EL 24115, EL 24195 and EL 24196 Bowgan Project Second annual report for the period 13 October 2005 to 12 October 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 during the reporting period consisted of a reconnaissance geological visit by Hindmarsh geologists and geological and geophysical interpretation by Hawke Geophysics Pty Ltd. 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. Nineteen target locations were identified for initial ground follow-up. These will test a range of interpreted unconformity surface, dolerite and basement conductor (graphite) features. Immediate follow up work included the collection of 59.8 km of ground magnetic data and 15,028 ground spectrometer readings. Based on the additional data collected, 21 sites have been proposed for drill testing.