During 2000-2001, the first year of renewed Kalkaroo EL 2720, joint venture operator Mount Isa Mines (MIM) continued with its geochemical and geophysical exploration of the Proterozoic basement which is concealed under 60-100 m depth of cover across most of the licence area. A large amount of existing drillhole information about the local stratigraphy, (meta)sedimentary petrology, alteration and mineralisation was also reviewed and synthesised to help guide the selection of future drill targets. Initially, an in-house regional gravity and magnetic data interpretation was completed, as well as the interpretation of MIM's proprietary MIMDAS (combined MT and dipole-dipole IP) 1999 survey electrical and electromagnetic data. Then an orientation soil sampling survey was performed over the eastern part of the licence area, with 1425 soil samples collected from 285 sites for geochemical analysis using five different partial extraction methods: total digestion, bulk cyanide leach (BLEG), mobile metal ions (MMI), deep leach, and enzyme leach. Because of what in hindsight appeared to be insufficient sampling density, the results of this orientation exercise did not resolve the area of known Kalkaroo Cu-Au mineralisation, but did disclose two discrete elevated multi-element anomalous zones in areas where previous shallow drilling had not found any significant mineralisation. Late in 2000, an MIM-sponsored student research project was completed, and is separately reported in: - Dawson, M.W., 2000. "The geology of the Kalkaroo area, Olary Domain, SA". B.Sc. (Hons) Thesis, University of New England, Armidale, NSW. 200 pages, 96 fig, 2 plans. During February-March 2001, MIM conducted a second MIMDAS survey of 32.6 line km along 9 traverses crossing the ENE-trending Kalkaroo-Homestead prospects domal trend and the Sampson South prospect. During the second year of EL 2720, MIM continued to collect MIMDAS survey data over various magnetically and/or geochemically defined prospects, recording a total of 58.4 line km between November 2001 and April 2002, with most coverage concentrating on known mineralised areas to help delineate possible stratigraphically continuous lodes. The data from the 2001 MIMDAS survey was interpreted. A trial soil geochemical survey was carried out at Kalkaroo prospect, entailing collection of 681 samples along four traverses for assaying of four separate soil particle size fractions using the Deep Leach 11 and Deep Leach 35 partial extraction methods, plus total digestion assaying of lag portions. In addition, detailed soil sampling was undertaken on a 50 m x 200 m grid at Brooks Dam prospect, and on a 50 m x 50 m grid at nearby Ironstone Dam, from which 340 minus 60 mesh soil samples were sent for assaying by Deep Leach 11, and 333 lag portion (plus 2 mm particle size) samples were sent for assaying by aqua regia digest. Subsequent interpretation of the assay results concluded that no particular geochemical extraction technique was clearly effective at detecting dispersions within such a thickly covered basement environment, but arguably the Deep Leach 11 method had revealed some low order anomalism in molybdenum, and secondarily in thallium, which roughly correlated with the Kalkaroo mineralised basement footprint. Between June and September 2001, 5 inclined aircore holes all having diamond cored tails were completed at selected sites on Kalkaroo prospect lying along different MIMDAS survey lines, to investigate interpreted stratigraphically controlled replacement style sulphide mineralisation that was thought to have some fracture control aspects which might locally have increased the copper grades. A total of 2786.4 m was drilled, including 2174.1 m of NQ coring. Afterwards, from 5-22/9/2001, Crone Geophysics conducted downhole 3D Pulse EM surveys in four of the completed drillholes (nos 1-4). Only mainly dispersive, thin stratabound vein style copper sulphide mineralisation was encountered within the target metapelites in holes KMD001, KMD002 and KMD003, and its average grade did not exceed 0.5% Cu. However, KMD001 intersected significantly wide carbonate-quartz +/- chalcopyrite +/- magnetite veins within the footwall albitite sequence, where assays from the cored downhole interval 316-633.4 m (317.4 m long) averaged 0.26% Cu and 0.07 g/t Au. This included 5.8 m @ 1.3% Cu. KMD004 and KMD005 were drilled within the footwall albitites, but did not encounter any significant mineralisation. Evidence of hydrothermal activity is present in the form of thin quartz-carbonate-fluorite veins. The downhole EM surveys did not reveal any evidence of conductive mineralisation near the holes surveyed, except perhaps in the vicinity of KMD002. The Kalkaroo and Homestead prospects are spatially coincident with a zone of high aeromagnetic response, which forms part of a discrete ENE-trending magnetic anomaly that is discernible on the OLARY mapsheet area regional magnetic image. This ENE-trending magnetic feature stands out as an obvious anomaly in relation to the surrounding magnetic response. Deep diamond drilling at Kalkaroo and Homestead has intersected rocks that are variably magnetite-bearing, which have magnetite contents that appear to be adequate to explain the magnetic responses in the aeromagnetic data. Prior to the drilling of diamond hole KND009 by Newcrest, magnetic susceptibility measurements obtained from outcrops and drill cores were a useful way of defining the boundary of the footwall albitites (in addition to mapping/logging primary sedimentary features or alteration). The pelites of the Strathearn Group and the majority of the carbonate replacement horizon (Bimba Formation?) have little or no magnetic susceptibility. There is a marked jump at the boundary due to disseminated magnetite in the footwall albitites (pervasive alteration). The albitites do have zones of low susceptibility, especially where albitisation is more intense and is sometimes associated with trace haematite-chlorite alteration. Hole KND009 showed that there can be cross-cutting carbonate-quartz-magnetite veins. Of these types of vein that were intersected below 360 m in KMD001, only one contained sufficient magnetite to give a high magnetic susceptibility response. Work done during the third year of EL 2720 comprised a further interpretation of MIM's recent MIMDAS survey data, for lines read during early 2002; the collection during April-May 2002, over four as yet untested prospects or prospect subareas, of 432 x minus 60 mesh soil samples taken at 50 m intervals along 9 of the MIMDAS lines, for analysis of six selected pathfinder elements by Deep Leach 11 partial extraction; and then the drilling during May-June 2002 of 8 inclined RC percussion–diamond tailed holes for a total penetration of 1775.7 m at selected IP and/or airborne EM anomaly sites on the said four prospects. Statistical analysis of the soil geochemical results yielded no anomalies of note. The drilling was also disappointing, finding nil to trace only copper mineralisation as indicated by chargeability or conductivity anomalies, but instead minor pyrite or pyrrhotite bands or masses within the pelites, and no sulphides at all within the footwall albitites. The conclusion drawn by MIM was that the various prospect drill targeting criteria which it had utilised to date had been largely ineffectual in successfully extrapolating the replacement stratabound mineralisation model away from the fault-associated supergene Cu-Au occurrence at Kalkaroo prospect. In view of this, the company decided to return management of the exploration programme to Placer Dome Asia-Pacific after February 2003.