A group of adjoining tenements covering ground situated between Ceduna and the Trans Australia Railway are being explored for possible economic buried Tertiary marine placer deposits of heavy mineral sands. During the 2007-2008 joint reporting year, JV project operator Iluka did no exploration work on ELs 3233, 3333 or 3637, but instead undertook mining feasibility studies for the recently discovered Jacinth, Ambrosia and Tripitaka heavy mineral sands deposits that are located on ELs 3233 and 3742. A small amount of brownfields exploratory drilling was done on EL 3742 along a traverse located on the south-western side of the Jacinth deposit (17 holes for 559.5 m; YE1601 - YE1617). The detailed feasibility study work being done on EL 3742 was brought near to completion. During the reporting period, Iluka undertook drilling around and near the sites of proposed mine infrastructure. This land sterilisation drill-based checking process was necessary to carry out in order to avoid building infrastructure on top of otherwise undetected mineralisation. Other drilling was undertaken for the purpose of locating suitable materials for road building. In total, 277 holes for 6421.3 m were drilled. Other activities undertaken on EL 3742 reflected the exhaustive preparatory process that Iluka was following before it could put the Jacinth and Ambrosia discoveries into production. Examples of these activities include the conduct of environmental protective monitoring surveys to assess vegetation, indigenous flora and fauna, air quality, hydrogeological and soil properties. Some of these activities were also done on ELs 3333 and 3233, mainly in relation to the planned water supply bore field development. A formal Mining Lease Proposal for the Jacinth and Ambrosia heavy mineral sands deposits was submitted to PIRSA in August 2007. No drilling was done on EL 3333, but on ELs 3233 and 3316 pre-feasibility drilling of the Tripitaka discovery was progressed during April-May 2007 to obtain data to use for the delineation and upgrade of the resource model from inferred to indicated. In total, 422 holes for 10,738 m were drilled. A nominal hole spacing of 50 m was used along drill traverses, with 200 m between the traverses. Several traverses were infilled to 100 m to provide further definition at the margins of the deposit. In addition to routine hole sampling for HM assay, 15 bulk metallurgical samples were collected to use to characterise the deposit's overall mineral assemblage. Flora and fauna status baseline surveys, drilling of palaeochannels to look for mineral processing water supplies (14 holes), and an airborne geophysical survey were also undertaken at Tripitaka. Early in May 2007, a 1042.5 line km + 553.5 line km airborne TEMPEST electromagnetic and magnetic survey was flown over two areas, Tripitaka South and Tripitaka West respectively, using differing flight line directions and 1 or 2 km line spacings, but a common 120 m mean terrain clearance height. Some of the resulting AEM data was used to guide the water prospecting RC drilling of 12 holes for 720 m that was done during September 2007. Two follow-up rotary mud holes for 159.1 m were drilled by Iluka to allow for pump testing of aquifers. On EL 3638, exploration for HMS consisted only of surface grab sampling (33 samples) to gain further information about the extent of the Typhoon prospect. A first partial relinquishment of 274 square km or 14.5% of the former area of EL 3742 was made on 24/12/2007 and approved by PIRSA on 1/2/2008 [see Env 11571]. A first partial relinquishment of 294 square km or 57.2% of the former area of EL 3333 was made on 24/12/2007 and approved by PIRSA on 1/2/2008 [see Env 11571]. During the 2008-2009 joint reporting year, Iluka undertook exploratory drilling, resource delineation drilling and additional deposit mining feasibility studies. Part of the exploratory drilling, comprising 39 holes for 1849 m (YE2157 - YE2195), was performed on EL 3742 near Ambrosia to follow up a possible heavy mineral anomaly and for pit edge definition. An Aboriginal heritage protection survey, landscape surface runoff analysis, and a vegetation survey were undertaken. The resource delineation drilling was undertaken on ELs 3638 and 3742 at the Typhoon prospect, on a nominal 50 m x 200 m hole spacing, with the aim of developing an (inferred) resource estimate. 11 vertical open aircore holes for 472 m on the former licence area, plus 133 similar holes for 6549 m on the latter, were drilled during August-November 2008. Further sterilisation drilling, of 9 holes for 343 m (JA0869 - JA0871, AM0898 - AM0903), was done at Jacinth and Ambrosia as part of the feasibility stage completion, which occurred during March-June 2008. Following subsequent receipt and approval of the feasibility study final report by the Iluka board of directors, Jacinth and Ambrosia entered into the early stages of mine development. In June 2008, a new mining lease covering Jacinth and Ambrosia (ML 6315) was granted to the company by PIRSA. From 4/7/2008, reporting about activities occurring on ML 6315 within the Jacinth and Ambrosia deposit areas became subject to the requirements of that class of mineral tenure. Other, regional exploratory drilling was undertaken on EL 3233, where where 