An area comprising three adjacent but separate sub-blocks in the Mount Davies district of the central Musgrave Ranges within South Australia was taken up afresh by the Metals X Group, through its wholly owned subsidiary Austral Nickel Pty Ltd, because it is considered to have very high potential for the discovery of lateritic nickel deposits, copper-nickel sulphide deposits, and deposits of platinum group elements. The Wingellina nickel oxide deposit lies immediately to the west of EL 3555 in Western Australia. The subject tenement ground is interfingered with the concurrent Delta Gold - Rio Tinto Exploration - PepinNini Minerals JV's EL 3932 Mount Davies. Metals X also holds three contiguous granted explorations licences lying immediately over the border in Western Australia, through its wholly owned subsidiary Hinckley Range Pty Ltd. The country on both sides of the border has some common Aboriginal Traditional Owners. Exploration licence 3555 was granted following the execution of a “Deed of Exploration” between Anangu Pitjantjatjara Yankunytjatjara (APY) and Austral Nickel Pty Ltd dated 18/5/2006. The same tenement area was previously held by Austral Nickel Pty Ltd under EL 2777 [see Env 9831]. However, APY refused to allow the continuance of that tenement or its replacement under the existing Deed of Exploration, and so a new Deed agreement had to be entered into and then a new tenement issued (EL 3555). During the first licence year, the licensee's field work consisted of conducting Aboriginal heritage clearance surveys, performing RAB drilling to sample buried bedrock and/or soil calcrete horizons, and acquiring a ground electromagnetic (EM) survey, which was only partially completed during the year. There were considerable delays in starting the exploration programme which resulted from delays in obtaining work clearances. The RAB drilling tested bedrock strata for their geochemistry in three separate areas, via 178 holes for a total penetration of 2550 m (CHRB0001 – CHRB0178). The ground EM survey comprised a moving-loop SQUID configuration using a 200 m x 200 m loop with readings taken at 100 m spacing along north-south profiles 200 m apart. Starting in November 2006, 206 stations (42% of the planned coverage) were read along 18 profiles, partly covering an inferred Giles Complex feeder system in Area 1 on EL 3555. During licence Year 2, field work included the conduct of aboriginal heritage protection clearance surveys, geological mapping, surface geochemical sampling, two campaigns of RC drilling, and the completion of a ground electromagnetic survey which was only partly completed during the 2006-2007 reporting year. The MLEM coverage was completed in August 2007, for a total of 494 stations. Disappointingly, no valid targets were revealed beneath the cover, although a useful signal return was obtained from down to ~150 m depth. The RC drilling was done in target Areas 2 and 3, for a total of 26 holes having a combined penetration of 730 m (CHRC0007 – CHRC0032). The Area 2 work was designed to test for extensions into SA of the Wingellina laterite nickel oxide deposit located in Western Australia, just across from the state border. Calcrete was logged at the top of most of the 11 holes. This then graded into ferruginous and mottled clays, with siliceous material also present in many instances. Drilling was typically terminated in either basement gneiss or gabbro, with the exception of hole CHRC0013 which was terminated in undifferentiated ultramafic rocks. No significant nickel anomalism was encountered. The Area 3 drilling was designed to re-appraise possible extensions of the Claude Hills nickel laterite deposit towards the east. 15 holes spaced 50 m apart were put in along three traverses. Calcrete was logged at the top of most of the holes, grading to mottled and smectitic clays where there is no significant mineralisation. Where mineralisation exists, the clays are typically of limonitic or of the Fe/Mn-Co-Fe type. Drilling was typically terminated in either gabbro or pyroxenite. It encountered significant mineralisation in the following holes: - 58 m @ 1.23% Ni in hole CHRC0030 from 12 m, which intersected limonitic clays and, toward the bottom of the hole, smectitic clays. - 16 m @ 0.56% Ni in hole CHRC0031 from 32 m, which intersected ferruginous clays, Mn-Co-Fe clays and also limonitic clays. - 10 m @ 0.80% Ni in hole CHRC0032 from 24 m, which intersected limonitic clays and ferruginous silcrete. Soil bulk sampling (298 samples), LAG sampling (122 samples) and pH testing (150 metered probe tests) were performed over many geophysical anomalies and to follow up bedrock geochemical anomalism identified by earlier RAB drilling. However, the results were largely inconclusive, possibly due to the deep cover, although the pH testing seemed to work effectively delineating geological boundaries. It was concluded that local unusually high levels of titanium (up to 20% Ti in outcropping dykes of the Amata Suite) may have masked much of the LAG geochemistry. During licence Year 3, field work included the conduct of heritage clearance surveys, geological mapping, RC drilling over 3 areas, diamond drilling in 1 area and limited metallurgical testing. The drilling tested for extensions to known nickeliferous laterites