EL 24115 and EL 24195 Bowgan Project First Annual Report for the period 13 October 2004 to 12 October 2005

Abstract

The Bowgan Project is located 250 km northeast of Tennant Creek on the Barkly Tableland and consists of two contiguous exploration licences totalling 386 sq. km. Marengo Mining Limited is exploring the project area for unconformity style uranium-gold mineralisation within Palaeo - Mesoproterozoic sediments of the Murphy Inlier and the Nicholson Basin. The project area covers a basement dome of South Nicholson Group located at the intersection of deep crustal faults; namely the Fish River Fault, Walhallow Fault and Emu Fault. The basement dome occurs along the buried western extension of the Murphy Inlier which is known to contain a number of small uranium-gold occurrences. The main targets are conductors located by an airborne electromagnetic survey flown by BHP in 1996. These conductors were interpreted as being black shales located adjacent to the Fish River Fault. The company believes that this lithotype and structural setting is prospective for uranium-gold mineralisation. Exploration activities completed by the company during the reporting period involved a ground magnetic survey, preparation of drill access to site, and RC drilling to test the best conductors along with a range of other structural and geophysical targets. Nineteen holes totalling 1516 m were drilled. 286 composite samples were collected and submitted for gold, uranium and base metal analysis. No significant results were recorded. The area is still regarded as being prospective for unconformity style uranium-gold mineralisation and the next phase of exploration drilling will target the Murphy Inlier unconformity.