A group of ten, mainly adjoining licence areas occupying the plains surrounding the northern end of Lake Torrens, are now being jointly explored for possible economic buried Olympic Dam style IOCG related mineralisation that may have formed in the Mesoproterozoic basement, as well as for any substantial Mount Isa/Nifty style stratabound copper or lead-zinc deposits that may have formed in Neoproterozoic Stuart Shelf or Torrens Hinge Zone older cover rocks, or in Cambrian Arrowie Basin metasediments. During the first year of project joint reporting, project owner/operator Tasman Resources NL (Tasman) moved on from its former emphasis on using geophysical and surface geochemical exploration methods, to embark on a prospect inventory drill testing stage. An initial exploratory percussion and diamond drilling programme was undertaken at the Chudy’s base metal prospect within EL 3209, approximately 40 km north of Olympic Dam. A deep diamond drilling program was also carried out at the Titan and Marathon South prospects, also within EL 3209, by WCP Resources Ltd (WCP) who was operating separately under a joint venture agreement [N.B. its work is separately reported within this Env]. Tasman's drilling of 5 vertical RAB percussion and partly cored holes for 2816.1 m at Chudy's prospect over the period June-August 2007 was designed to test beneath its previously defined soil geochemical anomalies for signs of Mississippi Valley type Pb-Zn mineralisation associated with a postulated basin margin fault cutting the Cambrian Andamooka Limestone. The holes were precollared to depths of 78 m to 109 m into the Andamooka Limestone, following which two of the holes were diamond cored to reach the target unconformity on top of the Adelaidean Yarloo Shale underlying the limestone. A third partly cored hole was abandoned at 200 m depth near the base of the limestone due to bad ground conditions. Apart from encountering some minor chalcopyrite near the base of the limestone (a feature which is common regionally), no visible base metal sulphides were intersected in the 433.9 m of drill cores or in the RAB drill chips, and hence the soil anomalies remain unexplained. Over the period July-August 2007, WCP drilled 8 deep exploratory RC precollared diamond drillholes for 7585.9 m on EL 3209; six at the Titan prospect and two at Marathon South. All of these holes targeted the sources, hidden beneath >550 m of cover, of apparently coincident gravity and magnetic anomalies, to investigate their respective IOCG potential. Both prospects had been previously drilled by Tasman (Marathon) and WMC and Tasman (Titan), with varying degrees of mineralisation and alteration intersected. The results of the drilling at Titan were encouraging, giving indications of the past existence of a significant IOCG mineralising system associated with intense haematite-magnetite alteration. The mineralisation is confined to the spine of the gravity and magnetic anomalies, with holes on the flanks (i.e. TI010 and TI011) not being mineralised. WCP decided that, given the size of the system, further work was warranted to locate possible higher grade zones; however, given the depth to top of basement and the concomitant drilling expense, a thorough targeting process would be required before any further drilling was carried out. This should involve a review and interpretation of all available data. The Marathon South drilling results were less encouraging, echoing results from previous drilling, but WCP also felt that a thorough data review would be required before any decision was made on further on-site work at this prospect. During the 2008 Project year, Tasman did no field work. However, its earn-in partner WCP acquired a detailed helicopter-supported gravity survey in February 2008 on parts of ELs 3177, 3209 and 3175, when a total of 1354 stations were read to infill historic survey coverage in order to provide a nominal 1 km station spacing across the entire southern part of the project ground where the depth of cover had been modelled to be 10 square km) Aboriginal heritage site. However, to try to partly circumvent this inconvenience, Tasman decided to proceed with drilling a single deep vertical exploratory diamond hole at Vulcan on a relatively small density high on the north-western margin of the main