Low-grade, porphyry copper type mineralization at the Moonmera prospect is related to the intrusion of a granodiorite porphyry mass into the Upper Permian "Gracemere granodiorite". Significant copper mineraliza- tion appears to be associated with the alteration assemblage quartz-sericite- kaolinite. The ore shell is surrounded by a zone where montmorillonite and kaolinite are in greater abundance and this assemblage is over- lapped, mainly at depth, by potassium feldspar alteration. Secondary biotite is abundant throughout the mineralized zone. Preliminary sulphur isotope results on the sulphide mineralization are compatible with a magmatic origin for the sulphur.