During the eighth year of tenure, work done on EL 2639 included: - the conduct of infill ground gravity and CSAMT surveys; - geophysical modelling and interpretation of the new survey data; - geological interpretation and refinement of drilling targets; - the conduct of a work area Aboriginal heritage clearance survey; - undertaking exploratory diamond drilling at the Midway prospect, of 1 inclined hole for 998.9 m; - undertaking exploratory percussion drilling at the Chianti prospect, of 2 vertical holes for 956 m; - re-assessing the licence's potential for stratiform copper mineralisation; and - doing preliminary soil geochemical sampling over stratiform copper targets. In January and May-June 2002, infill ground gravity data were acquired on the Chianti and 23 Mile Tank prospects, and 216 additional semi-regional stations were read over the southern part of the tenement area, to provide a minimum 2 km X 2 km station spacing covering the entire tenement. In total 1045 new stations were read. The Midway prospect, characterised by a distinct kink in the geometry of the Elaine Zone geophysical feature, was tested by drillhole MGD 29 during November-December 2001 to look for a shallow dense NW trending body that appeared to be cross-cutting the main trend and might represent haematitic IOCG sulphide mineralisation, by analogy with geophysical features of the Ernest Henry deposit. The hole was declined at a nominal 70 degrees towards the west. Following the drilling of a 180 m long RAB precollar, NQ2 diamond coring commenced. The final hole path remained just above the planned trajectory and was only about 15 m west of it at end-of-hole. Pre-Pandurra basement was encountered at a down-hole depth of 679.55 m, equivalent to ~630 m below surface. The entire drilled sequence is composed of Gawler Range Volcanics that generally are comparable with those rocks recorded in nearby drillholes. The uppermost part of the volcanic sequence shows regolithic haematisation, and is noticeably brecciated locally. A late clay-silica alteration is superimposed on the haematisation. The regolithic alteration persists to about 720 m. Within the volcanic sequence there are two doleritic intrusions at 814.70-837.45 m and 908.06-914.87 m. The contact zones of the dolerite are fine-grained and difficult to distinguish from the enclosing volcanic material. Attitudes of the contacts were therefore difficult to determine. The dolerite is even-grained, contains amphibole laths (now chloritised) up to 3 mm long, and is only weakly magnetic. Distribution of red-rock alteration in MGD 29 is patchy, but locally becomes strong and texture destructive. There is no real development of cataclasis associated with the red-rock alteration, as was seen associated with copper mineralisation in other drillholes on the Elaine Zone. Superimposed on the red-rock alteration is a later stage of alteration expressed by irregular patches of haematite-carbonate-actinolite-fluorite. Trace disseminated pyrite is present below about 750 m, grading up to 5% by volume locally. Below ~950 m thin magnetite veinlets are present, and this is consistent with the original geophysical modelling that indicated that the hole should end close to the modelled top of the main magnetic source in the area (Body 29). The peak copper value returned by assaying of drill core samples was 603 ppm Cu (810–812 m), and the peak gold value occurs deeper in the hole (13 ppb Au, 885-890 m). The zone of copper enrichment is accompanied by elevated values of Au, Co, Ag and U. Because MGD 29 found no high-density lithologies within the Midway basement block, the source of the gravity anomaly remains unexplained. It was inferred post-drilling that the structures bounding the Midway block must be relatively late brittle features which have little or no expression within the block, even though considerable displacement may have occurred along its margins. At the end of 2001, Douglas Haynes of Douglas Haynes Discovery Pty Ltd was contracted to identify possible targets for Emmie Bluff style mineralisation within the Mount Gunson Project ground. Emphasis was placed on the definition of discrete residual gravity anomalies with associated (but not necessarily coincident) magnetic anomalies, and which occurred on or near apparent faults. Two specific targets were identified - one was located north-west of Bottle Hill near the northern margin of EL 2639, at what is now referred to as Chianti prospect, and the other was in the NE corner of EL 2516. Based on Haynes' recommendations, 416 infill gravity stations were read at Chianti prospect, followed by percussion drilling of vertical holes MGP30 and 31 during March-April 2002 to total depths of 504 m and 454 m respectively, to test a residual gravity anomaly with a modelled source lying at ~500 m depth. In 1981 CSR had drilled two percussion holes adjacent to what is now referred to as Chianti