Exploration for possible epithermal/hydrothermal base metal deposits formed within Proterozoic basement, in an area centred ~40 km east of Streaky Bay township, has comprised the acquisition of ground gravity (161 and 210 stations respectively read during September 1983) and ground magnetic surveys over two interpreted coincident gravity and aeromagnetic high anomalies of interest, followed by percussion test drilling of these confirmed anomalies. When tested by 6 holes with a total penetration of 344 m, they were found to be caused by basic intrusive rocks and granites, and not by any dense mineralisation. Up to 48 m thickness of kaolinitic clay in saprolite, recorded as being intersected by previous drilling in the Karcultaby area was deemed to be of economic interest, and selected drill cuttings samples of the clay, including some clean kaolin that was newly revealed from a 10 m thick layer intersected in drillhole KC2, were submitted by Techmin for assessment of their paper coating quality. Another similar, 10 m thick occurrence of kaolin, later found in an abandoned water well located 6 km north-west of hole KC2, was also sampled by Techmin and sent for testing. The mineral brightness overall was deemed to be adequate for paper coating purposes, but the clay slurry viscosity appeared to be unsuitable because of poor grain size distribution. Further testing of additional clay samples, and of existing samples with artificially upgraded properties, was recommended. A seventh, partially cored (over the depth interval 30-66 m) drillhole, KC5, was completed to TD 70 m during late 1984 in a position 10 m due west of the collar of hole KC2, to obtain optimal, clean, in situ samples of the kaolin.