Slightly more than all of the western half of the subject licence area, representing 756 of 1433 square km, is being relinquished owing to perceived low exploration potential. This decision has been made because drilling results lately obtained on adjacent Project licences suggest that the local crystalline basement probably occurs beneath an unknown but probably excessive (i.e. >1 km) thickness of Mesozoic cover. Inspection of existing gravity survey data indicate that the western portion of EL 327 covers a region of low gravity response that contains no magnetic features of interest. No on-ground field work has been done there. The eastern half of the licence area is being retained to allow for further investigation of the Mount Allalone semicoincident gravity and magnetic anomalies. The acquisition of detailed grid-based ground magnetic and gravity surveys have earlier been undertaken by the JV partners to define possible drill targets. One exploratory percussion precollar hole, SR 11, has recently been drilled there to 103.9 m depth in the cover.