prospect. Hole EC46 had been abandoned within the Pandurra Formation at 248 m. Hole EC47 had reached a total depth of 200 m, after entering granitic basement at 178 m: later on, after completion of the percussion drilling, the hole was extended with diamond drilling to a final depth of 370.95 m. The EC 47 'granite' was interpreted as an altered Lincoln Complex unit. In January 2002, re-logging of this hole's drill core by Hamish Paterson and Ken Cross revealed that it had some characteristics in common with the near-ore environment at Olympic Dam. These included: • silicification in the upper part of the hole, together with hairlike sub-vertical fractures, which may have been pathways for streaming of fluids; • aplitic to microgranitic zones (dykes?) similar to those around Mine Area F in the north-western part of the Olympic Dam ore environment; • distinctive small flakes of pinkish mica which easily can be mistaken for native copper (with which they commonly co-exist at Olympic Dam); • abundant flecks of yellowish-white leucoxene; • rapid spatial variation from yellowish sericite-illite alteration zones to more-haematitic zones, that are commonly associated with dark green chlorite. The haematite is superimposed on earlier pervasive sericitic alteration. This overprinting represents one or more phases of fracturing and infiltration by Fe-bearing fluids that were probably slightly more saline, reduced and hotter than the sericite-altered wallrocks, and these fluids precipitated their iron as chlorite and earthy to microcrystalline haematite as they encountered the cooler, more oxidised sericitic environment. Repetitive events of this nature have produced many of the haematite-rich breccias in the Olympic Dam orebody (Reeve et. al. 1990); • local fracturing and incipient brecciation, often with a dark-green chlorite infill; and • local pegmatite zones and some granophyric sections. In Gunson Resources' drilling at Chianti, pre-Pandurra basement was intersected in MGP30 at a down-hole depth of 180 m, and in MGP31 at ~396 m. It is dominated by granitic lithologies, broadly similar to what was seen in the EC47 core. The MGP30 basement section was regarded as directly comparable with that of EC47, consisting of medium-grained altered granitoids with some aplitic sections. Variable haematitic and chlorite-sericite alteration is present. In MGP31, granite drill chips from sampled intervals beneath the base of the Pandurra Formation show intense sericitisation of feldspars with variable development of earthy haematite interstitial to and within sericite grains, and replacement of biotite and hornblende by chlorite ± haematite. Relatively unstrained, medium grained Hiltaba-style granitic textures are pseudomorphically preserved in many chips, whereas others show evidence of brecciation and attrition of the sericitic pseudomorphs. A hydrothermal splinter breccia is present in the interval 395-426 m, and looked similar to that seen locally in altered granite around the periphery of the Olympic Dam deposit. Textures of this type are reported to also occur in association with porphyry copper deposits, and are considered indicative of shattering produced by sudden hydrothermal decompression. These breccias have abundant hydrothermal haematite in the matrix to the quartz and feldspar splinters. Also in MGP31, a chloritised basalt occurring in the interval 426-440 m is quench textured. It is accompanied by holocrystalline microdolerite over the same interval, plus some haematite-sericite altered granite in the interval 434-440 m. Dolerite in the interval 440-452 m (to EOH) is medium grained and pervasively altered, but intergranular to mildly sub-ophitic textures are preserved. Pyroxenes are replaced by chlorite and epidote, and plagioclases by albite, sericite and prehnite. Titanomagnetite is replaced by haematite and rutile, and only a minute trace of relict magnetite is preserved. Gunson Resources concluded that at present it is it is difficult to reconstruct rock relationships in the pre-Pandurra basement intersected by MGP 31 with any confidence. Downhole sample assay results for both holes were only weakly anomalous, and taken on the whole trace elemental correlations did not give any suggestion of proximity to an IOCG mineralising system. A peak copper assay value of 303 ppm Cu was returned from the Tregolana Shale depth interval 56-64 m in MGP31. A reliable peak gold assay value of 304 ppb Au was returned from altered and brecciated granite over the depth interval 372-376 m in MGP30. During June 2000, a group of consultants was assembled by the joint venture to review the potential of the Mount Gunson Project tenements for stratiform copper. The study was based on a number of precepts with relevance to this area, including past exploration evidence of spatial and timing factors for orebody formation. Based on this model, eleven target areas were