An area centred ~160 km south-east of Oodnadatta has been explored for possible buried economic IOCGU type mineralisation hosted by haematitic volcanic breccias that may have formed within Proterozoic basement rocks. EL 4959 was the most easterly licence of the Oodnadatta Project tenement group, being located adjacent to the western shore of Lake Eyre North. During the first licence year, no field work was done. Office based activities comprised a review of past exploration records, data compilation, and a consultant's reprocessing and interpretation of available geophysical datasets to assist with targeting. It was decided to investigate the large, 6 km x 12 km Waterhouse residual gravity anomaly through the acquisition of additional ground gravity data and performing additional geophysical modelling, with a view to undertaking diamond drilling to find the source of the anomaly. The Waterhouse anomaly is located just south of the basement high of the up-thrusted northern Peake and Denison Ranges, and consists of discrete coincident magnetic and gravity anomalies that lie across or at the termination of a major north-northwest trending regional fault structure. At this stage the depth to the top of magnetic basement is believed to be between 500 m and 1 km, but the depth to the dense body cannot be determined using 3D inversion models because of a lack of close-spaced gravity data. It was stated that there is a strong possibility of the magnetic response being caused by mafic rocks containing up to 20% magnetite, due to the observed occurrence within it of pronounced magnetic remanence. Subsequently no further work was done. An application to renew tenure for a third year was received on 30/5/2014, but this application was later withdrawn on 16/6/2014, close to the end of licence Year 2.