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The Blue Rose Joint Ventureis located 300 kilometres north-east of Adelaide.  PacMag Metals Ltd can earn an initial 51% interest from Giralia in the 1500 square kilometre project through expenditure of $1 million within 2 years, including $500,000 before withdrawal, and can increase its interest to 75% by completion of a Bankable Feasibility Study.

At Blue Rose a shallow sub-horizontal oxide copper mineralisation zone has returned previous drill intersections from less than 10 metres below surface such as 41 metres @1.62% copper  and 48 metres @ 1.0% copper and 0.21 g/t gold.  Beneath the oxide zones drilling has intersected copper-gold-molybdenum sulphide mineralisation, which was subject to a South Australian Government co-funded (PACE) drill program.  Preliminary metallurgical testwork indicates the copper oxide mineralisation is amenable to conventional acid leaching and a desktop study is currently in progress to examine possible development options.

Reverse circulation drilling by Giralia and more recently by PacMag has intersected potentially significant copper and gold mineralisation within a skarn-altered Upper Proterozoic dolomite sequence adjacent to an altered Ordovician granite body (Anabama Granite) that is similar in age to the world class Cadia-Ridgeway deposits in New South Wales. Both secondary and primary mineralisation has been discovered at Blue Rose, with better primary intersections including 48 metres @ 0.82% copper, 1.01 g/t gold from 84 metres, 27 metres @ 1.41% copper, 0.33 g/t gold from

The limits of mineralisation have not yet been defined, and substantial further drilling is warranted to confirm the continuity of near surface secondary copper (gold) mineralisation and to test the extent of primary gold-copper mineralisation.

PacMag received the funding support and technical endorsement by the Department of Primary Industry and Resources of South Australia (“PIRSA”) for the drill testing of two copper –gold sulphide targets at the Blue Rose Project.

Peninsula Minerals Limited (ASX:PEN), has purchased PacMag Metals Limited's rights to uranium on the Blue Rose-Olary tenements in South Australia, and can earn 75% interest in uranium mineralisation on ELs 2938 and 2939  with Giralia's 25% interest free carried to the completion of a bankable feasibility study. Peninsula will spend a minimum of $250,000 on uranium exploration within 12 months of the 22 May 2007.

The Olary Joint Venture area is considered prospective for hard rock and roll front uranium deposits.  The northern Olary tenement is located approximately equidistant (35km) from Pepinnini Minerals' Limited Crocker Well uranium deposit and from the historic Radium Hill uranium mine.  Crocker Well contains 12.4 million tonnes @ 0.05% U3O8 and was the subject of a recently announced MOU with Sinosteel Corporation of China valued in excess of $30 million for a 60% interest. The Olary Project contains similar type and age rock sequences to those at Crocker Well and Radium Hill. 

Rock chip sampling by PacMag during the December 2006 quarter defined a new zone of strong uranium results with high grade assays of 0.73% U3O8, 0.31% U3O8, 0.30% U3O8 and 0.29% U3O8 on the northern Olary Joint Venture tenement EL 2939.  The new area sampled is 650 metres south (across a soil plain) from the Domenic prospect where previous rock chip sampling by PacMag returned up to 2.2% U3O8.