After licence management was returned to Reedy Lagoon for a third time, the licensee studied Cauldron Resources' 1996 aeromagnetic data and identified an additional three magnetic anomalies (EC23, 26 and 27) possessing possible kimberlite traits. During November 1998, Reedy Lagoon was able to attract Alphadale/Werrie Gold as a fourth prospective joint venture partner on EL 1929, and various joint field-based prospecting activities were carried out over the following year. They included diamond prospect geological and geomorphological mapping, rock chip (32 samples) and stream sediment (12 samples) sampling via hand sieving and panning to obtain heavy mineral separates for DIM observation, shallow power auger drilling of 83 holes beneath cover to obtain comparable samples for processing ditto, and generation of a revised exploration model for locating likely buried kimberlite intrusions and inferred overlying weathered and collapsed volcanic crater fill material. Werrie Gold decided that the G1 magnetic anomaly on The Gauntlet prospect had the most closely matched attributes to a buried volcanic crater, and so completed a single vertical RAB/rotary mud drillhole at the centre of it during July 1999 (hole G7 taken to a TD of 326 m). The hole bottomed in what was thought to be either Mesozoic crater fill material, or older, fault disrupted Permian carbonaceous sediments. These sediments were found to contain a number of rare chrome spinel diamond inclusion grain species (5 out of 42 grains) which could perhaps have kimberlite affinity, so one possible conclusion was that the magnetic source, if a kimberlite, must lie deeper still. The new joint venturers, with the assistance of consultant geophysicist Hugh Rutter, also scoped two inferred Olympic Dam type basement-hosted IOCG prospects, Herakleion and Santorini, that show coincident magnetic and gravity anomalies plus stream sediment base metal geochemical anomalies. These were both mapped as having a spatial association with large tectonic lineaments, near where historically worked copper-gold mineralisation occurs. When Werrie Gold left the EL 1929/2622 joint venture at the end of 1999, Reedy Lagoon continued with an aerial photo interpretation study aiming to pick possible surface morphological expressions of buried collapse structures. Twelve such localities were picked out. During August 2000, a geologist from Billiton Exploration Australia Pty Ltd made a visit to the Edward Creek Project and collected 11 rock chip samples to evaluate geochemically for IOCG mineralisation pathfinder elements. Anomalous light rare earth element (Ce, La and Y) values were returned from the vicinity of Herakleion prospect, significant given the spatial association with known high Cu and elevated U found at the Coominaree mine prospect. During the period October 2001 to April 2002, Reedy Lagoon commissioned consultant Hugh Rutter to perform reprocessing and computer image interpretation of all available aeromagnetic data. This work identified 16 plausible kimberlite magnetic signatures within the project tenements, six of which are located on EL 2622. Major copper explorer Phelps Dodge Australasia, Inc. entered a fifth joint venture agreement with Reedy Lagoon Corp. on 31/10/2001, whereby it could earn a 70% interest in base metals at the Edward Creek Project. Under the terms of this agreement, Phelps Dodge sole funded a detailed 543 station ground gravity survey acquired during November 2001, which comprised 411 stations of infill coverage at the two IOCG prospects, and 132 stations read along single line traverses over four kimberlite targets. Following interpretation of the new gravity data, a field trip was undertaken during February 2002 to choose drilling locations over gravity highs at the IOCG prospects. However, Phelps Dodge subsequently withdrew from the joint venture on 8/3/2002. During May 2002, Reedy Lagoon was able to obtain Native Title heritage protection clearances for four priority drill sites to test two gravity features at Herakleion prospect. 3D inversion modelling carried out for the licensee by consultant Chris Moore generated models which supported Reedy Lagoon's interpretation of high density basement material existing at shallow depths in positions offset from highly magnetic rocks believed to be monzonites. Reedy Lagoon signed an agreement with Redport Limited, Axburgh Investments Pty Ltd, Jagen Pty Ltd and Sked Pty Ltd on 30/6/2003, giving those companies an option to farm-in and thereby earn an 80% interest in base metals only on the three Edward Creek Project licences (ELs 2622, 2755 and 2872). Under the terms of the agreement, the new joint venture consortium committed to fund the costs of a drill programme to investigate the Herakleion prospect. No field work took place on EL 2622 over the period March 2002-November 2003; instead the licensee undertook office studies including