The Cyclops prospect is located approximately 145 km west-southwest of Coober Pedy and ~58 km north of the Challenger mine, along the common boundary between ELs 4891 and 4892, two exploration tenements held by Teck Australia Pty Ltd which were optioned to MinQuest Ltd in August 2014. Prior exploration work undertaken by Teck since those licences' grant in May 2014 had defined strong, discrete magnetic and gravity anomalies at the Cyclops prospect. Forward 2.5D modelling of gravity and magnetic data had indicated that the anomalies' source could be a magnetite-rich body with dimensions of approximately 800 m x 250 m, starting at a depth of approximately 100-150 m below the ground surface, which is the suspected depth of cover over the basement sequence in the area. Both anomalies strike approximately 060° and dip steeply towards the north-west (60° / 330° – dip/dip direction). Later on, Teck's soil geochemical sampling done there detected a gold anomaly, coinciding with the geophysical anomalies, on one of two soil survey lines. When it was given access by Teck to the prospect definition data, MinQuest identified the Cyclops target as having a similar geophysical signature to the world-class Prominent Hill IOCG deposit, located at -220 km distance away to the east-southeast. The original target at Prominent Hill was a magnetic anomaly to the north of a semi-linear gravity anomaly. Prior to its discovery, previous explorers in the Prominent Hill area had drilled the magnetic anomaly and found very low grade copper mineralisation hosted by a magnetite skarn unit having carbonate-haematite-sulphide veining. The main deposit subsequently revealed at Prominent Hill consists of a haematite breccia complex that is fault-separated from a magnetite skarn to the north, thereby creating the form of geophysical anomaly described above. The breccia clasts consist of heavily altered sandstones and volcanic rocks, with mineralisation generally confined to the breccia matrix. In January 2015, MinQuest applied for PACE Initiative drilling subsidy funding in order to assist it with testing the exploration model that it and Teck had developed for Cyclops, which in the broadest sense involves a target consisting of a magnetic anomaly offset from a large gravity anomaly, where both occupy a favourable position, similar to at Prominent Hill, right on a deeply craton - tapping major crustal structure (the Karari Shear Zone). Factors cited in MinQuest's PACE drilling proposal as giving strategic importance to the Cyclops target were: • possessing geophysical indications of an IOCG deposit equivalent in size to Prominent Hill, probably emplaced at the time of the Hiltaba Magmatic Event (~1595-1575 Ma) - although notably the geometry of the magnetic and gravity anomalies is reversed compared to at Prominent Hill; • likely to have been subject to a high degree of structural control exerted through repeated tectonism along older re-activated faults in the Archaean basement, or via splays/break-back thrusting of the Karari Shear Zone (active ~1580-1540 Ma, but possibly as early as 1680 Ma); • Its situation within a tectonically dynamic environment at a continental palaeomargin, with variable stress regimes and variable fluid sources (mixing) prevalent; and • proximity to significant ENE and NW-NNW trending lineament structures that are known to be linked to IOCG mineral systems formed within the Gawler Craton. Four steeply inclined drillholes with 150° azimuth were proposed to test the Cyclops target. During May-June 2015, after receiving notification of its successful funding application given the PACE Year 8 project designation DPY8-34, MinQuest completed a total of 3 rotary mud precollared diamond cored holes at Cyclops, for a total penetration of 1181.7 m. CY15-001 (collared on the site of proposed hole CY14-001, with declination -55°) was abandoned at 117 m hole depth while still within in the cover sequence, due to poor ground conditions. CY15-002 (at the site of proposed hole CY14-002) and CY15-003 (at the site of proposed hole CY14-003), both with declinations of -65°, were able to be carried into the basement, and adequately tested the causative sources of both the gravity and magnetic anomalies. CY15-002 was rotary mud precollared to 118.2 m and then was taken to a total hole depth of 600.6 m : CY15-003 was rotary mud precollared to 142.4 m and then was taken to a total hole depth of 464.1 m. CY15-002 intersected a thick, probable Early Cretaceous sedimentary cover sequence consisting of shales and mudstones of the Bulldog Shale and calcareous sandstone of the Cadna-owie Formation. The lower portion of the Cadna-owie sandstone unit contains minor sedimentary breccia interbeds, and unconformably overlies a basement banded iron formation. The basement unconformity lies at a depth of 184.2 m downhole, and is marked by semi-massive pyrite blebs in the sandstone and a sharp contact between sandstone and underlying BIF. Basement lithologies are dominated by sericite-rich sandstone with pervasive magnetite or BIF, and minor carbonate and aluminous metasedimentary interbeds continuing through to 534.7 m. Healed fault zones of haematitic breccia were intersected at 271.1-272 m and 534.2-534.7 m. From there through to the end of the hole the rock consists of a foliated, potassic and haematite-altered light pink felsic schist. The felsic schist contains two xenoliths of the overlying BIF unit at 544.9 and 555.0 m. Trace to 1% chalcopyrite was observed in five distinct intervals of the drill core, with the largest occurrence spanning just over 11 m from 377.0-388.27 m. Abundant sericite, haematite and minor chlorite alteration is present throughout the basement lithologies. Haematite and sericite alteration in the banded iron formation is focussed along and within quartz and feldspar leucosomes. Chlorite alteration is limited to the carbonate interbeds. Pervasive moderate to strong potassic and haematite alteration has affected the felsic schist. CY15-003 was collared 350 m south-west of CY15-002, to investigate a section of the Cyclops gravity and magnetic anomalies expected to reflect greater structural complexity. At this location basement was reached at a downhole depth of 157.5 m, corresponding to a vertical depth of 130 m. The basement rock succession here is very similar to the sequence encountered in CY15-002, being dominated by haematite and sericite - altered BIF. Underlying the BIF unit is a heavily haematite and potassic - altered felsic schist, also containing a BIF xenolith. Samples taken from each drillhole were submitted for multi-element geochemical analysis. Results of the assaying show that no appreciable copper, gold, silver, lead or zinc contents are present. The minor amounts of copper, lead and zinc that were identified correspond to the visual identification in core of trace amounts of chalcopyrite, galena and sphalerite. Representative samples from each major rock unit cored by the two PACE drillholes were submitted for whole rock geochemical analysis. Additionally, MinQuest did limited microscopic petrography on five thin sections to confirm the classification of lithologies and alteration recorded during visual core logging. The modelled density of the target gravity anomaly ranged from 2.87 – 3.50 g/cubic cm, and the BIF actually intersected in the drilling has an average density of 3.16 g/cubic cm, with some measured values of up to 3.46 g/cubic cm. The BIF is also highly magnetic, with susceptibilities in it being 1000x more than those of the cover and underlying felsic schist. Given the high density and magnetic susceptibility of the Cyclops basement, it was clear that the magnetic and gravity anomalies seen there had been explained. MinQuest has concluded that the early stages of exploration done at the Cyclops prospect have revealed the presence of examples of several of the key geological criteria needed for IOCG deposits to form, as have been outlined by Groves et al., 2010. The company now thinks that the key to achieving IOCG exploration success on the Tallaringa tenements would be to determine the age and extent of the felsic schist (a ?Hiltaba Event - related intrusive unit) and assess its possible link to such mineralisation, as well as to look along the identified basement structures for former dilational areas that may have constituted structural traps for mineralising fluids. In this regard, there are several discrete gravity anomalies to the south-east of the drilled area that may represent additional targets.