EL 24115 and EL 24195 Bowgan JV Project Partial Relinqiushment Report 26 November 2008

Abstract

The Bowgan Project, located 250 km northeast of Tennant Creek, consists of two contiguous exploration licences, EL 24115 and 24195. EL 24196 is located southwest of the other two licences and is reported separately. In April 2006, Hindmarsh Resources Limited (Mega Hindmarsh Pty Ltd) and Marengo Mining Limited entered into a Joint Venture agreement. The mineralisation model considered was unconformity-related uranium and gold near the contact between the crystalline basement rocks (Murphy Metamorphics) and the overlying sedimentary rocks of the South Nicholson Basin, similar to the Westmoreland deposits. Identification of a potential chemical trap, such as cross-cutting dolerite or graphitic shale, was also used as a targeting criterion. Assessment of previous exploration data, including geophysical data (AEM, ATMI) drill hole information and geological interpretation concluded that the target stratigraphy was absent from the area to be relinquished. Apart from an initial reconnaissance visit conducted to this area of EL 24115/95 during August 2006, no other exploration field work was completed within the relinquished area of these tenements. Consequently, in November 2008, a 36% block reduction being completed for EL 24115 variance of covenance granted on 16th of October 2008), and a 50% block reduction for EL 24195 was completed by Mega Hindmarsh Pty Limited and Marengo in accordance to Section 26 and 28, of the Mining Act (dated 18 September 2007). Variance of covenance was granted on 16th of October 2008, with a 36% block reduction being completed for EL24115. This report finalises the relinquishment of these blocks.