Continuing exploration for economic stratiform / hydrothermal base metal sulphide deposits in the Kalabity Homestead area, 40 km north of Olary, has comprised detailed geological mapping at 1:20,000 scale, outcrop rock chip geochemical sampling, petrographic determinations made on gossan samples, ground magnetic (5 line km) and reconnaissance transient EM (16.5 line km) surveys at various prospects, and scout shallow rotary percussion drilling (228 holes, total penetration 3471 m). An extensive in strike length, but narrow, sphalerite mineralised/massive gossanous horizon was delineated in the Mount Howden and Wiperaminga areas, which requires further evaluation. Joint venture partners to assist with such work were actively sought during this term, with data being made available for inspection, and field visits made with client company geologists. At the Honeymoon sedimentary uranium discovery site, located on the South Eagle farmin block covering the eastern side of the subject licence, a second and a third appraisal coreholes were drilled into the mineralised zone. It appears from field tests made on the drill cores that the mineralisation is amenable to solution mining, but a number of problems need solving with this application before it can be declared as technically feasible on a commercial scale. Some of the problems are now being investigated in the laboratory at Amdel in Adelaide. During August 1977 the SADM Hydrogeological Branch commenced drilling a cored cable tool hole into the uranium deposit, on behalf of CEC and Minad, in order to be able to carry out aquifer tests.