As part of the South Australian Steel and Energy Project, MESA has targeted significant aeromagnetic anomalies in the search for a possible iron ore resource. At Peculiar Knob prospect, previous company exploratory drilling in 1985 of such a magnetic anomaly had encountered significant iron intersections. A follow-up MESA programme there, consisting of ground magnetics, gravity, RC-hammer and diamond drilling, has now outlined an Inferred Resource of 13 975 000 tonnes of coarse-grained, specular haematite grading 63.2% Fe, 0.31% Al2O3, 0.02% P2O5 and 4.8% SiO2, buried beneath 12-30 m thickness of Cretaceous cover. The ore zone is 15-36 m wide, extends laterally for 1100 m, and is steeply dipping. The purity of the coarse-grained, specular haematite ore indicates that two-stage crushing and screening may be the only beneficiation required. Further drilling is recommended to test the continuity and strike extent of this deposit.