A large area centred on the Wilkawillina Gorge of Ten Mile Creek, in the central Flinders Ranges near Oraparinna, is being explored for possible buried economic zinc silicate (willemite) epigenetic or replacement mineralisation of Beltana type, as well as for any stratabound MVT mineralisation. Original syngenetic base metals associated with lithologies of Cambrian marine self carbonate environments are believed to have become remobilised during the Delamerian Orogeny, when diapirism and metasomatism were active, which resulted in them becoming more concentrated and localised into particular stratigraphic and structural settings. During the first licence year, attention was focussed on evaluating the existing Third Plain prospect in the west of the tenement, where willemite is known to outcrop. Perilya conducted orientation and prospect-scale grid based surface geochemical sampling to try to define the extent of the mineral occurrence, and possibly to detect any nearby previously unrecognised base metal geochemical anomalies. The orientation work identified the minus 2 mm to plus 20 mesh soil/sediment particle size fraction as the most appropriate size fraction to use to outline base metal anomalism in this part of the Flinders Ranges regolith terrain. Subsequent soil and stream sediment sampling undertaken on a 100 m x 50 m grid spacing (317 and 42 samples respectively) revealed prominent zinc anomalism over the willemite occurrence, returning >1000 ppm Zn from a 700 m x 100 m area, plus notable accompanying vanadium in the soil samples. In addition, 700 m further to the south adjacent to a major north-east striking fault and outcrops of manganiferous ironstone, another strong zinc soil anomaly peaking at 3860 ppm Zn was disclosed. Perilya compiled a regional prospect database by reviewing open file reports, and also compiled a regional stream sediment database to use to identify other geochemical targets. AGSO airborne geophysical data were acquired, processed and interpreted, and Landsat images were acquired to study for any signs of surface alteration of the Cambrian bedrock which might represent new prospects. During licence Year 2, activities comprised: - geological mapping undertaken at 1:5000 and 1:500 scale at both the Third Plain and Linda prospects; - rock chip geochemical sampling - 17 samples were collected at Third Plain, and 17 at Linda; - infill soil geochemical sampling at Third Plain, performed over a 25 m x 25 m grid (191 samples); - acquiring a microgravity survey across the main geochemical anomaly at Third Plain. 566 stations were read at 20 m intervals along lines 40 m apart. The gravity data revealed several density anomalies, plus probable areas of dolomitisation in the Wilkawillina Limestone. Early in the reporting year, it was realised that a mining lease was current over the part of the licence which covered the main area of interest at Third Plain. Several days were spent finding and GPS locating all of the ML corner pegs in the area, and searching to identify which of the pegs were current. It was established that Normandy Gold Ltd owned the active mining lease, ML 4386; however, after suitable negotiations were made Minotaur and Perilya were able to secure the ground position. The previously explored main area of willemite mineralisation at Third Plain was confirmed by reconnaissance geological mapping to be a fault-hosted deposit with a north-south strike, and a vertical to steep eastwards dip. This area in Perilya's opinion had not been adequately drill tested, particularly on its northern end where the company's recent soil and outcrop channel sampling had returned strong zinc anomalies with associated lead, vanadium, arsenic and cadmium enrichment. At Linda prospect, reconnaissance mapping outlined large zones of dolomitisation and haematitic alteration in the Cambrian limestone, and a 110° trend to mineralisation and structure was recognised with fractures that are filled with clast supported fine breccias, in places containing small pods of hydrozincite after sphalerite. Evidence of dissolution of the mineralised clasts and fracture walls was regarded as signifying that the breccias are hydrothermal, and likely to form part of a MVT mineralising system. During licence Year 3, in March-April 2002, Perilya conducted detailed, 1:2500 scale mapping at the Third Plain prospect to verify the existing 1:500 scale map data from ML 4386 and to assist in locating drilling targets. Infill soil geochemical sampling was done on a 100 m x 50 m spacing over the southern gossan (65 samples taken), while 7 rock chip samples were taken from the southern smithsonite zone and sand karst, as well as at the periphery of the karst identified at the southern anomaly, approximately 1 km south of the main prospect. This work provided Perilya with new insights about the prospect's geology and mineralisation, which were summarised in an internal report prepared in August 2002. This report states that in the company's view, Third Plain is a hypogene, structurally controlled willemite-smithsonite deposit. The orebody crops out on the footwall structure juxtaposing Woodendinna Dolomite - Wilkawillina Limestone, where it is cross cut by the Third Plain Fault. An 800 m wide haematite-zincian dolomite alteration halo surrounds the deposit, and dolomitised Wilkawillina Limestone occurs for over 2.5 km along strike. Karsting occurs in the hanging wall, which is filled with barren Jurassic sandstone. Supergene processes have remobilised zinc, replacing and coating ore with secondary smithsonite. The southern gossan is located on the Southern Fault. Patchy haematite and manganese alteration occurs adjacent to the fault. On the southern side of the fault, a karstic depression is located on the Wilkawillina Limestone contact, evident from a large depression in the surface and a coincident gravity low. It is rimmed with intense manganese alteration and minor specular and red haematite alteration. A significant gravity low is coincident with the karst. It was thought that this area has moderate potential to host a significant, >1 Mt deposit, so plans were made to conduct an RC drilling programme of ~1300 m total penetration in January 2003. Previous drilling by Kennecott Explorations had defined a resource of 45,800 t @ 25.6% Zn to 50 m below surface, and had yielded a best intercept of 15 m @ 38.1% Zn. The proposed RC drilling would also evaluate exploration targets adjacent to the main deposit, which remains open to the north-east and at depth.