gravity anomaly of interest, from a site lying adjacent to an old (1980’s) borrow pit on the nearby Borefield Road. Over the period October-November 2009, RCDD09VUD001 (VUD001) was RC percussion precollared to 153.2 m depth within the Andamooka Limestone, before the rig switched to continuous NQ2 diamond coring which was carried at that gauge all the way to the end of the hole at 1113.3 m depth. A normal Stuart Shelf Cambrian and Neoproterozoic stratigraphic sequence was intersected, ending in the Tapley Hill Formation. Beneath the basal Tapley Hill Formation unconformity at ~870 m depth, basement was penetrated which comprised IOCGU (Olympic Dam) style pervasively altered and weakly mineralised sediments and (probable Gawler Range Volcanics) volcanic rocks. These altered rocks are now dominated by a haematite-carbonate-sericite-chlorite and sulphide (dominantly pyrite, but with minor chalcopyrite) mineral assemblage. A best intercept of 1 m @ 0.38% Cu, 0.18 g/t Au and 0.018 kg/t U3O8 from 928-929 m was recorded, from within a broader envelope over the depth interval 907-960 m which returned average assay results of 0.10% Cu, 0.04 g/t Au, 0.021 kg/t U3O8 and 0.04 g/t Ag. Average drill core sample assay values for key IOCGU - associated elements contained in the upper 103 m thick interval of the basement (i.e. for Cu, Au, U3O8, Ag, Fe and S) showed that there is a strongly enriched correlation between them, indicating that IOCGU mineralising processes had once been active. In addition, anomalous levels of other elements such as arsenic, molybdenum and fluorine are present. The licensee concluded that, despite being drilled some distance away from the main peak of the target gravity high, the initial drillhole it had put in at Vulcan had nevertheless discovered part of a new IOCGU epithermal/hydrothermal system. This very encouraging result was announced to the Australian Stock Exchange on 10/12/2009. Based on available geophysical data and a mineralogical comparison with researched IOCG systems such as Olympic Dam, VUD001 appeared to have “clipped” the north-western corner of a potentially much larger mineralised system. The mineralogy, grade and style of the mineralisation in VUD001 was believed to be more characteristic of the deeper and more lateral zones of an Olympic Dam-type system, having reference to the following known traits: • at Olympic Dam, high grade copper-uranium mineralisation (dominated by a copper sulphide mineralogy relatively rich in bornite or chalcocite) and the highest grade gold zones are spatially located towards the central and upper parts of the deposit; and • lower grade mineralisation at Olympic Dam is characterised by a sulphide mineralogy dominated by pyrite and chalcopyrite (and a lack of the sulphides bornite and chalcocite) and relatively high levels of carbonate minerals such as siderite. In VUD001 at Vulcan, the sulphide mineralogy is essentially pyrite with lesser chalcopyrite, and carbonate (mostly siderite), implying that, by analogy with the actual progression of the Olympic Dam appraisal, future stepout drilling at Vulcan should focus on the central parts of the system or gravity anomaly. 9 selected drill core samples from VUD001 were sent off for detailed petrological description. Late in 2009, the VUD001 hole collar and drill site were fully rehabilitated, and a rehabilitation report was submitted to PIRSA. Earlier in the year, Tasman had conducted further rehabilitation of its previous deep drilling sites at Titan prospect, and a separate report documenting this work was also submitted to PIRSA. During the year approximately 40% of the combined areal extent of the Lake Torrens Project tenements was relinquished, due mainly to access problems stemming from Aboriginal heritage issues, besides recent downgrading of the prospectivity of certain areas and the emerging difficult global economic climate for exploration. During the 2010 Project year, Tasman's exploration activities comprised: • acquisition in the Vulcan prospect area during February of a further, 149 station infill gravity survey over a regular 600 m x 600 m grid; • geophysical modelling of all available gravity and magnetic data for the Vulcan and Zeus prospects; • acquisition and interpretation of a 13.7 line km 2D seismic reflection survey along