A tenement area located close to and along the eastern seaboard of the Eyre Peninsula, and which extends from Whyalla southwards for approximately 60 km, has been taken up to explore for possible economic buried primary, hard rock hosted uranium and base metal mineralisation that may have formed within the extensions of the Kalinjala Mylonite Zone (KMZ) north of the Murninnie copper mine, as well as for IOCG styles of mineralisation associated with Hiltaba granite intrusions, and also for any sediment-hosted secondary uranium that may be associated with possible redox fronts that could exist within permeable Kanaka Beds of the Tertiary Pirie Basin. Topographically, the area comprises a coastal plain in the east and a tableland in the west, the two geomorphic domains being separated by a 20 to 60 m high north to north-east trending fault escarpment. The eastern coastal plain has a veneer of Recent cover known to be underlain by sediments of the Kanaka Beds of the Pirie Basin and a Hiltaba Suite felsic igneous intrusion, and the western tableland is underlain by the landward fringes of Miocene clastic sedimentary sequences that are lapped onto basement consisting of Palaeoproterozoic granitoid rocks and metasediments. During the first licence year, in late February 2007, licensee parent / licence operator UraniumSA completed part of a multi-licence airborne magnetic / radiometric / DTM survey to help it identify areas of immediate exploration potential. 1144 line km of detailed aerial geophysical coverage were acquired along east-west flight lines spaced 200 m apart, using a 50 m sensor height above ground level. Interpretation of the new aeromagnetic data provided some better definition of inferred buried extensions of the KMZ, allowing for selection of initial drilling targets. Reconnaissance aircore drilling commenced in May 2007, and 74 vertical holes with a total penetration of 1566 m were completed during the year. The principle aim of the drilling program was to generate lithological and geochemical data across the western tableland of uplifted basement, to provide a framework for evaluation of a newly geophysically interpreted large sigmoidal fold in the KMZ which appeared to have an associated magnetic destructive signature. All of the holes were logged on completion with a hired wireline radiometric probe, but this probe was not calibrated and its functionality was very unreliable; consequently the data acquired proved to be misleading, and ultimately, is not useable. Bottom hole 1-metre drill cuttings samples from each hole were assayed, and a number of selected drillholes were assayed throughout. This did not return any significantly anomalous results. However, it was realised that the broad spacing both of reviewed regional calcrete geochemical sampling carried out by the immediate prior tenure holder, and of USA's current aircore drilling bottomhole samples, did not adequately test the extent of the KMZ, because very few samples were located over or in the target. During licence Year 2, USA's attention shifted to assessing the untested sedimentary uranium mineralisation potential of the Kanaka Beds of the Pirie Basin, which the company thought have all of the components required for prospectivity: they are the right age (Eocene to Miocene), they have permissive lithologies (fine to coarse grained clastics and lignite), and they lie proximal to a potentially uranium rich source (Hiltaba Suite granite). A rotary mud exploratory drilling program commenced in November 2007, and 41 vertical holes with a total penetration of 2658 m were completed during the year. The first drillhole intersected uranium mineralisation, thus confirming the prospectivity of the Kanaka Beds, with the subsequent discovery of several discrete mineralised zones defining a new uranium province within South Australia. Regional rotary mud drilling was then continued along the coastal plain to define sedimentary depositional environments, redox fronts and basement structures. The holes were geologically logged at 2-metre depth intervals, but no sediment samples were collected for assaying. Downhole geophysical logging was performed using an in-house owned and operated wireline logging system based on Geovista equipment. Each hole was logged with a natural gamma ray sonde and one of either a single point or dual guard resistivity sonde; each of the electrical sondes also collected a spontaneous potential profile. A low level helicopter-borne REPTEM AEM survey was carried out by Geosolutions for USA over the southern and eastern portion of EL 3652 during September 2008, when 422.5 line km were flown on a variable grid spacing in order to achieve a better understanding of the basin fill and regional structures. During licence Year 3, USA undertook further rotary mud drilling, completing 80 holes for 6331 m. The drilling results were very encouraging, yielding data that led to the company first making announcement of an Inferred Mineral Resource estimate (JORC compliant) for Blackbush prospect in May 2009, and not long afterwards, in September 2009, making a discovery announcement for Plumbush prospect. The Blackbush prospect Inferred Mineral Resource estimate was stated to be 12.0 Mt at an average grade of 0.02 % eU3O8, containing 2700 t of eU3O8. The mineralisation is hosted within a laterally continuous sand package having an average thickness of 5.6 m. Mineralisation extends over an area 1.6 km long and 1.3 km wide, at an average depth of 60 m. Due to the drillhole spacing, correlation of individual mineralised intervals within the sand package is not yet practicable. The estimate is based on drillhole intercepts of 0.40 m minimum thickness above a 0.01% eU3O8 grade, and allowing for up to 0.10 m dilution providing the average grade of the entire intercept is above 0.01% eU3O8. For each drillhole, intervals exceeding the minimum grade-thickness were summed, and holes with a cumulative grade-thickness of 0.05 m % U3O8 or greater have been included into the resource e estimate. Data for ten drillholes positioned on a nominal 400 m by 400 m spacing were put into the resource estimate. The holes are within an envelope constrained to the west and south by a geological basement feature, and to the north and east by grade-thickness variation. Tonnage calculations assumed a specific gravity of 1.8 t per cubic metre. Regional rotary mud drilling done during 2009 in the south of the subject tenement delivered significant uranium intersections at the newly named Plumbush prospect, which is located less than 5 km south of Blackbush, in a similar geological setting. To the end of October 2009, USA had drilled 16 holes there along two east-west traverses; the better mineralised holes indicated a footprint of mineralisation which extended over an area of approximately 2.0 km east-west by 1.5 km north-south. The prospect was shown to close off to the north, but appeared to remain open to the south. Further exploratory drilling to define the extent of potentially economic mineralisation here was scheduled for 2010.