No new work was carried out on the subject Stony Hill licence area during its past year. The South Australian Iron Ore Group Pty Ltd (SAIOG) has held this tenement (successively under ELs 3287/4451/5617) since 2/12/2004, but has now surrendered it in full. The ‘iron ore rights’ for exploration done on the tenement have been held by Centrex Metals Ltd, while ‘other mineral rights’ have been held by Lincoln Minerals Limited. Since 2007, this tenement, along with other tenements within the western Middleback Range and the central Eyre Peninsula, has formed part of a Combined Reporting Group for the purposes of the Northern Amalgamated Expenditure Arrangement made with PIRSA. In brief, the total prior exploration conducted on this area has included: • In November 2005, an airborne magnetic and radiometric survey of 1635 line km • In 2007, an airborne magnetic and radiometric survey of 401 line km flown over the remaining southern portion of the tenement • In 2008, exploratory RC drilling of 24 holes for 2769 m, targeting iron ore • In 2008, surface geochemical sampling of calcrete • In 2009, geological mapping and rock chip sampling. In its iron ore exploration, Centrex focussed on the potential for DSO haematite, with a secondary consideration being magnetite and haematite BIF. Although the tenement area contains small amounts, in relative terms, of magnetite/haematite BIF, plus potentially significant amounts of low grade/marginal magnetite-rich granite, it is now believed that any future discovery of DSO iron ore will likely require significant exploration expenditure. The current economic climate is not favourable for iron ore, and Centrex believes that an improvement in the iron ore price to a level which might justify making such significant exploration expenditure is many years away. For this reason, the joint venture partners have decided to surrender the tenement in full.