EL 3413, surrounding the township of Weetulta on the Yorke Peninsula, is located geologically along the prospective south-eastern margin of the Gawler Craton. The licence area, which lies only about 10 km south of Moonta, has several historic mines within it and has been subject to a significant amount of regional mineral exploration. Within the district, outcrop of the target Proterozoic basement is rare (<10%). An almost complete cover of regolith strata consisting of residual soils, aeolian dune sands (<5 m thick), Tertiary-Quaternary sediments or Cambrian and Adelaidean sediments constituting a sequence that ranges from 1 to 100 m thick, blankets the tenement. The underlying Proterozoic crystalline bedrock comprises 1740-1760 Ma Palaeoproterozoic volcanosedimentary rocks that are intruded by numerous highly prospective 1590 Ma Hiltaba Suite granite bodies. Regionally pervasive metamorphic alteration to the basement rocks includes the products of an an early sodic/calcic/magnetite metasomatic event (forming magnetite, actinolite, clinopyroxene, scapolite, apatite, epidote, albite, K-feldspar) and late stage sulphide mineral generation that is associated with a biotite, quartz, feldspar, chlorite, and tourmaline alteration assemblage. The project target is a new style of copper-nickel-cobalt-rare earth elements mineralisation. A review that Red Metal conducted on past exploration records has found that some of the historic drillholes had intersected narrow intervals of elevated copper-nickel-cobalt-rare earth element geochemistry, which were detected within sulphide-rich zones that have formed in highly altered metasedimentary sequences. Soil calcrete sampling conducted by Red Metal during June 2005 (from which 124 samples were assayed in licence Year 1) identified an extensive area of elevated cobalt and cerium lying above a regionally significant linear, west-northwest trending low magnetic intensity feature. Red Metal’s experience in the district recently has shown that areas of elevated soil trace metal geochemistry that are coincident with low magnetic intensity and/or negative gravity anomalies can result from deep weathering processes that have occurred above buried sulphide mineralisation. A programme of aircore drilling into Proterozoic bedrock, totalling 103 vertical holes along nine traverses for an aggregate penetration of 1740 m, was completed by Red Metal during February 2007 to test the WNW trending demagnetised structure with high Ce and Co calcrete geochemistry. No obvious mineralised source to the demagnetised zone was detected. The best copper assay results for 3-metre composite drill cuttings samples were 677 ppm Cu in hole MTAC100 and 350 ppm Cu in hole MTAC35. Elevated rare earth element values (for Ce, La) were noted as accompanying the copper anomalism. A possible focussing mechanism for economic mineralisation could not be discerned from the work conducted to date. During licence Years 3 and 4, no field work took place on EL 3413 while the licensee performed a review of its geochemical and geophysical data.