Within the eight licences comprising the subject joint venture ground, farminee Gold Fields Australasia (GFA) has identified Neoproterozoic rocks of the Delamerian fold and thrust belt sub-province, and in particular of the region of maximum flexure (oroclinal bending) through the Nackara Arc region, as being highly prospective for containing sediment hosted, orogenic style gold mineralisation that may be analogous to the Telfer (>26 Moz deposit) style gold-copper mineralisation. Exploration activities during the reporting period were undertaken by GFA on the southern set of six JV tenements that surround Karoonda township, and in particular addressed the Wynarka target on EL 4016. Work completed there included the acquisition during January-February 2012 of 181 roadside gravity survey readings on a semi-regional 1.5 km station spacing, and the drilling of three vertical holes for a total penetration of 258 m, using a combination of aircore/ RC / rotary mud drill methods, which all failed to successfully penetrate the Cenozoic cover sequence lithologies and aquifers. Basement could not be reached due to encountering poor ground conditions including thick intervals of flowing sand, multiple and sometimes thick bands of silcrete / partially lithified Tertiary sedimentary sequences, and stiff plastic clays. Where it was difficult to penetrate poorly to moderately lithified overburden, a reverse circulation hammer bit was used. However, difficulties were experienced when using this bit due to its bell-shaped profile, which caused it to become stuck within zones of flowing sand. During May 2012, in third hole DEL12AC355 at 109 m depth, the RC hammer bit became irretrievably stuck and had to be abandoned underground after a day and a half of trying to pull it out. Due to not having reached their target, none of the three holes were sampled. GFA stated that the Wynarka drilling had now been postponed until a review of the drill site access and ground conditions was carried out, with the intent of changing future drilling equipment and practice so that the Wynarka target could be effectively tested.