further diamond exploration-related geophysical data interpretations. In late November-early December 2003, base metal exploratory drilling was resumed, when 2 vertical fully-diamond cored holes for 469.6 m were drilled to test buried basement at separate sites located adjacent to the main monzonite intrusive pipe and at a nearby uplifted block on gravity Target 2 on the Herakleion prospect. The deepest hole, HD02 with a TD of 399.25 m, was terminated in Neoproterozoic banded grey shale after the hole had remained in Ordovician diapiric breccia strata over most of its length. The source for the targeted gravity high anomaly was not penetrated, since density measurements made on core samples from HD01 and HD02 did not find any rocks dense enough to account for it. Multi-element assaying of the cores returned elevated but low tenor Cu, U, LREE, F, Ba and Co values. Also during December 2003, two shallow rotary mud drillholes for a total 153 m were completed on EL 2622 to probe different parts of the WK57 kimberlite magnetic anomaly. 13 possibly kimberlitic chromian spinel grains and 1 kimberlitic picroilmenite grain were recovered from a clay layer encountered in hole WK57-02. Furthermore, other occurrences of diamond indicator minerals (DIMs) i.e. pyrope garnets and possibly kimberlitic chromian spinel grains, were recovered from drainage and loamscrape samples collected over and in the immediate vicinity of potential kimberlite magnetic anomaly targets WK 58 and WK 59. To obtain better definition of the Herakleion prospect source anomaly for IOCG target density modelling, a very detailed 200 m x 200 m station spaced gravity survey was acquired there on a 10 km x 7 km grid during June 2004, with a total 1878 stations read. The new data revealed four prospective dense zones within an area 8.5 km x 3.5 km that is defined by a major fault to the east and a dipping boundary to the west, and is segmented by cross-faulting. The dense zones produce residual gravity highs of up to 7.4 mGal amplitude, and were interpreted to be caused by haematitic brecciated rocks lying at depths of 425 to 475 m below the surface, therefore requiring more and deeper drilling to resolve their nature. Consequently, the JV consortium drilled another fully cored vertical diamond hole at the Herakleion prospect during late November-early December 2004 (HD03 completed to TD 612.4 m; this hole was started from surface after many failed attempts had been made to re-enter and extend HD02). However, again the rock density measurements made on drill core samples did not account for the targeted gravity anomaly. HD03 was terminated within thinly banded, trace magnetite/haematite-brecciated and extensively veined and altered interbeds of calcareous sandstone and mudstone, penetrated beneath multiple diapiric brecciated intervals and some wide sills of monzonite having chill textures and sheared margins. The drilled sequence appears to be increasingly strongly sheared and faulted with depth, and exhibits retrograde sericite-chlorite-talc-serpentinitic alteration. In places the character of the monzonite intersected in HD03 was observed by Reedy Lagoon to approach that of the rocks intersected in HD02 between 120 m to 200 m, which were previously interpreted to be a rafted block of basement. It was thus now thought more likely that HD02 did not intersect rafted basement rocks. During 2004-2005 the joint venture also performed a check of Ashton Mining's 1981 airborne radiometric data, aiming to locate any significant surface uranium anomalies that are associated with areas surrounding the Herakleion prospect and Last Chance mine prospect. Hugh Rutter reported in May 2005 that 16 + 6 such anomalies respectively warranted ground follow-up with geological mapping and local spectrometric surveys. Several sites of anomalous uranium mineralisation identified in the airborne radiometric data were investigated during August-September 2006. From ground inspection of the War Loan South (A1) uranium radiometric anomaly, the radiation was found to be associated with an area at least 200-300 m in diameter, of partially exposed bedrock. Anomalous mineralization was identified in eight surface rock chip samples recovered from this area. The samples comprise interpreted Early Proterozoic basement tuffaceous rocks, and their significance at this stage is unknown. Best assays included: • 3040 ppm Cu, 45.6 ppm U, 289 ppm Zn, 210 ppm Ni, 4590 ppm Mn, 332 ppm Co and 45.6% Fe (from sample EC35) • 614 ppm Cu, 12.5 ppm U, 27 ppm As, 4040 ppm Mn and 43.2% Fe (sample EC34) • 281 ppm Cu, 11.3 ppm U, 479 ppm Zn, 185 ppm Ni, 3140 ppm Mn, approx. 