A small area centred ~33 km north-west of Cockburn and ~26 km south-southeast of the Honeymoon deposit has been explored for possible buried, calcrete hosted secondary uranium deposits that may have formed in Quaternary valley fill sediments, and also for sandstone hosted roll-front type secondary uranium deposits which could occur in older Tertiary palaeochannel sediments. Existing maps indicated the presence of at least four palaeochannels crossing the tenement from the SW to the NE. Iron oxide - bearing breccia and diatreme copper-gold-uranium-REE (IOCGU) deposits and shear-hosted gold-copper deposits were also considered to be important deeper targets that might lie along linear basement features. The Mundaerno South area has limited bedrock exposures, and scant past drilling. Basement locally was thought to consist of deformed and metamorphosed granitic and pegmatitic units of Mesoproterozoic age. During the initial year, the licensee reviewed historic exploration records, compiled regional open file basic datasets and studied regional gravity, magnetic and radiometric data to identify drill targets. The regional airborne magnetic and radiometric data for the Mulyungarie 1:100,000 map sheet area were acquired and analysed using Vector Research Pty Ltd’s proprietary TargetMap software image analysis system, which it was claimed can resolve detail lost in conventional image processing, and has the capacity to more precisely map out subtle textural variations, linear and curvilinear features and spot anomalies. Of note in the system output provided was a 4 km long, NNE trending linear total count radiometric anomaly extending through the Bundera Well area in the east of the licence. A number of spot magnetic highs were discerned to lie along a central north-east trending corridor in the middle of the licence; none of these had been tested by previous explorers. During licence Year 2, a data review was completed, exploration composite maps were prepared, and drill targets were identified in both the cover and bedrock sequences, taking the form of several discrete narrow palaeochannels and numerous spot magnetic anomalies with sources expected to lie within the basement. A reconnaissance aircore bedrock drilling programme of 45 vertical holes was proposed to test these features. As the Year 2 annual report was being written in early October 2009, the prospectivity of the licence area became boosted by news of a palaeochannel-hosted uranium find that was made some 15 km away to the north-east [by Marmota Energy at Junction Dam on EL 3328 - see Env 11174]. During licence Year 3, negotiations with an incoming joint venture partner were completed, approval for the work programme was obtained from PIRSA, and land access negotiations were completed. During licence Year 4, the JV partners undertook a first pass drilling programme in May 2011 which consisted of 14 vertical RC aircore open holes put in at around 500 m apart along several very widely spaced traverses, that were designed to test a number of palaeochannel and geophysical targets. The aggregate penetration was 1138.3 m, down to blade refusal, and the maximum hole depth achieved was 124 m. A total of 1152 drill cuttings samples were taken at 1-metre depth intervals and assayed for a suite of 36 trace and major elements, returning significant anomalies for uranium (to 153 ppm U3O8), vanadium (to 6122 ppm V2O5) and iron (to 32.7% Fe2O3) as well as elevated copper and gold values. The host rocks were respectively basal regolith sedimentary units and highly ferruginous saprock horizons. Drillholes MAC12, -13, -14 that were sited to test an interpreted extension of the Yarramba Palaeochannel gave the best results - all three passed through sand, silt and clay beds of the cover sequence, including a basal sandy unit, into a weathered mica schist basement which in MAC12 yielded the peak uranium value from within a 15 m thick zone of high iron content. This zone was also enriched in many other trace metals, suggesting the passage of mineralised hydrothermal solutions. The zone appeared to continue for ~1 km distance northwards across to MAC13 and MAC14: hole MAC13 recorded a peak vanadium intercept of 4320 ppm V2O5 from 34 to 37 m depth, right at the bedrock-cover interface. Holes MAC09, MAC08 and MAC11 which were drilled elsewhere, to test three magnetic anomalies in the south-west of the licence at Boolcoomata East, encountered relatively iron-rich (7% to 10% Fe2O3) haematite weathered, quartz veined biotite schist carrying up to 165 ppm Cu plus lesser amounts of cobalt and tungsten and minor elevated vanadium, phosphorus, barium, lanthanum and uranium. During licence Year 5, rehabilitation of drill sites was performed whilst the company evaluated the drilling data and planned an infill follow-up drilling campaign. Because only 14 of the originally intended 76 holes had been completed due to the onset of heavy rainfall and time limitations with gaining work site clearance access, the remainder of the drilling still needed doing. The likely cost of undertaking it, beyond the high costs of obtaining Aboriginal cultural heritage protection clearances, necessitated an active search for a joint venture partner who would fund this Phase 2 of exploration. An application for renewal of the subject licence for a second 5-year term was lodged with DMITRE. No joint venture arrangement could be made over the following two years, and no field work was done, although the stated intent was to acquire detailed ground gravity and ground EM surveys to help delineate buried palaeochannels, besides resuming exploratory drilling at closer hole spacings. At the end of licence Year 7 tenure was allowed to lapse.