Phoenix Copper is exploring tenements which cover an area of approximately 802 square km on the west coast of the Yorke Peninsula, the company's prime objective being to discover an economic iron oxide - associated copper-gold-uranium (IOCGU) deposit in the southern Olympic Domain. Despite much of the ground being located less than 30 km from the Hillside deposit, and containing Hiltaba Suite basement rocks having known areas of metasomatic alteration disrupted by deep seated faults, it has hitherto remained almost unexplored. In this promising geological environment, Phoenix decided to use airborne electromagnetic (EM) surveying as a primary detection tool to map, to depths of up to 150 m, possible massive sulphides associated with inferred buried geological structures targeted from regional magnetic data. The relatively new, Geotech Airborne contractor's helicopter-mounted Versatile Time-Domain Electromagnetic (VTEM) geophysical data acquisition system, which is one of the best airborne EM platforms available, featuring high transmitter power and low noise levels highly suited to exploration for highly conductive massive sulphide mineralisation, was selected as the survey method. Airborne VTEM and magnetic data were acquired during March 2011 at flight line spacings of 200 m. Interpretation of the airborne VTEM survey data generated 29 EM anomalies that might denote possible IOCGU targets. Phoenix applied for a grant of PACE drill subsidy funds to assist it with performing diamond drilling at 3 selected EM anomalies, citing the following programme aims: 1) to determine whether particular VTEM anomalies are associated with geological units which are interpreted to be magnetite-rich metasomatites and gabbros at Balgowan (sparsely drilled in a 1956 SADM diamond drilling campaign). Similar rocks occur at the Hillside deposit, located immediately east of Phoenix tenure, where Rex Minerals recently announced a mineable resource of 170 Mt @ 0.7% Cu and 0.2 g/t Au, containing 1.2 Mt copper and 1.1 Moz gold; 2) to determine whether VTEM anomalies are associated with structural features identified in a regional magnetic interpretation of Phoenix’s Yorke Peninsula tenements. If so, the conductive parts of these structures, which may be splays off the Pine Point Fault, could host IOCGU mineralisation similar to that found at Hillside. 3) to determine whether VTEM anomalies recorded in the south-western Yorke Peninsula are associated with circular magnetic features interpreted to be granites and porphyries. These EM anomalies could represent sulphide lodes similar to those found at Moonta and Wallaroo, from where >355,000 t of copper and 2 t of gold have been produced. Phoenix's PACE drilling proposal was accepted by DMITRE, and resulted in 6 inclined diamond holes with a total penetration of 1331.1 m being drilled during May 2012, two holes each at the three selected VTEM anomalies. This greenfields programme was technically very successful, because the disclosed combination of favourable host lithologies (Hiltaba Group and Wallaroo Group), style and intensity of alteration, and levels of sulphides intersected throughout all six holes confirmed the copper-gold prospectivity of the region and provided increased exploration confidence. The drilling highlighted that a) the rocks are altered with alkali feldspar, biotite, magnetite and chlorite being products; b) sulphide, predominantly pyrite, has been introduced, especially in the western area (drilled by holes PYD005 & PYD006); c) the Wardang Volcanics Member and the granitic and mafic representatives of the Hiltaba Suite have been deformed, thus suggesting the possibility of proximal sheared zones; and d) there is evidence of brecciation. These are all positive characteristics of IOCG style mineralization, i.e. pervasive alteration, pyritic and minor chalcopyrite mineralisation, Hiltaba Suite intrusions, and the possibility of open-spaced sheared zones and breccia bodies being nearby. Phoenix believes that broad analogies can be made between the alteration assemblage associated with strongly developed sulphides and copper mineralisation, as seen in the Moonta-Wallaroo copper-gold mines, and the alteration assemblage observed in holes PYD005 and PYD006 drilled near Port Victoria. This late stage alteration assemblage comprises chlorite-quartz-haematite-K feldspar–pyrite+/-chalcopyrite. The company considers that VTEM data has been effective in defining conductive targets, with all six PACE drillholes intercepting disseminated sulphides: however, the full qualitative assessment of these geophysical targets, now requiring to be done across the project tenements, needs to be supported with geochemical data from aircore drilling to basement, better quality gravity and magnetic data, and will need to be constrained by a good understanding of the basement geology, that is, the distribution of host lithology, penetrative structures and controls on known economic mineralisation in the region (i.e. at Hillside and Moonta-Wallaroo). Phoenix recognises that structural modelling is a key IOCG exploration targeting technique. Magnetite-altered structures, where they exist (and form sites primed for later haematisation and demagnetisation) are indicators of early-formed fluid conduits, and have the potential for the accumulation of copper mineralisation either within the primary structure, or within splays, breccia zones or in adjoining favourable host lithologies. The current ground gravity dataset over selected areas maps out the structural features, and together with the magnetic data, is a valuable detailed targeting tool. The use of historical electrical IP data would also help target accumulations of disseminated sulphides. Phoenix concludes that the information gained from the PACE DPY7-18 diamond drilling project, utilised in conjunction with data from earlier ground gravity surveys and its VTEM survey, plus the conduct of 3D magnetic modelling, will enable it to generate drill targets with the potential to host economic copper mineralisation.