0.12% REE (including 308 ppm Ce, 45.6 ppm Gd, 225 ppm La, 256 ppm Nd, 71.2 ppm Pr, 51.9 ppm Sm), 10 ppm Se and 36.8 % Fe) (sample EC36) • 6 ppb Au (sample EC32) During August-September 2006, the joint venture consortium drilled fully cored vertical exploratory diamond hole HD04 to a depth of 724.6 m on Target Area 1 of the Herakleion prospect, where haematitic float debris had been mapped at surface. However, the drill rods became bogged at 727.7 m depth while coring in Coominaree Dolomite, so the hole was wedged off there, and then was successfully continued to a final total depth of 934.1 m. It ended within ?Palaeoproterozoic fine-grained arenite - calcsilicate rocks. No significant mineralisation was identified. 45 selected chip sample composites over 10 m drill core intervals in hole HD04/HD04a were taken for assay. Best results were: • 55 ppm Cu, 6 ppm U, 1540 ppm Mn and 1150 ppm Ba from the depth interval 655-665 m • 10.8 ppm U and 30 ppm As from 820-830m • 9.4 ppm U from 840-850 m From geological logging of the drill core, the top of the pre-Adelaidean basement was interpreted to lie at 669.3 m depth in hole HD04. A petrologist's examination of underlying drill core samples from 707 m, 743 m and 791 m depth identified these rocks as representing probable Palaeoproterozoic or Mesoproterozoic basement. Because known Olympic Dam style IOCG mineralisation in South Australia occurs in rocks of Mesoproterozoic age or older, the identification of rocks of this age below 669.3 m depth in the drillhole helped to support the exploration model. However, the lack of mineralisation and absence of any recognisable “Olympic Dam type” alteration in the basement rock cores recovered from HD04/HD04a served to downgrade the IOCG potential of Target Area 1. During late September 2006, the JV's previous exploratory hole HD03 located on Target Area 2 of the Herakleion prospect was deepened by wedging off below 612.35 m depth and continuing to diamond drill vertically. However, the extended fully cored hole, HD03a, was terminated at 771.0 m depth without having reached basement. No source for the targeted gravity anomaly was found, so it was attributed to the presence of dense rocks at deeper levels. The best assay result from drill core sampling in HD03a was 183 ppm Ce and 4 ppb Au from the depth interval 650-660 m. Density measurements made on drill core rock samples from HD04 and HD03 (including daughter holes) gave SG values averaging between 2.67 to 2.78, with the exception of a 356.4 m thick interval (186.8-540.4 m) of volcanic rocks in HD04 which averaged 2.94 SG. However, even this denser interval was not considered to provide enough mass to account for the Target Area 1 gravity anomaly. It was postulated that igneous rocks occurring below an inferred nearby volcanic vent might perhaps comprise sufficient material of this density to account for the gravity anomaly. During 2007-2008, activity in the base metals search on EL 3250 was shifted onto defining the Santorini IOCG prospect, a smaller and probably deeper-seated gravity feature mapped in two parts that straddle a major fault. Plans were made to drill an 850 m deep diamond core hole to test the prospect, but the work was postponed due to logistical problems with organising a water supply. In the meantime, Hugh Rutter remodelled the gravity data for the area and interpreted the top of dense basement rocks at the main gravity high as occurring ~500 m below the surface. Historical exploration data obtained in the WARRINA mapsheet area was reviewed, particularly drillhole data, to assess the prospectivity for secondary uranium mineralisation to form in the cover sediments deposited near the Margaret Inlier uplifted basement. Records from rotary mud hole W1 drilled by Mines Administration Pty Ltd in 1978 were of interest, as the wireline gamma ray log indicated that an anomaly of about 60 counts per second (around 3 times background) occurs at 55 m depth, associated with a limonitic (oxidised) sand band in otherwise un-oxidised Permian sediments. This minor local evidence of actual redox front accumulation of uranium in weathered porous Permian strata was considered encouraging. Accordingly, during August 2007, the northern portion of the subject licence area was overflown with 1158.5 line km of airborne EM and magnetic coverage (25 Hz TEMPEST) as part of a larger, 2437.3 line km survey carried out on 4 grids spread across the JV project acreage. On Edward Creek, east-west lines spaced 100 m apart were flown using a mean sensor elevation of 120 m above the ground. The AEM data was acquired in part to profile potential kimberlite magnetic anomalies WK20 and WK57-WK59. When the AEM data were processed and inspected, seven EM anomalies (WK64-WK70) that might be caused by intrusive kimberlitic rocks, or the weathered upper sections of such rocks, were interpreted. Surface sediment samples were collected from four of these new diamond targets and were submitted for DIM examination. Interpretation of the AEM data for signs of possible sedimentary uranium host environments did not identify conductive features consistent with paleochannels or redox boundaries.