157 holes for 5873.5 m were drilled (YE2338 - YE2356, YE2359 - YE2371, YE2603 - YE2725). A total of 557 samples were taken from 44 holes and submitted for HM assay. Prefeasibility work on the Tripitaka prospect was completed, and a mineral claim was pegged. An Indicated Mineral Resource for the part of the deposit located on EL 3316 was estimated, of 26.6 Mt @ 2.2% HM. A 941 square km portion of EL 3638 comprising its southern 51% was relinquished on 18/10/2008. During the 2009-2010 joint reporting year, further resource delineation drilling of 53 holes for 1478.5 m was done on EL 3742 at the Typhoon prospect, at a nominal 100 m hole spacing (TY0096 - TY101, TY106 - TY0152). Over the period April to August 2009, regional 2 km spaced traverse and 800 m hole interval exploratory drilling was conducted in the northern parts of EL 3742 (98 holes for 5499.7 m) and on EL 3233 in areas north-east of the Tripitaka deposit (94 holes for 5052.5 m). A zone of coherent and anomalous HM was encActivitiesountered on drill traverse 3742/1, ~8-10 km north-east of the Ambrosia deposit. A second trial of ground penetrating radar (GPR) technology was attempted as a survey along four transects over excavated sections of the Jacinth orebody test pit on EL 3638. The aim was to establish whether there is mass differential radio wave transmissivity of various Eucla Basin sediments, by profiling the near-surface strata using GroundRadar's new-to-market UltraGPR acquisition technology incorporating recent advances in electronics and antenna transmitting power. Unfortunately, due to the high electromagnetic conductivity of all of the geological materials present at Jacinth, the result was complete signal attenuation – as per the outcome of first, 2006 survey performed using the Mala GPR system. Near-mine soil sampling and panning was done at Typhoon in late 2009 (112 grab samples), which disclosed some >1% HM anomalism considered worthy of follow-up. Mining of the Jacinth and Ambrosia HM deposits located on ML 6315 commenced in late November 2009, ahead of time and under budget. The first export shipment of heavy mineral concentrate was made from Thevenard at the end of 2009. Updated in situ mineral resource and HM grade figures for both deposits, treated individually, were released, these separately categorised into JORC Measured, Indicated and Inferred Resource tonnages and giving the related contained percentages of ilmenite, zircon and rutile. During the 2010-2011 joint reporting year, in March 2010, a fixed wing airborne magnetic/radiometric/DTM survey was acquired over the Jacinth, Typhoon, Atacama and Immarna prospects. A total of 13,285 line km were flown with 100 m flight line spacing, 1 km tie line spacing and a nominal sensor height above the ground surface of 20 m. The radiometric data were processed by a consultant geophysicist into a number of composite and ratio plots using the uranium, thorium, and potassium spectral bands. The plots were used to select linear radiometric anomalies of possible HM accumulation interest for surface sampling and drill testing. Not all such radiometric highs originate from surface or near-surface HM trap settings, as Iluka now understood and explained with contrary examples from its past investigations. But sometimes they do. An exploratory drilling programme was conducted by Iluka on EL 3742 and adjacent tenements to investigate a HM prospective Tertiary shoreline which had been explored, but only in part, by Geopeko in the early 1990s. Geopeko had found the Immarna prospect HM occurrence, but had failed to test the area adequately. Another drilling programme undertaken in 2010 by Iluka, at the Atacama prospect, was designed to outline the location and orientation of any palaeo-shorelines and to test them for preserved HM-rich strandlines, following Iluka's discovery there of a single hole, 9 m wide high grade HM intercept (YE 3551, 7.6% HM) made during its regional traverse drilling in late 2009. The airborne radiometric data acquired in March 2010 had also resulted in recognition of a thorium anomaly attributed to exposed radioactive HM lying at surface (as depicted on an enclosed radiometric data plot). The new drilling work subsequently defined a number of buried mineralised strandlines which became referred to as the Atacama deposit. For the above programmes a total of 461 holes were drilled for 24,012 m. 5747 selected downhole samples from these holes were submitted for HM assaying. A Jacinth prospect brownfields exploratory drilling campaign of 61 holes for 2568 m was also conducted in 2010 on EL 3638 (YE3918, YE3919, YE3921 - YE3926, YE3934 - YE3987), and this yielded a number of >1% HM mineralised intercepts. On 15/7/2010, Iluka announced to the ASX an updated JORC-compliant Inferred Mineral Resource estimate for the Typhoon HM deposit of 1.34 Mt @ 6.1% HM, that was based on samples collected from infill drilling of the deposit. On 28/1/2011, Iluka announced to the ASX a maiden JORC-compliant Inferred Mineral Resource estimate for the Atacama HM deposit of 3.3 Mt @ 11.3% HM. Unlike the HM assemblages of the Jacinth and Ambrosia deposits, which have a combined zircon content of ~50%, the new resource additions are ilmenite-dominated, containing 75% ilmenite and only 15% zircon.