi, Wiltabbie and Wondergraph prospects, to either test gravity targets at depth or to follow up on previous drill results. At the Mimi, Konkaby, Peela Well and Shudda prospects, shallow RAB and/or aircore reconnaissance drilling (a total of 45 holes for 1655 m) was done to provide geological and geochemical data which could help to define the Tarcoola Basin and its boundaries. At the Coolybring prospect, further RC drilling of 9 holes for 923 m was undertaken to help assess the potential for a high grade magnetite iron ore deposit associated with BIF units of the Wilgena Jaspilite. The drilling of interpreted gravity features at South-west Wilgena Hill, Mimi, Coolybring and Wiltabbie did not return anomalous geochemistry or reveal lithological variations that could adequately explain them. At the Wondergraph prospect, follow-up drilling (8 holes for 677 m) of target areas identified in part by AngloGold Australasia and Gravity Capital's soil geochemical sampling failed to intersect anticipated gold mineralisation. At the Wilgena/Coolybring prospect, the latest drilling intersected broad intervals of target Wilgena Jaspilite, with assessment of the potential for an economic high grade magnetite iron ore deposit ongoing. At the Shudda prospect, the RAB and RC drilling defined broad zones of near- surface supergene Cu enrichment, similar to that intersected in previous RAB drilling; however, no source for the mineralisation was intersected at depth, and in particular no pointers to a sedex type copper occurrence. During December 2005, in preparation for investigating the sedimentary uranium potential of the project area, part of a reconnaissance HoistEM airborne EM survey (21 flight lines totalling about 134 line km) was flown by Stellar Resources across EL 3089 to evaluate the distribution of Tertiary palaeochannel sediments, as well as profiling major structural features and looking for sediment-hosted Mount Isa / McArthur River style base metal sulphides within the Tarcoola Formation. The entire survey covered five licences for a total 700 line km coverage, along 500 m spaced east-west or north-south flight lines utilising a 50 m sensor height above the ground surface. In July 2006 Gingertom Resources Pty Ltd, a wholly owned subsidiary of Uranium SA Pty Ltd, entered into a joint venture agreement with HIG to explore EL 3089 for sedimentary uranium mineralisation within recently AEM-interpreted palaeochannels sediments, while HIG would retain sole rights to any basement-hosted uranium or other type mineralisation. But under the terms of the agreement, subject to pre-existing royalties, Gingertom Resources could earn a 70% interest in any future demonstrated new basement-hosted mineral resource, if the in-situ value of the contained uranium exceeded 50% of the aggregate in-situ value of the total minerals within the resource. During mid-2006, based on some pmd*CRC numerical and reverse engineering modelling, the hitherto little explored eastern margin of the Tarcoola Basin became highly ranked in terms of prospectivity due to its inferred structurally associated dilation. A PACE Initiative co-funded drilling programme, designed to test the potential of this part of the basin to host stratiform Pb-Zn-Ag+Cu mineralisation within the medium to fine grained siliciclastics and lesser carbonates of the Tarcoola Formation, was therefore attempted by Stellar Resources as approved project DPY3-47. However, when the contracted drill rig could not physically gain access to the proposed drill site under its own power, and drill company management were reluctant to accept assistance (e.g. towing) in moving the rig, the planned two-hole diamond drilling programme had to be deferred. Late in 2006, an independent expert's review performed for Stellar Resources of likely gold prospectivity within the subject licence area and broader tenement package concluded that there was probably now a reduced potential for discovering sizeable economic deposits of “Tarcoola” style vein-hosted gold + Pb-Zn-Ag mineralisation. Furthermore, the review highlighted a lack of systematic follow-up exploration, in particular drilling, over broad low level gold-in-calcrete anomalies that may be associated with Challenger style mineralisation, one example being the Au anomalous calcrete that occurs along almost all of the 10 km strike of the Warburton-Tolmer ridge west of the Tarcoola goldfield. Consultant Gus Bravo believed that hidden untested gneissic rocks of the Archaean Mulgathing Complex have the best potential to deliver a sizeable economic gold deposit. Metallurgical studies regarding the technical viability of the Coolybring BIF/jaspilite magnetite deposit were ongoing. Retained samples from previous drillholes were resubmitted for check assays and for further Davis Tube Recovery testing of whether consistent production of a high grade magnetite concentrate will be achievable. During May 2007 Uranium SA, acting under the new Tarcoola Joint Venture, completed a broad-spaced, 2383.3 line km regional airborne EM (RepTEM) survey across the JV project tenements to try to better delineate previous HoistEM - defined palaeodrainage features. The survey data revealed indications of an extensive palaeodrainage system buried beneath Recent cover, which the farminee proceeded to drill in February-March 2008, with a preliminary programme of 22 vertical rotary mud holes for 982 m, which were located along station tracks. All of these holes at their completion were geophysically logged with a gamma ray - resistivity - SP tool, and were sampled for a wide range of chemical elements that might point to underlying basement-hosted IOCG or other types of uranium mineralisation. During March 2008, a ground magnetic survey was completed over the Coolybring magnetite deposit. The survey comprised 34 east-west orientated lines at 100 m line spacing, for a total of 68 line km. Station spacing was approximately 0.5 m, based on continuous reading. The survey data show a significant body of magnetite mineralisation detectable over a 1500 m strike length, and that the defined magnetite zone extends further east than had been estimated from previous drilling and aeromagnetic data. During April-May 2008, Stellar Resources undertook a 3 hole inclined and vertical RC/diamond drilling programme at the Coolybring prospect to further test the main coincident / partially coincident magnetic-gravity features for magnetite-dominant iron ore. The banded iron formation at Coolybring was now interpreted to be equivalent to the Palaeoproterozoic banded iron formations of the Middleback Range that host the magnetite ore being mined for OneSteel Manufacturing Pty Ltd’s Project Magnet. Stellar's updated interpretation of its geological data and ground magnetic profiles indicated that the BIF sequence at Coolybring has a number of similarities with the Project Magnet mine sequence, suggesting that potential may exist to locate magnetite-carbonate mineralisation in addition to high grade haematite along the prospect flanks to the north and possibly the west. The latest drilling, of 2 RC holes for 186 m plus a single diamond core hole (where hole WIL007RC, drilled initially during 2005, was extended in length to 259 m by directional HQ3/HQW coring : this hole was renamed WIL007PD), intersected an extensive quartz-magnetite + haematite BIF unit buried beneath approximately 100 m thickness of Tarcoola Formation siliciclastics and overlying Tertiary clays. The downhole width of the magnetite-bearing zone was extended to 260 m. Initial drill core sample assay results returned highly encouraging iron values, plus anomalous Zn-Pb-Ag values, present both within the Tarcoola Formation and within brecciated basement. Also during May 2008, 2 other shallow vertical diamond drillholes for 92 m were completed by Stellar Resources at the Perseverance prospect under the provisions of a licence sub-agreement with Queens Road Mines NL, to further test the continuity and grade variability of the “Pug Clay” gold zone. Both holes were cored from the surface, penetrating interpreted variably weathered Tarcoola Formation siliciclastics and clays, with drillhole METDD04 ending in basal Peela Conglomerate. No sample assay results were available at the end of the EL 3089 Year 5 reporting period.