At the request of Australian Magnetite Pty. Ltd. of Melbourne and with the approval of the New South Wales Mines Department a geophysical survey was carried out over a lease held by that Company near Gulgong, New South Wales, in the Parish of Puggoon in the County of Bligh. The area is situated about 7 miles north of Gulgong where the Company operates a mill for crushing, fine grinding and concentrating magnetite ore. The pulverized, concentrated magnetite is used in the heavy liquid separation and cleaning of coal. The present supply of magnetite ore comes from the magnetite mine at Tallawang, about 12 miles from Gulgong. As a results of increasing difficulties in mining this deposit, the best part of which has already been stoped out, Australian Magnetite Pty. Ltd. is desirous of opening up and developing a new and suitable deposit in order to ensure the necessary continuous supply of ore to the mill. The deposit of magnetite in the Parish of Puggoon is partly exposed in outcrops and in a trench, and is probably of lens-like form. It occurs in a Silurian formation. The task set for the geophysical survey was to determine the full extent of the deposit and its approximate shape before a decision was made on a position for a new opencut.