An area centred approximately 50 km south-east of Coober Pedy has been taken up after it was surrendered early in 2000 by the BHP Minerals / Western Mining Corp. joint venture consortium (cf. Env 8434). The main mineral commodities now being sought by new licensee Goldstream Mining are economic gold and base metals in Proterozoic basement-hosted deposits of iron oxide - associated copper-gold (IOCG) type similar to Olympic Dam. During the first licence year, Goldstream undertook an assessment of regional aeromagnetic data, previous ground gravity survey data and drilling-derived geological information (including petrological studies), which highlighted a number of hidden targets that required further modern geophysical exploration prior to drill testing. The newly disclosed highly encouraging IOCG drill intercepts made by the Minotaur Resources / BHP Billiton / Normandy Exploration / Sons of Gwalia / Sabatica JV at their Prominent Hill prospect, located to the south-east of EL 2781 Mount Woods, necessitated a re-evaluation of gravity data, with infill gravity required on the new targets. However, the timing of when Native Title heritage clearances might be obtained was expected to ultimately determine the time frame for doing further work on the tenement. In March 2002, Anglo American Exploration (Australia) Pty Ltd became operator of the Mount Woods licence area by means of a joint venture agreement that it signed with Goldstream. It had already carried out a preliminary data compilation and in-house review of previous company and Government exploration, and had inspected and relogged available stored samples from historical drillholes. During the rest of licence Year 2, Anglo's activities in the field included reconnaissance sampling and evaluation of all outcrop in the subject area, acquiring a detailed gravity survey at variable grid spacing over the majority of the tenement, obtaining Aboriginal heritage clearances over potential drill targets, conducting soil geochemical sampling traverses across drill targets, drilling 15 exploratory RC holes and then rehabilitating all drill sites, assaying the drill samples, and performing petrographic examinations of lithologies encountered during the drill programme. A regional tectonic interpretation of the area was undertaken by consultant Leigh Rankin utilising available geophysical datasets supplemented by limited geological data obtained from the very limited outcrop and historical drill hole information. A total of 3858 gravity stations on variable grid spacings of 400 m x 400 m, 400 m x 800 m, and 400 m x 1600 m were collected by Fugro Ground Geophysics as part of a much larger survey acquired on the Mount Woods Joint Venture and adjacent Anglo American tenements. This yielded in a significant increase in data quality in the region. Eleven soil geochemical sampling traverses were completed across potential drill target areas (total 474 samples). These were analysed for a multi-element suite, but no anomalous values were returned. Aboriginal heritage clearance surveys were completed over all potential drill target areas. These areas were cleared as small ‘postage stamps’, allowing for some variation in the final drill site. No major cultural difficulties were encountered. Subsequently, 15 RC holes were drilled on selected airborne magnetic and ground gravity anomalies, for a total penetration of 1832 m. A number of concealed basement lithotypes were encountered including gabbros (ARC001-8, 13), granite (ARC001, 14), dolomitic carbonates (ARC009, 10, 10A), and magnetite-rich felsic gneisses (ARC011-12). 3-metre composite drill cuttings samples from these holes were assayed for a multi-element suite (total 470 samples), but no significant anomalism was recorded. During licence Year 3, the following activities occurred: - a suite of various lithotypes from drilling completed in 2002 was petrographically examined. - a ground gravity survey was completed over a small area, with a total of 31 stations recorded at 200 m x 1000 m spacing to define a possible gravity anomaly extending across from EL 2760. - an Aboriginal heritage clearance survey was completed over one target area (MW16), covering potential drill sites. - 49 line km of ground magnetic surveying were completed at the MW16 prospect. - 26.6 line km of TEM surveying were recorded over the MW16 Prospect on 6 lines using 200 m loops. Follow-up of three anomalous areas entailed an additional 18.6 line km of TEM coverage on 13 lines using 100 m loops. - a petrographic examination was made of drill chips from 3 intervals in historical drillhole CR94003. - drillhole ARC029 for 198 m was completed on the MW16 prospect, but yielded no significant drill cuttings sample assay values. Because of the wholly unremarkable results that it had obtained via the above-mentioned work programs, Anglo decided in December 2003 to withdraw from its joint venture with Goldstream (effective from 11/2/2004). During licence Year 4, after Goldstream had resumed management of EL 2781, that company re-assessed all of Anglo's exploration target generation work, completed a rehabilitation report for the holes drilled by Anglo, commenced its own RC percussion exploratory drilling, of 12 inclined holes for 1816 m, and undertook a metallurgical study of recovered iron ore drill core samples. Significant magnetite-Cu-Au mineralisation was identified by Goldstream's drilling at the Cairn Hill prospect. This mineralisation remained open in all directions and showed positive metallurgical characteristics, conducive to making a mineable orebody resource estimate of 8 to 14 Mt, within an open cut 150 m to 250 m deep. However, this estimate was conceptual in nature, requiring further drilling to determine whether a mineable Mineral Resource might be delineated. The 2004 drilling campaign at Cairn Hill was located on five traverses spaced approximately 200 m apart, covering a strike length of 800 m and tested the main magnetite zone to a maximum vertical depth of 200 m. The drilling intersected predominantly mafic banded granitic gneisses beneath 5 to 30 m thick unconsolidated sands and sediments. Mineralisation within the bedrock was characterised by a massive magnetite horizon with visible pyrite, chalcopyrite ± pyrrhotite sulphides. Significant Cu-Au intercepts were made in 10 of the 12 holes. The massive magnetite horizon revealed at Cairn Hill forms part of a major 18 km long regional linear aeromagnetic high. Due to this horizon's very high magnetism, which precludes making any meaningful compass azimuth or dip measurements nearby, the