Two adjacent licence areas forming part of a contiguous set of project tenements in the central Eyre Peninsula region are being explored by Adelaide Resources (AR) primarily for gold and base metals, which it is thought may occur in buried deposits conforming to the following mineralisation styles: • Archaean shear zone gold deposits - Challenger type • Archaean BIF associated gold deposits - Hill 50 type • Archaean VHMS base metal deposits - Golden Grove type • Archaean komatiite hosted nickel deposits - Kambalda type • Proterozoic (Hiltaba Suite associated) shear zone gold deposits - Tunkillia type • Proterozoic (Hiltaba Suite associated) iron-rich copper-gold deposits - Olympic Dam type • Proterozoic (Hiltaba Suite associated) skarn silver-zinc-lead deposits - Menninnie Dam type. The basic exploration philosophy has been to use calcrete geochemistry to search for major gold and base metal deposits by empirical methods, since this method had been shown to give good indications of anomalous gold within bedrock elsewhere within the Gawler Craton, as was recognised by the principals of Adelaide Resources during their earlier work done for Dominion Mining. In accordance with this chosen approach, AR's exploration work done jointly during the licences' first year of tenure, from October 1996 onwards, consisted of the collection for assay of 3081 calcrete samples from alongside farm tracks and, when permissions were later obtained, from on private land. Of these samples, 1493 were collected at a reconnaissance spacing of 1.6 km on an imaginary staggered grid. The reconnaissance samples revealed the presence of 11 geochemical anomalies, and so 1588 more infill (at either 800 m or 400 m spacing) calcrete samples were next collected to further detail these. The outcome from this step was that five anomalies were downgraded, three were confirmed as prospects but needed more sampling to define discrete gold highs for drilling, and three other confirmed prospects needed more drilling to identify the gold source. 33 vertical RAB and aircore holes with a combined total penetration of 903 m were drilled to depths of blade refusal in bedrock on EL 2178 during the second year of tenure, as AR's inaugural drilling campaign. These targetted [Kyancutta district] calcrete geochemical anomalies K01 and K03 which are located close to the Eyre Highway. At KO1, one-metre depth interval samples of fairly unweathered Archaean gneissic basement returned anomalous gold assay values in a number of instances, with a best intercept of 1 m @ 1.24 g/t Au in hole 97AC-K01-096 from 1-2 m depth (which was the end of hole depth). A notable arsenic content was also found there, including 82 ppm As in the aforesaid 1.24 g/t Au sample, 650 ppm As in hole 97RB-K01-103, and 420 ppm As in adjacent hole 97RB-K01-104. At KO3, anomalous gold is present in tectonised and altered Archaean gneissic basement encountered along each of the four traverses drilled. Results included 1 m @ 0.11 g/t Au in hole 97AC-K03-72, 3 m @ 0.23 g/t Au in hole 97AC-K03-73, 2 m @ 0.28 g/t Au in hole 97AC-K03-81, and 5 m @ 0.19 g/t Au in hole 97AC-K03-87. Significant base metal anomalism was also found here, the highest values being 73 ppm As, 490 ppm Zn and 1000 ppm Pb, all in hole 97ACK03-78, 1300 ppm Ni in adjacent hole 97AC-K03-79, and 1050 ppm Cu at the end of hole 97AC-K03-81. 14 RAB and aircore holes for a total of 678 m were drilled on EL 2178 during the third year of tenure, at two previously untested calcrete anomalies, KO11 South and KO4, which had been defined by the surface sampling conducted in years 1 and 2. Prior to drilling these two calcrete anomalies, regolith mapping was conducted at 1:10,000 scale to assist in interpreting the calcrete geochemistry. The mapping consisted of making a number of field traverses across the calcrete anomalies and recording regolith units and unit contacts. Final maps were compiled by superimposing the field observations onto scanned air photographs enlarged to the same scale. Topographic contours, and the locations of roads, tracks and fences, were included on the final plans. Informal names were given to the various regolith units. Six holes were drilled along two traverses to test the KO4 anomaly, but their sample assay results were uniformly disappointing, with neither anomalous copper nor gold returned from any hole. The highest gold content (maximum value 7 ppb Au) occurs in the uppermost drillhole samples on the western traverse, which also contain the calcrete horizon. This situation was believed to reflect the presence here of only unconsolidated, transported ?Tertiary regolith. The