Sharp intelligence-spotting by an RAAF airman has led to a major coalition assault on a sophisticated Islamic State cave system in Iraq, killing an estimated 100 militants.
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But on the whole, Defence has acknowledged that progress against the Islamic State group remains patchy, with the militants continuing to make gains in some areas even as they are beaten back in others.
In the latest military briefing, the Australian Defence Force's Chief of Joint Operations, Vice-Admiral David Johnston, also confirmed plans were being drawn up for a possible increase to Australian troop numbers by sending trainers to boost the skills of the Iraqis.
"We are scoping options should government need them … looking both at what the campaign is … We're evaluating what might need to be done and be ready when required to bring options forward," Admiral Johnston said.
In one of the major successes by Australian troops so far, an RAAF airman in the back seat of a Super Hornet spotted an Islamic State fighter disappearing into a cave.
The weapons system operator "observed an ISIL militant moving towards what was later discovered to be a large, well-established and hidden network of caves and bunkers that were concealed in a hillside", Admiral Johnston said.
Within days, a multinational airstrike involving 20 planes attacked 44 targets along with a large ground manoeuvre by Kurdish forces near the city of Kirkuk, who "cleared it of remaining ISIL militants".
It was believed more than 100 Islamic State fighters were killed, Admiral Johnston said. Bombs were angled into the mouths of caves.
Admiral Johnston also revealed that Defence believes key Australian terrorism recruiter Mohammad Ali Baryalei – who was reported recently on social media to have been killed in a coalition airstrike – is likely in fact to be still alive.
"I've not seen anything to indicate on balance that he's dead," he said.
Australian commandos are now in Baghdad and have started their "advise and assist" role with Iraqi special forces.
Admiral Johnston said he expected they would start moving out into the field, including out to battalion headquarters, beginning within a fortnight.
The RAAF is also continuing to drop humanitarian supplies to people taking refuge on Mount Sinjar.
He said Islamic State fighters were still pressing in to the west of Baghdad, where the situation was "fairly fragile".
He said broadly there was a shift against the Islamic State but added the momentum "isn't consistent" and the gains have been "modest".
And increasingly, the Islamic State is resorting to typical terrorism tactics such as suicide bombings and roadside bombs – which Australian advisers will need to help the Iraqi forces combat, Admiral Johnston said.
He said the Shiite-led government in Baghdad still had work to do in winning over Sunni tribal leaders to turn them against the Islamic State.
"The steps are in the right direction but they don't appear yet to be sufficient for those who are highly sceptical based on years of observation of the previous government."