three traverses crossing Vulcan, involving two west-to-east profiles and one north-to-south; • drilling of 4 additional deep RC/diamond cored exploratory holes at Vulcan with a total penetration of 4642.3 m (the work in part subsidised by a PACE Initiative Year 6 collaborative drilling grant, as PIRSA's approved project DPY6-02 [for details, see this project's final report held separately in Env 12129]; • the conduct of Aboriginal heritage protection work area clearance surveys; • making further endeavours to resolve the exploration access exclusion over a large (>10 square km) recently designated heritage site covering a large part of the southern (and possibly most prospective) section of the Vulcan prospect; and • rehabilitation of drill sites and access routes. All of the new holes (VUD002 to VUD005) were RC precollared through part of the sedimentary cover sequence to depths of around 150 m to 185 m, and were then continued with HQ/NQ2 diamond coring to total depths of between 990.7 m and 1413.5 m. Most encouragingly, holes 2, 3 and 4 encountered significant IOCGU style alteration and mineralisation, with VUD003 intersecting multiple mineralised intervals between 874.2 m and 949.5 m depth, aggregating 61.48 m thick. Here drill core sample assay grades ranged up to 7.82% Cu, 2.41 g/t Au, 0.584 kg/t U3O8 and 5.8 g/t Ag as returned by thin (10 square km) recently designated heritage site covering a large part of the southern (and possibly most prospective) section of the Vulcan prospect. All of the new holes (VUD006 to VUD008) were RC precollared through part of the sedimentary cover sequence to depths of around 150 m to 186 m, and were then continued with HQ/NQ2 diamond coring to total depths of between 1079.5 m and 1227.8 m. VUD006 was collared at a position in between the mineralised hole VUD003 and the relatively barren, but highly altered, VUD005, and was drilled vertically to a total depth of 1083.9 m. It encountered within the basement below 856.2 m depth a thick zone of alteration and weak mineralisation, but found no significant stronger mineralisation. VUD007 was collared at a much removed (by ~4 km) position on the far eastern “limb” evident in the gravity anomaly, partly as an attempt to “open up” a new part of the Vulcan target and determine if the eastern part of the gravity anomaly was prospective, and if so, add confidence to the interpretation that the southern, large untested part of the anomaly (off limits due to a reported Aboriginal heritage site) is the most prospective part of the Vulcan target. This hole intersected a very thick (~163 m) zone of “classic” IOCGU-style haematite-rich breccia with disseminated pyrite, chalcopyrite and minor molybdenite. While the tenor of the mineralisation is relatively low grade (e.g. 0.23% Cu, 0.08 g/t Au), Tasman believed that the find was a very significant result. VUD008 was collared at a site to the far north of the target, ~1 km north of the existing traverse of holes VUD001 to VUD004. It too encountered a thick (~180 m) zone of IOCGU-style mineralisation and alteration. The mineralisation here has much higher Cu/S ratios and average Au contents than that of previous drillholes, and interestingly, contains minor disseminated bornite in one part of the hole. Average drill core sample assay values over the depth interval 899.75 m to 1079.5 m (EOH) were 0.19% Cu, 0.1 g/t Au, 0.1 g/t Ag, 0.017 kg/t U3O8 and 0.01% Mo. 7 selected drill core samples, one from VUD005 and six from VUD007, were sent off for detailed petrological description. 7 selected drill core samples from VUD002 were assayed for a suite of rare earth elements. In October 2011, Tasman announced that it had signed with Rio Tinto Exploration Pty Ltd (RTE) a conditional exploration joint venture agreement covering EL 4322 Andamooka North (formerly EL 3209). Under this agreement, RTE has, subject to resolution of an Aboriginal heritage - related access issue, to provide Tasman with $10 million, from which funds Tasman will conduct and manage an agreed IOCGU exploration programme. Prior to making this arrangement, Tasman over the 5-year period since the grant of Amalgamated Expenditure Status on its original Lake Torrens Project tenements had spent ~$10.1 million on mineral exploration (139% of licence combined expenditure commitments).