underlying bedrock, a coarse-grained quartz+biotite±feldspar gneiss, showed no signs of being hydrothermally altered. At anomaly KO11 South, the surface regolith expression is variable with informal units of Mullagundi Soil, Pinkawillinie Sand and Moongi Hardpan, plus an indurated lateritic pallid zone, all present. AR's analysis of the topography/calcrete geochemistry relationship did not suggest that any of the gold anomaly could be caused by transported cover. Drilling of eight holes along two traverses revealed that the cover was thin (<2 m); the laterite profile is not deeply incised, and comprises a relatively thick pallid zone overlying upper and lower saprolite units. Bedrock comprises both Hiltaba Suite granite and Archaean gneiss, the latter rock type occasionally displaying a sugary (hornfels) texture consistent with contact metamorphic recrystallisation. Evidence of hydrothermal activity is widespread. The granite has been fractured and chlorite alteration is well developed along fracture planes. Patchy silica+sericite/chlorite+pyrite alteration is developed in the gneiss. Despite the encouraging alteration observed, the drill sample assay results were disappointing, with no anomalous gold detected in any hole. During the fourth year of tenure, the majority of the ground on both subject licences was partially relinquished (i.e. ~93.5% of the original area of EL 2177, and ~47% of EL 2178 ditto) [see reports held separately in Envs 9757 and 9821 respectively]. The 1999-2000 annual work programmes for each licence were reported separately by AR due to significant forward - reaching exploration developments commencing on both tenements. On EL 2177, AR performed first pass infill calcrete sampling (total 27 samples @ 800 m spacing) at two previously identified anomalies, POR2 (a gold anomaly) and PAL10 (a copper anomaly). At POR2, check re-sampling of the original gold anomalous sites did not confirm them to be anomalous, however, sample E14413 collected at a new infill site returned a gold assay of 15 ppb Au – a most significant result. Additionally, sample E14409 returned a weakly anomalous copper assay of 18 ppm Cu. Consequently, the POR2 part of the licence was retained to allow for further evaluation of this anomaly via additional infill calcrete sampling, to determine whether it merited drilling. At PAL10, the infill samples failed to either repeat the original copper anomalism or to locate any nearby copper or gold anomalism, and so the anomaly was downgraded. On EL 2178, AR performed additional aircore drilling at the KO3 copper-gold prospect, and in concert with new joint venture partner Iron Road Limited, undertook extensive resource evaluation activities including ground geophysical surveying, RC drilling and laboratory metallurgical testing of magnetite mineralisation from the Warramboo deposit, as groundwork for the Warramboo Iron Project. Prior to undertaking further drilling at KO3, the regolith at this prospect was mapped at 1:10,000 scale to aid in understanding the cover's geochemical environment. Next, 18 vertical aircore drillholes for 913.9 m were drilled on a nominal 400 m x 400 m pattern. It was found that the cover sequence is dominated by aeolian sand and sandy loam soil overying lateritic weathered bedrock. A bleached kaolin-rich pallid zone often occurs above upper and lower saprolite horizons, before weakly weathered saprock is intersected. A thin layer of sulphide-bearing saprolite often marks the boundary between the upper and lower saprolite. Bedrock lithologies include gneiss of the Sleaford Complex and granite interpreted to be of the Hiltaba Suite. Evidence of hydrothermal alteration is widespread, with development of chlorite-sericite-sulphide assemblages overprinting the high grade metamorphic assemblages of the Sleaford Gneiss. Significant assay results were returned by a number of holes, with two possible zones of mineralisation (additional to those discovered in previous years) identified. Best intercepts of 1 m @ 0.46% Cu in hole KO3-0274 and 2 m @ 0.51 g/t Au were seen to lie within a thin sulphidic layer at the boundary of the upper and lower saprolite horizons, and were interpreted to be remobilised secondary mineralisation. Silver, lead and zinc were also elevated in this position. It was concluded that their primary source remains to be identified. AR compiled a stand-alone report summarising the results of the Warramboo Iron Project work that was completed during 2000. It stated that high quality magnetite concentrates assaying greater than 70% Fe had been produced. The JV partners were confident that concentrates of