A group of semi-contiguous licence areas in the Padthaway district, and one somewhat removed to the north-west, near Coomandook, have been explored for possible buried economic volcanogenic massive sulphide (VMS) style mineralisation that may have formed in Cambrian rocks which were fertile hosts in this portion of the Delamerian Orogen. The ground was taken up because, although it is known that VMS terrains typically contain clusters of deposits, it seemed that to date no modern systematic regional targeting exploration had occurred there. Two classes of VMS deposit geology are currently evident – a classic exhalative style, e.g. as at Rosebery (Tas.) and Angas (SA), and another comprising sub-sea floor emplaced high sulphidation mineralisation which has formed along fault controlled hydrothermal feeder systems, e.g. as at Mount Lyell (Tas.) and Kanmantoo (SA). In the past, the presence of pervasive cover sediments has been an impediment to exploration and as a result, the region has only been lightly explored. In addition, much of the cover is electrically conductive, impeding use of airborne electromagnetic (EM) surveying as a regional first pass targeting tool. However, it was hoped that recent developments in ground based EM survey technology (e.g. B-field data transformations) would allow Sherlock to 'see' through this conductive cover and to generate drill targets. During the first year of the project, first pass office-based geophysical data reprocessing and interpreting work was performed which identified 41 target anomalies within the subject tenement group based on subtle magnetic anomalism within reduced to pole residual magnetic images. Geophysical characteristics of known mineralisation in the Kanmantoo Group were studied to determine the applicability of various geophysical methods for future exploration. The outcropping Angas Pb-Zn-Pb-Ag-Au and Kanmantoo Cu-Au deposits of the eastern Adelaide Hills, along with the covered Sherlock Cu-Zn-Pb-Ag-Au prospect on the Padthway Ridge, were the key mineralised areas assessed. Orientation analyses of historical geophysical surveys indicated that ground EM survey methods probably wouldn’t work in places where the cover is >80 m thick. As a result of this finding, and then gaining an awareness of challenges faced in drilling through the local cover sequence, near the end of this reporting period the licensee made applications to DSD to reduce its tenement sizes to just embrace targets of interest where the basement lies at <100 m depth. This involved a voluntary 65% reduction of the total project area (see Env 12723). During Year 2 of the project, Sherlock Minerals undertook extensive negotiations with stakeholders to arrange access onto land, allowing for on-ground work to proceed in three focus areas. At Keilira, ~35 km north-east of the township of Kingston, subsequent ground magnetic surveying totalling 73 line km at 100 m + 50 m infill line spacing and modelling of resultant data defined eight targets requiring further follow-up. Drill testing of the best four targets was proposed. In this location an interpreted major transfer fault cuts across a south-east trending rift zone. VMS deposits are known to be associated with basin extensional rifting, particularly where conjugate transfer faults bisect the rift apex, creating dilational trap sites for migrating mineralising fluids. Consequently the Keilira area on EL 5385 was deemed prospective to have such mineralisation. The other priority VMS prone areas lay on EL 5386 near Willalooka and on EL 5384 near Sherlock, where twelve targets were identified. During Year 3 of the project, because of a protracted downturn in mineral exploration investment nationally, Sherlock Minerals decided to further reduce its Padthaway Project land holdings to retain only those parts containing the priority ground magnetic targets. Therefore ELs 5384 and 5387 were fully surrendered at the end of the reporting year (see Env 12998), and ELs 5385 and 5386 became much reduced in size. In early 2016 the company applied for and was later successful in receiving a grant of SA Government PACE Copper 2016-2017 collaborative drilling project subsidy funds totalling $115,000, to be used to fund 50% of the direct drilling costs for the planned first round of drilling. This drilling aimed to test four discrete features within the volcano-sedimentary sequence in the Keilira area, Anomalies 3, 5, 7 and 8, showing magnetic responses potentially indicative of types of magnetic sulphides (principally pyrrhotite) which are known to occur with VMS ores. The estimated vertical depth to reach the top of the Kanmantoo Group ranged between 35 m and 75 m. Seven angled trajectory holes were proposed, comprising rotary mud precollars which would be cased off and pressure cemented across the entire sedimentary cover interval before continuing into basement with diamond drilled tails designed to reach the modelled targets, for a predicted total of 1340 m of drilling. If sulphide mineralisation and/or altered country rocks were encountered by the drilling in any hole, a down-hole electromagnetic survey would be conducted immediately afterwards to check for off-hole conductors that could be investigated by follow-up drill testing. The commencement of this intended drilling was subsequently put on hold due to company budgetary constraints. The planned ground magnetic surveying over aeromagnetic anomalies which had been identified on ELs 5384 and 5387 was cancelled once the decision was made to fully surrender those licences. During Years 4 and 5 of the project, no field work was done. The company made plans to conduct ground EM surveys, to acquire data which might refine the siting of its proposed drillholes. However, on 2/5/2017 it formally withdrew from the PACE Copper subsidy funding agreement with DSD, stating that it was unable to secure the necessary supporting funds in time to honour the contract. Eventually Sherlock Minerals decided not to renew tenure of its two remaining licences for a second five-year term, being unable to perform its chosen work. The envisaged VMS prospectivity model awaits testing.