Indiana Resources Limited reported that a HeliTEM airborne electro-magnetic (EM) survey has commenced at the Hopeful Hill Greenstone Belt within Indiana's 100% owned 5,713 km Central Gawler Craton Gold Project (`Project') in South Australia. The 323km HeliTEM survey will cover a cumulative strike of 38km of the Hopeful Hill Greenstone Belt and focus on the area which to date has demonstrated the greatest potential for zinc and nickel mineralisation. The HeliTEM survey is funded by the grant from the South Australian Government through the Accelerated Discovery Initiative (ADI).

The grant followed the completion of an assessment of Indiana's Project for base metal mineralisation and a high-level review completed by Dr Jon Hronsky AOM, a leading industry expert. The review completed by Dr Hronsky AOM identified the prospectivity for Volcanogenic Massive Sulphide (VMS) zinc-copper mineralisation within the HGD along with a recommendation to fully assess the nickel-sulphide potential. The key findings from Dr. Jon Hronsky's report are highly encouraging ­ including the identification of a large-scale, 17km, east-west striking zone of zinc anomalism.

The Company will also undertake a detailed review of the nickel-sulphide potential which is likely to initially include additional areas or flight lines for the HeliTEM survey. It is anticipated that the survey may identify bedrock conductors that could be a response from massive sulphide mineralisation. The southern portion of Indiana's Central Gawler Project is underlain by the HGD, a late Archean-Proterozoic arcuate tectonostratigraphic terrane in the centre of the Gawler Craton.

On Indiana's tenure it comprises three distinct greenstone belts: the Mullina Well, Hopeful Hill and Lake Harris Greenstone Belts. The HGD is bound to the south by the Yerda Shear Zone and has a lithological zone boundary to the north with the Wilgena Domain. The greenstone belt rocks have very limited exposure, and occur as a few scattered hills of basalt, and rare outcrop of metasediment and metakomatiite.

Indiana estimates that over 95% of the Lake Harris Greenstone Belt is under cover. Outcrop of highly weathered metakomatiite is limited to the northeast corner of Lake Harris, and greenstone-related basalts with relict pillow structures exposed at Hopeful Hill. The prospective greenstone sequence is covered by thin (<50m) Quaternary sand and Eocene fluvial channel deposits.

Given the limited exposure, the distribution and structure of the greenstones is based largely on interpretation of aeromagnetics, gravity and diamond drill core. The HGD is characterised by a series of sub-parallel east-northeast trending sinuous magnetic high features flanked by large ovoid to elongate magnetic highs and lows. The HGD lies within a similar broad setting of rock types and primitive compositions to greenstones as occur within the Eastern Goldfields and Southern Cross Provinces of Western Australia.

Archaean greenstone belts are renowned for hosting gold and base metals in Western Australia, conversely there has been limited exploration focus on these greenstone belts in South Australia to date. The HGD has been considered to have nickel sulphide potential by virtue of hosting several belts of komatiite rocks, of Archean (possibly earliest Paleoproterozoic) age. The Lake Harris Komatiite (discovered in 1991) was the first documented komatiite outside the WA craton and the easternmost occurrence of such primitive ultramafic rocks in Australia.

Indiana has the advantage of having secured a large portion of the three main known greenstone belts in the HGD; the Mullina Well, Hopeful Hill and Lake Harris Greenstone Belts. The ADI is a South Australian Government initiative designed to accelerate mineral discovery through innovative exploration and research projects in regional and frontier terrains throughout South Australia. ADI proposals are assessed and ranked against the merit criteria listed in the ADI Investment Guidelines by an independent expert review panel.

This is the first time Indiana has received a grant for its Central Gawler Craton Project.