As part of the SAEI (South Australian Exploration Initiative), thirty reverse circulation drill holes totalling 1123 m (av 37.4 m) were drilled on the Terowie 1:50 000 mapsheet area to determine bedrock geology and geochemistry below Quaternary cover, with a view to testing: - a circular depression 1.5 km in diameter centred on Hiles Lagoon, with a coincident aeromagnetic negative anomaly, for a concealed kimberlite pipe. - the Umberatana Group - Burra Group unconformity around the Terowie Dome', for gold mineralization. - a northwesterly trending Landsat lineament corridor with coincident linear gravity and aeromagnetic anomalies. - anomalous gravity low zones. Two of the drill holes intersected kimberlite dykes. One is adjacent to Hiles Lagoon, and both are within the Landsat lineament corridor. The question of a kimberlite pipe concealed beneath Hiles Lagoon is unresolved. Samples from twenty of the drillholes recorded anomalous gold (up to 40 ppb) with associated elevated zinc, nickel and cobalt. Most of the anomalies are adjacent to the Umberatana Group - Burra Group unconformity around theTerowie Dome'. The kimberlite dykes are anomalous in gold (up to 42 ppb) and within the range expected for kimberlite associated with gold mineralization. The area is considered prospective for Telfer-style gold mineralization and diamondiferous kimberlite.