at Claude Hills, nickel sulphide and PGE potential in the Claude Hills differentiated mafic sequence, and calcretes in the Pipalyatjara airstrip area. Geological mapping of the Pipalyatjara Calcrete area and the Claude Hills in Area 3 was completed using aerial photography and hand-held GPS for location. The RC drilling was done in target Area 3, Wedge Area, and the Pipalyatjara Calcretes, for a total of 165 holes for a total length of 11,032 m (CHRC0034 – CHRC0198), 5 drill chip samples underwent petrological examination. The Area 3 drilling was aimed at potentially adding resources to the Wingellina Nickle Laterite resource, with 115 holes for 1431.5 m drilled along 11 drill traverses on a 50 m hole spacing. Of the 115 holes, 10 were funded under the PACE drilling initiative (DPY5-16) [see report ENV11932 CNO:2028847]. Drilling intersected a broad zone of ultramafic rocks, consisting mainly of pyroxenites with subordinate dunite and peridotite and minor melanocratic gabbro, overlain by a variably developed and partially stripped lateritic profile. Assays show that the laterite profile contains high levels of nickel, and that coherent deposits of potentially economic nickeliferous laterite can be traced through the zone. The Wedge Area lies ~2 km west-southwest of Area 3 and lies along strike of the nickeliferous laterites identified on the southern edge of the Claude Hills. A total of 26 holes for 1510 m were drilled in the area which intersected dunites, whose overlying lateritic profiles contain elevated nickel and forms a continuation of the previously discovered zone to the east-northeast. Drilling is not of a sufficient detail to properly assess the area but has the potential to host an economic nickel laterite resource. The Pipalyatjara Calcretes Area represents an area where calcrete deposits within a palaeodrainage channel are currently being used as a road base, the material has a high carbonate content and appears suitable for acid neutralisation in an HPAL processing plant and has the potential to supply the Wingellina Nickel Oxide Project. A total of 24 holes for 540 m were drilled. Diamond drilling of 12 HQ cored holes for 143.5 m (CHDD0001 – CHDD0012) was undertaken within the Pipalyatjara calcrete channel twining the previous RC holes to test the quality of the calcrete (metallurgy reports included in report). During licence Year 4, field work included heritage clearance surveys, drill site rehabilitation, water sampling and seismic surveys. The grading of 35 km of access tracks in the Claude Hills was also undertaken along with the re-logging of all Austral’s RC drilled in the Claude Hills area. Eight lines of low-impact hammer seismic survey was completed in the Claude Hills over the drill profiles in Area 8 to assess the effectiveness in locating zones of deep weathering and possible nickeliferous development. However due to the presence of loose sand in the area, interpretation of the results difficult and no data has been submitted. Water samples were collected from 19 cases drillholes within the Pipalyatjara calcrete zone and across the Claude Hills as part of a long-term monitoring programme of the standing water table. During licence Year 5, field work included heritage clearance surveys, RC drilling of the calcrete zone, testing for subterranean fauna within the Pipalyatjara calcrete zone and the Claude Hills laterite zone, rock chip sampling, the completion of drill site rehabilitation and groundwater sampling. The Pipalyatjara calcrete was tested further with the drilling of 46 RC holes for 582 m (CHRC0199 – CHRC0244) to test the continuity of the calcrete deposit further to the west. Thirteen rock chip samples were collected from outcrops of the Teizi Anorthosite suite to test their geochemical signature, and to test for the presence of titanium minerals. Results were generally disappointing, although one magnetite-rich sample assayed 9.63% TiO2. A total of 47 water samples were collected from 17 drill holes in the Pipalyatjara calcrete zone and the Claude Hills area, as part of a long-term monitoring programme of the standing water table. A combined ore resource calculation was carried out in-house for the nickeliferous laterite deposits on EL 3555 and EL 3932 (Austral holds a Farm-In and Joint Venture Agreement with Rio Tinto Exploration Pty Ltd to explore EL 3932 which forms an internal “keyhole” to EL 3555) in the Claude Hills area. A sectional model was compiled for wireframing and block modelling. A nominal 0.5% Ni lower cut-off was used to compile the model, and a global density of 1.28 tonnes/m3 was applied to determine tonnages. Grade was calculated using the inverse distance squared algorithm. The reportable portion of the inverse distance squared resource figure for the Claude Hills is 33,277,475t at 0.81% Ni, 0.07% Co and 39% Fe2O3, for a contained 269,654t Ni and 22,674t Co, above a lower cut-off 0.5% Ni. Subterranean fauna sampling was undertaken from drillholes across the tenement, testing for the presence of stygofauna and troglofauna, between September 2010 and March 2011. Laboratory testing was still underway at the time of reporting, but early results suggest that the subterranean fauna is not found in the area. During license Year 6, field work on renewed EL 4751 included