EL 24196 Creswell Downs Bowgan JV Project Partial Relinqiushment Report 3rd March 2010

Abstract

The Bowgan Project, located 250 km northeast of Tennant Creek, consists of two contiguous exploration licences, EL 24115 (Bowgan) and 24195 (Benmara), and EL 24196 (Creswell Downs), which is located southwest of the other two licences. In August 2009, tenement manager Marengo Mining Limited and original JV partner Mega Hindmarsh Pty Limited entered into a Joint Venture agreement with Bowgan Minerals Limited. The mineralisation model for EL 24196 is unconformity associated uranium and gold near the contact between 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 a cross cutting dolerite, graphitic shale or magnetite-rich intrusive, was a targeting criterion. Assessment of previous exploration data concluded that the target stratigraphy was largely absent from the area to be relinquished. Apart from an initial reconnaissance visit conducted to this area of EL 24196 during August 2006, a small portion of a single magnetic survey line that was completed late in 2007 overlapped into the relinquished area that has been surrendered. Consequently, in November 2007, an initial 50% block reduction was completed, with a second 50% reduction being completed in November 2008 by Mega Hindmarsh and Marengo in accordance to Section 26 and 28, of the Mining Act (dated 18 September 2007). In January 2010, a partial reduction was enacted consisting of 8 out of the remaining 20 blocks being surrendered. In summary, the current active tenement area for EL 24196 consists of 12 blocks out the original 79 blocks that were granted on the 7 December 2004.