TARGET: Evaluation of the Koppio and Kookaburra Gully graphite prospects on southern Eyre Peninsula. EXPLORATION: Prospect gridding, 1:1000 scale geological mapping, orientation Max-Min II ground EM surveys, extensive trenching and channel sampling, bulk sampling, beneficiation testwork, and marketing studies. RESULTS: An indicated potentially economic graphite deposit of about 880,000 tonnes (to 50 m depth) was outlined at Kookaburra Gully by the construction and geological logging of 23 trenches. The richest zone of graphite mineralisation has a ~ 500 m strike extent and an average width at surface of about 16 m, with an average grade of 11.4% graphitic carbon. It occurs in weathered schists and gneisses, and apparently forms a discrete tabular body dipping steeply (at ~ 60 degrees) to the east. The mineralised horizons are probably contained within the dipping overturned limbs of a tightly folded anticlinal structure which plunges to the south at ~ 30 degrees. Narrow bodies of nodular magnesite are usually associated with the higher grade graphite in the centre of the deposit, and are thought to occupy the core of the anticline. However, a lack of good exposure of the bedrock means that the true nature and geometry of folding in the area remains obscure. More than 700 kg of bulk ore samples taken from the Kangaroo Gully deposit were sent to Amdel and to potential consumers for testing of beneficiation, mineralogy and flake properties to allow an economic assessment of the ore's potential. Commercial grade concentrates of coarse flakes were able to be produced, but recoveries were low, and a high proportion of the graphite flakes are less than 150 microns in size. Laboratory attempts to increase the recovery of coarser flake graphite by treating coarser fractions of crushed feed material were not successful. Petrological studies of the raw graphite ore and the processed concentrates showed that the graphite crystal clots are long and narrow, but more than 50% of them are deformed into irregular shapes, entraining contaminants of muscovite, quartz, limonite and calcite. Process parameters for optimizing the recovery of concentrates with larger than 150 micron size flakes were next determined by industrial engineering consultants Warman International in Sydney, using screening, bench scale flotation and tabling trials. When using a feed grade of 21.8% carbon, the company produced a variety of products that were above the flake size cutoff; when these were recombined they had a concentrate grade of 93.6% carbon, but this represented a recovery of only 10% of the total carbon in the feed. It was decided to produce two concentrates for submission to potential consumers: plus 150 microns @ 92% C, and minus 150 microns to 75 microns @ 90% C. These were sent to interested companies in the United Kingdom, West Germany, Japan and the United States of America.