An area of shallowly covered Curnamona Province metalliferous basement rocks abutting the South Australia / New South Wales border, approximately 80 km north-east of Olary, is believed to be prospective for Broken Hill and McArthur River style stratiform lead-zinc-silver and Ernest Henry IOCG - related or Cloncurry style stratabound copper-gold deposits which may have formed within an extensive strike length of Lower Proterozoic metasediments that are lateral equivalents to the Broken Hill Group. The possibility of finding sedimentary uranium mineralisation in the cover sequence is also being addressed. Most of this tenement area was previously covered by EL 2776, which formerly was the subject of two joint venture agreements, one made with Southern Cross Resources Australia Pty Ltd to explore for economic Tertiary uranium deposits and one made with Inco (Australia) Ltd to explore for base and precious metals in the Proterozoic basement. Southern Cross Resources withdrew from the joint venture in November 2004 as drilling results were disappointing because palaeochannel sands were generally not present and downhole and geophysical responses were not economically significant for uranium. Inco, with a change in corporate focus to nickel, terminated their option agreement in January 2004. A new joint venture agreement applying to EL 2776 was signed with Western Plains Gold Ltd in September 2004, to explore for iron-oxide associated copper-gold (IOCG) mineralisation. The focus for this joint venture is the K1 magnetic anomaly that is interpreted to denote the presence of a large ironstone body under approximately 120 m of surficial cover. On 30/11/2004, the area of EL 2776 was greatly reduced so as to cover just the K1 anomaly footprint; EL 3328 was taken up shortly afterwards, to include afresh much of that relinquished ground, because numerous previously identified prospects exist throughout it, all of which are still poorly explored and require additional follow-up. Data compilation work undertaken for these prospects to date, plus the licensees' recent drilling of DDIN6 at the Mammoth prospect (formerly known as K9), together with their relogging of the old, ineffective BHP drillhole put in at the K1 prospect, have provided very encouraging insights and have highlighted the enormous potential for discovering world class base metal and copper-gold deposits in this central part of the Curnamona Province. Recent diamond core drilling performed on PlatSearch’s adjacent tenements in the Mundi Mundi area of NSW, plus extensive in-house research work conducted to date, has led to the development of a primarily stratigraphically controlled, empirically driven mineralisation model for the region. Data obtained from drilling done there over time has demonstrated that there is significant prospectivity for stacked zones of mineralisation to have formed within favourable host rock sequences via repeated mineralising events. The thickness and persistence of the mineralised sequences (the Bimba/Ettlewood Formations for Zn-Pb-Ag and the Upper Albite/Himalaya Formations for Cu-Au) is remarkable, and they now rank the highest for harbouring a major new undiscovered deposit in the Broken Hill Domain. The Junction Dam tenement area has previously been covered by a detailed gravity survey which defines the Broken Hill Group sequence clearly and indicates that it thickens and/or becomes more dense to the north-west, directly along strike from PlatSearch’s recent drilling in NSW. This is interpreted as a structural and/or basinal thickening. Conceivably therefore, within the subject EL 3328, the strike length of the aforementioned prospective horizons may extend for at least 10 km, and they may constitute a persistently mineralised stack up to 3 km thick. No field work took place on EL 3228 during the first two years of tenure, while geophysical anomalies and possible drilling targets were being defined, and while joint venture negotiations and Aboriginal heritage land clearance surveys were in progress. During the third licence year, in November 2007, far more detailed 200 m x 200 m prospect grid gravity surveying was carried out over previously mapped Willyaman basement gravity and structural anomalies, for a total of 606 stations read. The doubly plunging Yarramba Antiform and K16 gravity prospects were selected by Teck, after its interpretation of the new gravity data, as priority targets to drill. Coincident bullseye magnetic and gravity anomalism seen at K16 was deemed to be in a favourable setting for IOCG mineralisation to occur, while the 5 mGal amplitude Yarramba gravity anomaly was considered to be prospective for MacArthur River style or Broken Hill type mineralisation. An application was made to PIRSA for the grant of PACE Initiative drilling subsidy funds to help defray the cost of testing these targets, and this application was subsequently approved in September 2008 as Drilling Project DPY5-21 (see Env 11726). Both targets were tested during licence Year 