An area centred ~50 km south-east of Tailem Bend is being explored for possible economic buried primary stratiform and epithermal deposits of base metals that may have formed within Cambrian bedrock, close to where previous explorers' drilling had encountered narrow bedrock intercepts of ore grade Zn-Pb-Cu-Ag mineralisation. Exploration commenced during December 2008 with an initial programme of orientation soil and calcrete geochemical sampling (10 samples of each material type) done in the vicinity of the mineralised Pasminco drillholes that were completed during the late 1990s. The minus 2 mm soil fraction and the crushed nodular calcrete were assayed by Genalysis using their Terraleach 7 digestion and partial leaching technique. The calcrete samples produced only background values for base and precious metals, with Ca values in the range 19-25% indicating suitable sampling media. Soil sampling produced a single standout result of 21,912 ppb Zn, versus background averaging 800-2000 ppb. No other trace metals were significantly anomalous. It was suspected that the highly anomalous zinc result is due to contamination of the sample site, as the prospect area is located in farmed paddocks and is also traversed by a public road with fences built on either side. Therefore it was planned to re-visit the original site to re-sample it, and also to visually assess the likelihood of possible cultural contamination of the soil, as well as to carry out several further soil sampling traverses. During December 2008-January 2009, the licence partners drilled 2 rotary mud precollared, inclined diamond holes along trend from the earlier Pasminco holes, for a total penetration of 674.47 m (including 197.8 m of precollars), to search for possible higher grade strike and dip extensions of known base metal mineralisation. The drilling intersected several zones of disseminated sphalerite - galena - chalcopyrite mineralisation within cored metasediments ascribed to the Lower Cambrian Tapanappa Formation, in positions adjacent to the contact with the Talisker Calc-siltstone. As this stratigraphic setting hosts economic base metal mineralisation in the Angas mine at Strathalbyn, the need for ongoing exploration was seen as obvious. However, due to the conductive cover materials present in the licence area (carbonaceous clay/shale and saline groundwater), it was realised that conventional geophysical techniques would be ineffective to use for drill targeting. The licensees decided to continue investigating the applicability of surface geochemistry for identifying bedrock targets. The host metasediments for the mineralisation were seen in core to consist of banded to massive quartz-biotite schists (originally sandstone and shale), with subordinate limestone (marble), and were correlated (at least in part) with the Tapanappa Formation. Silica +/- chlorite +/- garnet alteration is present locally. Mafic to intermediate composition igneous rocks are common, and may comprise both intrusive and volcanic units. Trace to minor sphalerite, galena and chalcopyrite were observed in drill cores of both holes, along with trace to minor pyrite and pyrrhotite. Peak assay values returned from selected samples of the drill cores (taken over nominal 1- metre depth intervals) were 2037 ppm Cu, 2975 ppm Pb and 2692 ppm Zn. During May 2010, the zinc anomalous soil sample area was revisited and the suspect site was found to be adjacent to two fencelines, one being very old and degraded, which has been replaced by a parallel new fence erected less than a metre away. A second soil sample traverse was completed crossing the original, using identical sampling and digestion methods, but only Zn was analysed, again using AAS. The sample on this traverse closest to the fencelines yielded 3189 ppb Zn, with the remainder of the sample returns generally in the range 1300 to 2000 ppb Zn. In addition, the original highly anomalous site was re-sampled, yielding 5198 ppb Zn. It was concluded that the 11 follow-up samples collected here have clearly demonstrated that the soil zinc anomalies are spatially linked to old fencelines, which will have released many fine particulate zinc compounds into the soil through the corrosion of galvanised wires, and thus these anomalies do not reflect basement-derived geochemical signatures. In the past, using electrical geophysical methods to detect base metal sulphides beneath conductive and chemically reactive saline Cainozoic sediments had proven extremely difficult at Sherlock, and therefore the licensees decided that drilling of specific types of magnetic response might provide the most cost-effective way forward. No field work was done during licence Year 4, due to a lack of availability of a suitable drill rig. Drill sites were chosen over two selected magnetic anomalies, where it was proposed to drill two diamond drillholes each approximately 500 m deep. Exploration in licence Year 5 comprised the drilling of 2 rotary mud precollared, west to north-west inclined HQ3/NQ2 diamond holes for a total penetration of 1340 m. Both holes entered basement metasediments beneath ~99 m thickness of Cainozoic Murray Basin sediment cover. The basement metasediments comprise banded to massive quartz biotite schists, originally sandstone and shale, with subordinate limestone (marble), and were tentatively correlated (at least in part) with the Tapanappa Formation and the Talisker Calc-siltstone. Silica, chlorite and garnet alteration is present sporadically. The metasediments are extensively intruded by igneous dykes having compositions ranging from mafic to intermediate. Some of the mafic rocks may be volcanic rather than intrusive, and some rocks of more felsic composition were tentatively logged as rhyolite. Pyrrhotite and pyrite occur commonly in both holes. One hole, 12_SHR_003, encountered several narrow zones of sphalerite mineralisation, with lesser galena and chalcopyrite, in carbonate-rich metasediments, e.g. 4 m @ 0.41% Zn + 0.31% Pb from 642-646 m downhole. 158 drill core samples were selected to send for aqua regia digestion and AAS assaying. The peak intercept reported from drill core assay results was 6.67 m @ 0.76% Zn + 0.12% Cu from 678-684.67 m downhole, including 2 m @ 1.7% Zn from 679-681 m. Six samples of the pyrrhotite - bearing mafic lithologies were selected for petrographic examination. They were described as metadolerite and amphibolite of igneous origin, and skarn derived from impure dolomite. No nickel sulphides were observed in these rocks.