identified, which included the 23 Mile Tank area which had already been identified because of its geophysical signature. These targets were then ranked according to several criteria. It was decided to test seven of the ranked targets using broadly-spaced partial digest soil geochemical sampling. This method was chosen based on previous encouraging soil geochemical results, particularly for cobalt, that had been obtained over the concealed and blind Windabout deposit by Gunson Resources using Genalysis Laboratories' Terra-Leach TL1 trace metal extraction technique. The new sampling was done along traverses 800 m to 1 km apart, at nominal 100 m sample interval. Where the sampling traverses crossed major structures, the sampling interval was closed to about 25 m to test whether there was any indication of geochemical activity associated with these interpreted faults. Following the initial program of soil sampling (1200 samples collected), four anomalous areas were identified, and a second phase of infill sampling to 400 m x 80 m spacing (635 samples collected) was initiated to provide better sample density in these areas. Resulting assay data were interpreted using the "Weighted Sums" approach (Garrett and Grunsky, 2001) which involves normalisation of data subsets based on regolith or other considerations using robust statistical methods, followed by the combination of elements into subjective functions designed to represent relevant ore and pathfinder element associations. During the ninth year of tenure, no new field work was done on EL 2639. To progress the Proterozoic stratiform sedimentary copper search, the licensee's recommendations for drilling and further infill surface geochemical sampling were presented to JV partner BHP Billiton, but in January 2003 that company advised of its intention to quit the Mount Gunson Joint Venture. Gunson Resources immediately began to seek another JV partner, and busied itself with compiling all available regional geological and geophysical data to help it understand the stratigraphy and structure of the project ground. During the tenth year of tenure, work done on EL 2639 included: - acquisition of a single IP profile across the residual gravity anomaly at 23 Mile Tank prospect; - the conduct of a work site Aboriginal heritage clearance survey at this prospect; - drilling at 23 Mile Tank of a single vertical diamond cored exploratory hole, MGD 32, to 488.47 m; and - performing a review of all drill targets on the Mount Gunson Project tenement holding, in preparation for making partial relinquishments of the licences. The IP survey was performed in February 2004, along a 1.5 km line using a 300 m station spacing. As part of the same survey, a second line was read at the Moseley Dam anomaly on EL 3022. A base frequency of 0.125 hz was used. No formal report was received for this work, but the station locations, IP-resistivity raw data and two pseudosection/inversion model images were supplied for each prospect. Following the completion of soil geochemical sampling and of the IP profiling at 23 Mile Tank, a decision was made to drill the Neoproterozoic cover on top of an interpreted 100-200 m up-faulted block (relative to the stratigraphic situation seen in historic CSR hole LH1 located 2.2 km to the north) that could have stratiform copper mineralisation present in the Tapley Hill Formation. During May-June 2004, hole MGD32 was drilled with a 111.0 m percussion precollar and 377.47 m of NQ and BQ diamond coring. The geophysically prognosed uplifted setting was found to be absent, and thus the target Tapley Hill Formation possessed disseminated trace metal geochemical characteristics that are typical of where it is thick, and a stronger concentration of copper and cobalt near the upper contact of the formation. The peak copper assay value returned was 713 ppm Cu from 456-457 m depth. However, the assay results overall for the upper part of the Tapley Hill Formation (the only part able to be examined by this hole) were subdued. Because of drilling difficulties, MGD32 did not achieve its desired depth (the original plan was to drill to the base of the Tapley Hill Formation, at least). However, the hole could not be deepened due to the jammed NQ core barrel and rods left behind in the Whyalla Sandstone section, so the cause of the observed residual gravity anomaly remained unknown. Gunson Resources did not recommend that further work be done at 23 Mile Tank. A subsidiary exploration programme, targeting known small stratabound occurrences of secondary manganese mineralisation revealed in former copper mine pits west of Pernatty Lagoon, was conducted by Gunson Resources during 2002-2003 on behalf of Consolidated Minerals Ltd. Work undertaken comprised prospect scale gravity and IP surveying in June 2002, the re-processing and interpretation of SAEI aeromagnetic data aiming to look for controlling structural features, plus the drilling of 5 shallow angled RC holes for 109 m in March 2003. 