4, each with a single diamond drillhole carried to near a planned depth of ~400 m. A total of 790.3 m was drilled during July-August 2008, which included a combined 146.8 m of rotary mud precollars. The K16-01 hole encountered Palaeoproterozoic magnetite-BIF quartzites of the Willyama Complex from 64 m depth down to the hole's TD of 372.7 m. Lithologies consisted of bedded quartzite, very fine grained siltstone, and magnetite BIF, chert and jasper. The Yarramba Antiform hole, YM-01, encountered Palaeoproterozoic Willyama Complex basement below 82.8 m depth, comprising metapelitic and psammopelitic units composed of shale to phyllite and low grade schist. YM-01 has elevated sulphide mineralisation throughout, mainly contained within highly deformed and sheared veins that are commonly formed of quartz and pyrite with lesser chalcopyrite and very rare sphalerite. Teck conducted a brief geochemical review of the drillholes. It was immediately apparent that K16-01 had not intersected any IOCG style brecciation or mineralisation, however, there was thought to be some evidence, deduced from the elevated content of stratabound and possibly stratiform pyrite, that there is possibly sedex style mineralisation in the district. It was interpreted that YM-01 is probably located distal to any Northern Australian style sedex mineralising system. During 2009-2010, which was the fifth year of tenure, farminee Marmota Energy Limited (Marmota) assumed management of exploration on EL 3328 under the terms of a joint venture agreement approved on 11/9/2009 that allowed it to explore there for uranium. The main target for Marmota in the Junction Dam area, which lies within the south-eastern part of the Mesozoic to Cenozoic Frome Embayment (covering parts of the Eromanga and Lake Eyre basins), is sediment-hosted roll front style secondary uranium deposits that may have formed within Tertiary sediments of the Yarramba Palaeochannel system. The subject licence area was believed to contain more than a 10 km palaeoslope extent of this system of channel fill units, and its western boundary lies only 10 km east of the major Honeymoon uranium deposit where an Inferred Resource of 6.5 million pounds of U3O8 is contained within related Eyre Formation strata. Work conducted by Marmota during the reporting period included: • soil geochemical sampling on a regular 1 km x 1 km grid (44 samples assayed) over a proposed drilling area on the central western part of the tenement termed the Saffron prospect. No anomalous uranium was found at the ground surface; • acquisition of a detailed ground gravity survey over this prospect and elsewhere on the tenement during September-October 2009, on a 250 m x 250 m grid (1324 stations read); • acquisition of a 35 line km ground EM survey during February 2010, also over a portion of the Saffron prospect, along 18 east-west lines at 200 m x 100 m station spacing, using a 100 m x 100 m transmitter loop to take 266 in-loop soundings; • the conduct of an Aboriginal heritage clearance survey with members of the Kuyani people; • conducting an initial exploratory rotary mud drilling campaign of 20 vertical holes totalling 2855 m, including wireline geophysical logging of the completed open holes, and the cutting of short bottomhole diamond 'tails' in 2 holes, JDRM0108 and JDRM0123; and • performing laboratory chemical analyses of selected downhole samples of interest obtained from the drilling campaign (all drill cuttings were routinely sampled at 2-metre depth intervals for uranium, and the two cores intervals were analysed for a wider suite of elements, in places down to 50 cm sample intervals). From the calibrated downhole gamma ray log readings which were recorded, 15 drillholes returned peak grades of over 100 ppm eU3O8, the radiation level which Marmota had decided to use as a lower cutoff for denoting significant mineralisation. High grade logged radioactivity intercepts were encountered in 9 holes, with peak equivalent grades over 1000 ppm eU3O8, the highest reading being 7551 ppm eU3O8. The best downhole sampling geochemical assay result was 381.31 ppm U returned from hole JDRM0120 over the depth interval 126-128 m. It was recommended that follow-up drilling be undertaken shortly in areas showing higher gamma ray log readings, to gather information to help the company better understand the geology and mineralisation that it had encountered. The use of a Prompt Fission Neutron (PFN) logging tool was advised as essential to compare its results with the downhole gamma ray logging, because the PFN tool directly measures the content of uranium in sands surrounding a borehole whilst simultaneously recording the gamma ray spectral field generated from uranium and its daughter products present in the same zone, thus enabling direct comparisons of the two methods. Another recommendation that was made was to cut diamond cores within the mineralised zone in more holes, to enable a better sample return and therefore to ensure a more reliable geochemical analysis.