Following the conduct of ground magnetic and gravity surveys over a discrete magnetic anomaly that was left untested in previous North Broken Hill exploration of an area surrounding Bute township, the current licensee's diamond drilling (to TD 426.6 m) of this magnetic high zone present in buried Middle Proterozoic bedrock has defined its source as being magnetite that is pervasively dispersed within highly fractured phyllite and slate. Up to 10% of the recovered drill core consists of quartz and carbonate veins carrying accessory pyrite, magnetite and chalcopyrite (best sample assay result 0.731% Cu from the depth interval 164.6-164.68 m).