this quality could conceivably be used to produce iron ore pellets for sale into both the traditional blast furnace market, and also for use in the emerging direct reduction steelmaking industrial route. Supporting field activities during that year comprised the acquisition by PIRSA for AR of a 22 line km ground magnetic survey and a 12.2 line km gravity profile over two aeromagnetic anomaly target zones, geophysical data modelling and interpretation commissioned from consultant Chris Anderson, and the drilling of 6 RC percussion holes for 945 m in early April 2000 to investigate three target high magnetic intensity features in order to confirm the wider presence of economic grades of iron ore as first revealed by SA Department of Mines' 1961 exploratory drilling. The drillholes were inclined at 60 degrees towards local grid north, aiming to intersect both primary magnetic and secondary oxidised ore material. At the Murphy target on the Central North magnetic anomaly, the drilling intersected three magnetite gneiss units. Drillhole WMB-001 encountered an upper magnetite-bearing zone of 41 m @ 24.2% Fe, followed by 14 m of non-mineralised gneiss, before passing into a lower mineralised zone of 53 m @ 21.6% Fe (iron determined by XRF Fusion method). These two magnetite-bearing units were also intersected in holes WMB-004 and WMB-005 respectively drilled down- and up-dip from WMB-001. Drillhole WMB-006 intersected a third, thin magnetite unit in the footwall of the main mineralisation. The regolith at Murphy is not of uniform thickness, with depths to fresh rock greater in the south (about 50 m) than the north (about 20 m). High iron concentrations occur in the saprolite developed from magnetite gneiss parent, however, the iron is contained in non-magnetic and hydrated phases dominated by goethite. Martite was observed close to the regolith-fresh rock interface, but only persists in the lower 5 or so metres of the regolith. The variation in the thickness of the magnetite gneiss units interpreted from the drilling done at Murphy was thought to be the result of boudinaging which occurred during deformation associated with the Sleafordian Orogeny. The single drillhole WMB-002 that tested the Dolphin target at the Central North magnetic anomaly passed through unconsolidated cover sediments before intersecting fresh rock at relatively shallow depth. The lateritic weathered bedrock horizon appeared to have been completely stripped from the Dolphin area, an interpretation supported by the northerly decreasing thickness of the regolith at Murphy, which is located to the south-east of Dolphin. Two magnetite gneiss units of significance were intersected at Dolphin, including an upper zone of 24 m @ 17.8% Fe and a lower zone of 18 m @ 19.8% Fe (iron determined by XRF Fusion method). Due to the stripped lateritic profile, it was thought likely that magnetite persists to within about 13 m of the surface. The magnetite gneiss units at Dolphin are also likely to pinch and swell like those at Murphy: further drill testing on the section would be required to confirm this. The Collins target at the North-west magnetic anomaly returned less encouraging results. There the single drillhole WMB-003 did not encounter fresh rock until a vertical depth of around 47 m had been reached. Wide zones of magnetite-bearing gneiss dominate the bedrock lithologies, but the iron grade is relatively low, with intersections of 48 m @ 10.8% Fe and 78 m @ 11.3% Fe returned (iron determined by ICP-OES method). However, the JV partners said that it remains possible that higher grade magnetite gneiss is present along strike from Collins. Stored diamond drill core from SADM’s early 1960s appraisal drilling at Warramboo was re-examined, new summary logs produced, and downhole magnetic susceptibility readings taken. A local bedrock interpretation of the main Warramboo anomaly area was compiled using the drill logs and airborne magnetic data. Two main types of bedrock were recognised - quartz-feldspar-biotite gneiss enveloping magnetite gneiss zones consisting mainly of magnetite-quartz-feldspar-garnet-biotite gneiss. From the geological interpretation it appeared that the magnetite gneiss layers vary in thickness both along strike and down-dip, probably due to deformation during granulite facies metamorphism. But an alternative explanation held that this geometry may be related to facies changes that occurred during deposition of the original sediment (since the magnetite bands at Warramboo were thought to represent original pelites). During the fifth year of tenure no work was undertaken on either EL 2177 or EL 2178.