Exploration Licence 24196 Bowgan Project Second annual report for the period 06 December 2005 to 05 December 2006

Abstract

The Bowgan Project, located 250 km northeast of Tennant Creek, consists of two contiguous exploration licences, EL 24115 and 24195, and EL 24196, which is located southwest of the other two licences. In April 2006 Hindmarsh Resources Limited and Marengo Mining Limited entered into a Joint Venture agreement, whereby Hindmarsh is entitled to earn a 51% interest in the Bowgan Project by expending $200,000 in three years. Exploration activities completed by the company on EL 24196 during the reporting period consisted of a reconnaissance geological visit by Hindmarsh geologists, geological and geophysical interpretation by Hawke Geophysics Pty Ltd and a ground magnetometer survey. The primary mineralisation model considered was for unconformity related uranium and gold at the contact between the crystalline basement rocks (in particular the Murphy Metamorphics) and the overlying sedimentary rocks of the south Nicholson Basin. Identification of a potential chemical trap, such as a cross cutting dolerite or graphitic shale, was also used as a targeting criterion. Within EL 24196, seven locations were identified for initial ground follow-up. Based on the additional data collected, 3 sites have been proposed for drill testing.