948 gravity stations were read on a local 200 m x 50 m grid, with detailed infill to 50 m x 50 m over the old mine pits where the manganese oxide nodule layers are visible in the pit walls. No gravity responses were detected that might denote shallow dense mineralised bodies. Magnetic data interpretation suggested that the cover deepens going north-eastwards across the studied area, while a number of near-surface origin magnetic features were seen that could perhaps be associated with buried pods of Mn-Fe rich mineralisation. Due to land access restrictions imposed by Aboriginal heritage work area clearance surveys, the five RC appraisal drillholes were all located on the western side of the abandoned Main Open Cut pit. They were drilled through Pandurra Formation scree and other transported overburden into bedrock consisting of weathered Woocalla Dolomite and then into sandstone of the Pandurra Formation. One hole, MWRC5, was extended further into the Pandurra Formation in an attempt to locate steep fracture-hosted root zones to the manganese enrichment that lies at or near the upper surface of the dolomite. No significant manganese mineralisation was intersected by the drilling (based on visual examination of cuttings), and no samples were assayed. The drilling results essentially preclude the possibility of any westward extension or continuation of the manganese enrichments in the Main Workings. There may be limited extension to the east, but this material would lie underneath the embayment in Pernatty Lagoon, and the Barngala Native Title claimants had specifically precluded any further disturbance of the lake surface. Because likewise no drilling was permitted at Big Cut, a bulk sample was cut by hand from the eastern wall of these existing workings. Limited disaggregation processing of this sample indicated that the material could be upgraded to a lump product grading about 45% Mn. Field inspections confirmed, though, that the known mineralisation is unlikely to cover a sufficient area to constitute an economic resource. Similarly, at the Far North-west occurrence the Mn grades of selected hand samples were shown to be too low to be economic, even after upgrading by disaggregation and screening, and again, the available area of possible mineralisation is too small to be of economic interest. When it applied in mid-2004 to renew tenure at Mount Gunson for a third five-year licence term, Gunson Resources partially relinquished 233 square km or 16.2% of the former area of EL 2639, as a single block of ground that extended from Bonney Bluff to Pernatty Ridge on the eastern side of the tenement. During the eleventh licence year, under tenure of renewed EL 3264, the only field work done by Gunson Resources was the acquisition of two east-west orientated lines of MIMDAS surveying at the Chianti prospect during February 2005, using a 200 m station spacing along a total line length of 7 km. The southern line (Line 1) ran through the collar site of previous drillhole MGP30, and the northern one (Line 2) through the collar site of previous hole MGP31. Modelling of the IP and MT data done by contractor GRS suggested that weakly polarisable material could lie under the central two-thirds of Line 2. The magnitude of the modelled IP effect was deemed to be consistent with the 0.2% magnetite and 3% haematite content of the basement rock encountered in hole MGP31, as inferred from comparing it against published IP data gathered by independent studies of porphyry deposits. It was suggested that higher concentrations of polarisable material (perhaps double) at slightly shallower depths could be expected from drilling a hole 600 m west of MGP31. The very weak IP anomaly seen under the western three-quarters of Line 1 was thought to probably arise from not more than 1 or 2 volume percent of polarisable material starting at a depth of about 300 m. This is somewhat deeper than the haematite altered granite intersected in the basement at 180 m in hole MGP30. The licensee, however, was of the opinion that no strongly conductive anomalies appeared to be present at Chianti which could be deemed worthy of immediate drilling. However, later during the year Gunson Resources received exciting news about the discovery less than 20 km away to the east, by RMG Resources' PACE Initiative - assisted drilling on EL 2879 in June 2005, of the very large but wholly concealed Carapateena IOCG deposit [see Env 11036]. Consequently the licensee revised its stance and determined that at least two holes would soon be drilled at Chianti to provide further tests of the basement geology and alteration there. This plan was somewhat hindered by the inability to contract a suitable drilling rig because of the sudden upsurge in exploration activity and the ensuing retention by other companies of rigs already in use.