stratiform mineralisation model for it adopted by previous explorers had assumed an incorrect dip direction, hence most of the earlier drilling was angled to the south. However, Goldstream's 60 degree inclined RC holes were drilled with a north azimuth, and successfully demonstrated that the horizon actually dips to the south. This meant that historical drilling had inadequately tested the area. The mineralisation remains open in all directions. It has now been drill tested by 19 percussion and diamond holes located on four 200 m spaced sections. Massive magnetite bodies which vary in thickness from 10 to 40 m contain copper sulphides and gold mineralisation with average grades varying between 0.3 to 0.8% Cu and 0.1 to 0.3g/t Au. The presence of massive magnetite also highlighted the potential of the Cairn Hill prospect to host a major iron ore deposit. As a consequence, a preliminary metallurgical study into the characteristics of the mineralisation was conducted by SGS Lakefield Oretest Pty Ltd on a bulk sample of massive magnetite, via Davis Tube magnetic separation tests conducted on a composite of samples recovered from a 5 m interval in drillhole CHRC002. The tests showed that a simple magnetic separation using a coarse grind of 75 microns produced excellent recoveries of a high grade magnetite concentrate assaying 70.2% Fe. Removal of the silica, phosphorous and other deleterious elements from the iron product would be necessary for it to be acceptable to end users. The non-magnetic fraction, representing 12% of the original sample, contains the bulk of these product deleterious elements in the form of copper sulphide, gold, silicates and apatite. This portion of the concentrate assayed 3.81% Cu and 1.75g/t Au, but flotation separation tests are expected to further upgrade the copper-gold recovery. Because separate magnetite iron ore and copper-gold products may be achievable from an open cut mining operation, Goldstream expected that production of two saleable commodities from the same mine would greatly enhance the possibility of a viable development. In another exciting development for the Mount Woods region, Goldstream's more precise re-assaying of the Anglo ARC-series holes for platinum, palladium and gold to 1 ppb levels identified an anomalous PGE (Pd+Pt+Au) prospect. A best result of 132 ppb PGE was returned from one sample recovered in hole ARC010. This sample has a 3:1 Pd to Pt ratio, and had been logged as a pyroxenite by Anglo geologists. The PGE prospectivity upgrade was reinforced by results that Goldstream obtained in September 2004 from re-assaying Anglo's former RC intercept of 0.49 g/t Pd+Pt+Au, that came from a bottom hole metagabbro at around 150 m depth in hole ARC025 on the adjoining Kangaroo Dam EL 2760. Here the Pd to Pt ratio was assayed as being 5:1. During licence Year 5, a ground magnetic survey and a ground gravity survey were acquired at the Cairn Hill prospect along a newly laid out 100 m x 100 m irregular grid conforming to the AMG84 Zone 53 datum. The new gravity coverage was made in April 2005, with a total of 62 stations read at 20 m intervals along grid lines 511300E and 511700E. These lines were surveyed in order to infill the existing gravity grid and to test if more detailed profiling could resolve the two separate mineralised horizons. The resulting Bouguer anomaly plots, particularly that for line 511300E, clearly showed two gravity peaks, with the southern one being of higher amplitude. The detailed ground magnetic readings were made in May 2005, at stations positioned every 5 m along the prospect grid lines, and they refined the mapped outline of the major magnetic units at Cairn Hill, clearly showing the presence of two main horizons which appeared to coalesce to the east. Structural breaks to the two horizons were also now clearly evident. Over the period January to December 2005, another 25 southwards-inclined RC percussion holes for 2783 m were drilled by Goldstream at the Cairn Hill prospect to further define the buried magnetite mineralisation, in a programme which was designed to (i) infill the two main lodes with 80 to 100 m spaced drill traverses and hence assess the open cut potential of mineralisation down to a vertical depth of 120 m, and (ii) to test for any eastwards strike extensions of the magnetite-rich strata. The drilling intersected two main massive magnetite bodies identified as North lode and South lode over 1300 m and 500 m strike lengths respectively. North lode is steeply south dipping (65-85°), whereas South lode has a much shallower south dip of 30-45°. Four reconnaissance holes (CHRC028-031) that were drilled between 700 m and 1800 m east of the main Cairn Hill area also intersected broad zones of massive magnetite mineralisation. There is insufficient data to determine the dip of this eastern extension to mineralisation, other than to say it appears to be southerly dipping. Lode widths of 4 to 64 m of massive magnetite were intersected. These intercepts confirmed that the thickness of the massive magnetite mineralisation at Cairn Hill is directly correlatable to the intensity of the magnetic response. Strong copper and nuggety gold mineralisation is associated with the magnetite mineralisation in both the North and South lodes, however, the eastern extension area was found to be deficient in both. Later in the year, a review was conducted of WMC's open file company reports data for its formerly identified and named Centaurus, Penrhyn, Cairn Hill and Cairn Hills Offset prospects. These data included results from IP, gravity, and ground magnetic surveys, as well as from numerous soil sampling surveys (orientation, regional, and prospect-scale). The geophysical digital data were reprocessed and imaged. The IP data files were processed by Zonge who carried out 2D smooth model inversions and provided the data to Goldstream as pseudocolour plots and as XYZ data files. The ground magnetic and gravity data were imported into ERMapper™ and regridded to enable different image schemes to be trialed. Strong IP chargeability anomalies were identified on all three of the WMC survey lines at Centaurus, and were recommended for drilling. In addition, Goldstream noted the presence at Penrhyn of a discrete moderate amplitude gravity anomaly, off-set from any magnetic features, which could represent a high priority target for IOCG mineralisation. This offset gravity anomaly possibly is related to skarn alteration around the rim of the Penhryn pluton, and might arise from haematite-hosted copper-gold mineralisation. Several drillholes were proposed.