the flying of an airborne EM (SPECTREM) survey over much of the tenement and continuing heritage clearance surveys, drill site rehabilitation and groundwater sampling of 25 piezometer holes. Delays with heritage survey clearances and withdrawals of permissions impacted exploration programs during the reporting period. Drilling proposals submitted in July 2011 had still not been considered by June 2012, while areas previously cleared and on which drilling had previously been undertaken had exploration permissions withdrawn. The company believe this is due to a disagreement between the APY and the local people, rather than dissatisfaction with the company. A SPECTREM airborne EM survey was flown between 26/12/11 to 16/2/2012 over the Giles Formation rocks within EL 4751, with a total of 3440 line-km flown along 200 profiles. Flight lines were orientated north-south 250 m apart. Data recorded include electromagnetic data, magnetic response, 4-channel spectrometer data and digital terrain model. Thirteen anomalous zones were identified for further investigation. During licence Year 7, filed work included continuing heritage clearance surveys, a ground EM survey and the drilling and pump testing of a water bore near Nyikukura. Clearance surveys were carried out across 3 of the 13 EM targets identified in the previous reporting period, 2 were approved for access. Clearance for RC drill sites and a water bore were also undertaken. Interpretation of the SPECTREM EM data from the previous reporting period was completed by Core Geophysics and Southern Geoscience and identified several additional low-order anomalies. Outer Rim Exploration were commissioned to carry out a ground EM survey over the 2 areas cleared for access, 121 stations were read on a nominal 50 m x 150 m spacing using a SMARTem24 fixed-loop TEM system along 11 lines for a total 7.8 line-km, between 29/5 – 4/6/2013. Groundwater investigations were carried out by Rockwater Pty Ltd; 2 boreholes were completed for monitoring and production and a detailed report is included. During licence Year 8, field work included heritage clearance, soil sampling surveys, diamond drilling and metallurgical work. Soil sampling was undertaken over an EM target identified in the ground EM survey completed in the previous reporting period, south of Pipalyatjara. A total of 57 soil samples were collected on a 100 m x 100 m grid spacing and sieved to -80 mesh and submitted for a 33-element suite geochemical analysis. The drilling of 2 inclined NQ cored diamond holes for 608.85 m (CHDD0013 – CHDD0014) to test the Ilitjata EM anomalies was undertaken immediately north of the soil survey. Hole CHDD0013 was drilled to test EM anomaly MTD1-2, and the presence of graphite and semi-massive sulphides down hole were considered sufficient to explain the EM anomaly. While a thin graphitic layer at 182 m and disseminated to semi-massive sulphides throughout the drillhole were sufficient to explain EM anomaly MTD2 tested by drillhole CHDD0014. Calcrete grab samples from the Pipalyatjara calcrete area were collected for physical metallurgical test work. The physical properties of the samples were within acceptable limits, but the grade of the selected samples was not. The deposits are still considered suitable for use in the proposed Wingellina Nickel Laterite Project. During licence Year 9, field work included heritage clearance surveys, RC drilling, groundwater sampling and further drill site rehabilitation. Access approval was granted for RC drilling in the Scarface area except for the eastern most profiles, while access to further drill the Pipalyatjara Calcrete was impossible to obtain due to the passing of the main traditional owner’s father. Internal governance problems in the APY have stalled attempts to discuss further clearance programs. Groundwater sampling and monitoring continued, with samples taken from 28 exploration drillholes across the tenement. The drilling of 8 RC holes (CHRC0245 – CHRC0252) for 320 m to test the Scarface laterite zone north-east of Pipalyatjara was completed during the reporting period. Austral reported the results of laboratory testing were disappointing, with no nickeliferous material being detected. During licence Year 10, field work was restricted to drill site rehabilitation and continuous contact with the local aboriginal people. In the 2014-2015 reporting period, drillhole CHDD0013 was wireline logged by Endeavour Geophysics as part of the collaborative DSD-University of Adelaide wireline logging and petrophysical analysis project funded by AuScope through their Australian Geophysical Observing System (AGOS) programme. Further to this, Austral supplied 30 pieces of diamond core from hole CHDD0013 to Alex Musson from the University of Adelaide’s SA Centre for Geothermal Research. Permission was granted to the DSD to publish the data collected during the study [See report book RB 2018/00021 CNO:2042849]. During licence Year 11, on renewed EL 5860, no field work was undertaken for the year ending 19 June 2017 as a consequence of the continued depressed state of the nickel market. Contact is being maintained with the local aboriginal people in Pipalyatjara and Kalka communities through the Company’s continued presence at its exploration base camp at Wingellina.